Southern Indiana Business Report
BEDFORD – Members of the Hoosier Hills Credit Union voted against merging with Centra Credit Union, a credit union based in Columbus.
The credit unions announced Thursday the result of HHCU member voting.
Centra and the Bedford-based HHCU announced in January that they had entered a formal merger agreement that would be subject to approval by regulators and members of both credit unions.
At the time, Centra reported assets of about $2.06 billion, and HHCU had approximately $880 million in assets.
The boards of both credit unions had approved the merger.
HHCU members had the option of a mail-in ballot or voting in person May 22.
In a joint statement, the credit unions stated their goal of the merger was “to increase and enhance our Member products, services and conveniences as well as our ability to compete and give back to our Communities, while providing greater career opportunities to our Team Members.”
The statement continued, “Decisions like this merger are made by Members, who as owners of our institution, can vote. The preliminary vote results released by the third-party administrator indicated that the majority of Hoosier Hills Members who voted are not in favor of merging with Centra under the terms of the agreement as outlined. Although we are disappointed in the voting results, we appreciate the passion of our Hoosier Hills Members, and their willingness to be involved in this democratic process.”
In the weeks leading up to the vote, HHCU outlined details of the merger to its members on its website and on social media. On May 1, HHCU clarified aspects of the proposed merger that it said was in response to misinformation that was circulating on social media.
HHCU clarified the voting process, job security of employees and assured members HHCU would remain a strong and stable credit union if the merger wasn’t approved, “However, without the size and scale provided by a merger of this size, the pace at which we can introduce new products and services, technological improvements and increased benefits to our Members and Team Members will be slower than it would be if this merger was approved and may impact our ability to stay competitive and maintain best in class products in our markets over the coming years.”
Centra CEO and President Rick Silvers said Centra has decided to proceed with its member vote June 3 to allow members to have a voice.