Consolidation Plan of Two Organizations
By Joyce Moed, Reporter

TALLAHASEE, Fla.- The boards of the Florida and Alabama credit union leagues have voted to submit a consolidation plan of their two organizations to a vote by their memberships.

If approved, the consolidated entity would create an organization representing 332 CUs with total assets of $55 billion.

The boards of the Alabama CU League and the Florida CU League voted Dec. 8 and 9 respectively to propose a consolidation of the two groups under the name "The League of Southern Credit Unions (LSCU)." The next steps in the approval process entail communicating the details of the consolidation plan through a series of town hall meetings, as well as face-to-face meetings with individual CUs in both states, throughout January and February. League members will vote on the proposal at specially called membership meetings in early March.

Throughout the past five months, the two chairmen–Rich Helber of the Florida CU League, and Steve Sworfford of the Alabama CU League have expressed their agreement that consolidation would give credit unions a bigger voice in the political deliberations in Montgomery, Tallahassee and Washington. while providing a selection of business services and creating efficiencies of at least $1 million per year.

The consolidation was also driven in part by external factors, such as the financial meltdown on Wall Street.

"I believe pressure will continue to increase," said Guy Hood, president/CEO of the Florida CU League. "We have to look at ways to be more cost-efficient. By consolidating, we can do this."
Hood, and Gary Wolter, CEO of the Alabama CU League, are both expected to retire between April and June of 2009. One CEO will replace them.

"Other staff is retiring, so that should sort itself out," Hood said. "I don’t expect an adverse affect of staff for the consolidation."

Things that will not change from this merger is "our strong advocacy," and the current brands and logos, which are expected to be continued to be used in the respective states.

"Everything else will take on a new brand," Hood said.

Each league itself currently has about $7 million in assets, so the merger will allow for the new consolidating league to have about $14 in assets, Hood said.

The consolidation is expected to be finalized in early March, after the meetings–if it is approved.
As for location, "it will be a new company–an Alabama corporation, but headquartered in Florida," Hood said. "In the beginning it will be here in Tallahassee. If that changes, it will be a decision of the new CEO and new board."

The Alabama’s CU League’s leased space in Birmingham will still exist, Hood noted, and will house support staff.