Members vote against Centra, Hoosier Hills merger
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A planned merger between Columbus-based Centra Credit Union and Bedford-based Hoosier Hills Credit Union is off the table. The credit unions announced Thursday that the deal did not receive a majority of votes from members to move forward.
Centra Credit Union announced the merger in January, saying the combined entity would retain the Centra name and have just over $3 billion in assets.
However, the credit unions said in a joint statement that “despite extensive communication from Hoosier Hills outlining the factual details of the merger, the vote was impacted by the circulation of misinformation.”
“Our Members are dedicated ambassadors for Hoosier Hills Credit Union, and we appreciate their energy and passion,” Hoosier Hills CEO Travis Markley said in written remarks. “We will continue to find new and innovative ways to grow and deliver enhanced products and services now and into the future, as we focus on serving our Membership and the underserved. Centra is an outstanding, strong financial organization and we will continue to be collaborative partners.”
The merger had already been approved by the National Credit Union Administration and the Indiana Department of Financial Institutions, as well as the boards of each credit union.
Further details on the alleged misinformation were not provided.
“I’m grateful for the trust our Members placed in us regarding this partnership,” Centra CEO Rick Silvers said. “I’m also grateful for the passion that Hoosier Hills Members displayed during this process. It’s that passion from Members that will keep credit unions thriving. We’re cooperatives, which means we all succeed together.”
When asked if a potential merger could happen in the future, a spokesperson for Hoosier Hills said, “We would never say never, but our focus, as always, is on understanding our members’ concerns and moving forward in a way that respects their wishes as member-owners of Hoosier Hills Credit Union.”
The spokesperson said the credit union’s board is convening to outline their future strategy.