FirstCorp Members Approve Unique Consolidation with Catalyst FCU at Special Meeting
First Corporate Credit Union
Phoenix, AZ – Friday morning in the Phoenix offices of First Corporate Credit Union (FirstCorp) the Members voted to approve the Purchase and Assumption (P & A) of the majority of FirstCorp’s assets by Catalyst FCU (Catalyst). At the Special Meeting of the Members it was announced that FirstCorp and Catalyst are on schedule to complete the necessary transitions of products and services in time for the unique consolidation to take place on October 29, 2012.
“We proposed this type of consolidation with Catalyst because it offers many benefits to our member credit unions, and I’m pleased to announce today that we have taken a major step forward toward completing the transition to Catalyst. All the Members support this concept of a sustainable model, which will allow us to continue to enjoy low-cost, comprehensive wholesale financial services well into the future.” said FirstCorp Chairman David Doss.
The transaction is unique – taking the form of a purchase and assumption of certain FirstCorp assets and share accounts. Legacy assets will not be acquired by Catalyst Corporate, but will remain in the FirstCorp charter until they mature or are sold at a later date. “This approach protects FirstCorp’s membership capital, which will remain at FirstCorp, and will also immunize Catalyst’s Members against the risk of future losses on these assets,” said Catalyst’s President & CEO, Kathy Garner.
FirstCorp Members showed great support for the consolidation proposal with 93.48% of eligible Members casting votes and 100% of eligible votes cast for approval of the transactions associated with the P & A by Catalyst. As with all corporate consolidations, this one-of-a-kind proposal will require approval from the NCUA and the Arizona Department of Financial Institutions. The corporates do not anticipate any obstacles, as this solution is advantageous for the Members of the corporates, the regulatory agencies, and all credit unions impacted by the status of the share insurance fund.
FirstCorp and Catalyst are on track to complete the transition and transfer of products, services, and accounts to Catalyst in time for the projected consolidation date of October 29, 2012. FirstCorp’s offices and final operations will be shut down in the weeks following the closing of the P & A.
The Catalyst Corporate FCU official capital offering period for FirstCorp Members period begins now and continues through October 26, 2012.