Statement on benefits and reasons for merger

By unanimous approval, the Boards of Directors for Hoosier Hills Credit Union and Centra Credit Union have concluded the proposed merger is desirable and in the best interests of members of both institutions for the following reasons:

Significant alignment in purpose and mission

Hoosier Hills Credit Union and Centra Credit Union are well-aligned in their commitment to members, as evidenced by their shared priorities of financial wellness and community support. The Hoosier Hills mission statement “to be better for our members by making a positive difference in their lives and in the communities we serve,” aligns with the Centra vision statement “creating value for our members, team members, and the communities we serve.” Both organizations strongly support credit union philosophies, where the concept of “people helping people” is woven throughout daily operations and strategic initiatives. The synergies created by the merged partnership will allow the combined entity to deliver on these commitments more quickly and with greater impact than either could individually.

Increased breath of products and services; continued trusted relationships

Considering the complementary nature of the institutions’ product and service offerings, members from both credit unions will gain access to a wealth of new options. Hoosier Hills has extensive property and casualty insurance offerings and specializes in agricultural lending products. Centra brings additional wealth management services as well as appraisal and title services leading to enhanced end to end mortgage services for members. Together, the larger organization will be more nimble, proactive, and better able to quickly introduce products and technological advances to meet members’ needs in an ever-changing market. The partnership between Hoosier Hills and Centra provides this wider breadth of products and services through continued, outstanding service from the familiar faces the members know and trust.

Enhanced community outreach and impact

As strong supporters of the local communities they serve, both Hoosier Hills and Centra prioritize community financial support, paid team member volunteer time, and financial education within their footprint. As declared in its Pledge 1% commitment, Hoosier Hills has promised to contribute at least 1% of net income to non-profit organizations in its communities. This pledge, in addition to continuing the commitments of the Centra Foundation, will continue to be funded and expanded upon by the combined Credit Union.

To that end, Centra recently announced plans to establish a new department focused on financial outreach, education, and inclusion, which will extend across the expanded organizational footprint. The proposed structure of the merged enterprise includes senior-level talent focused on inclusive member products and services, as well as corporate social responsibility measures to ensure a greater commitment to members and communities. As a result, the combined Credit Union will help increase financial wellness for all, and will stand as an even stronger community advocate, with plans to donate an additional portion of net income generated when the credit union performs well.

Increased opportunities for member feedback

Throughout the process of combining these independently strong institutions into a single credit union, the voice of the member will remain a guiding force. Today, both credit unions prioritize member feedback in their operations. The combined Credit Union will expand opportunities for member input by adding advisory councils to ensure the combined Credit Union remains in touch with member feedback, needs, and preferences across the combined field of membership.

Improved team member resources and opportunities

All team members from Hoosier Hills and Centra will be offered comparable position-level roles in the combined Credit Union. Additionally, all team members will receive similar or better compensation and benefits packages. The combined Credit Union will adopt a compensation philosophy to pay above market rates to attract and retain top talent to serve members and enhance member services.

Team members will also have increased access to training, resources, and development opportunities to advance their career in the combined Credit Union. Together, the combined organization will seek to strengthen intrinsic and robust employment values and commit to creating an even richer company culture marked by purpose, value, transparency, and inclusion for all.

Operational efficiencies enabling sustainability and growth

A partnership of this kind, which presents minimal redundancy and no branch overlap, capitalizes on the advantages of scale, creating greater operational efficiencies for the merged organization. Trends in the financial services industry underscore the need for scale, and with sustainability and growth serving as tenets for both organizations’ multi-year strategic plans, this partnership enables initiatives as outlined for members and team members alike.

All credit union locations and service centers will remain open under the combined organization, which will focus on continued growth through these expanded locations by capitalizing on enhanced delivery channels. Scale also enables expansion into new and underserved markets at a quicker pace.

Upon closing, the combined Credit Union will have approximately $3 billion in total assets, 38 full-service locations, and 35 stand-alone ITM/ATM locations, which will support sustained and strengthened service to members through enhanced products, technology, convenience, more competitive pricing, and the added benefit of a larger combined footprint to support future organic growth.

Talent synergies, increased eligibility and strong leadership

After the proposed merger, Rick Silvers, the President and CEO of Centra Credit Union, will continue as the President and CEO of the combined Credit Union, with Hoosier Hills Credit Union current President and CEO, Travis Markley, serving as Chief Experience Officer. Senior and Executive leadership from both organizations will continue to serve on the leadership team to guide and support the combined Credit Union.

The Board of Directors for each credit union has determined that merging Centra Credit Union into the Hoosier Hills Credit Union charter, while maintaining the Centra Credit Union name, is in the best interest of members from both institutions. Merging into the Hoosier Hills charter provides additional opportunity and eligibility beneficial to the strategic planning efforts of the combined Credit Union. The Board of Directors from each credit union will be combined into a single board, with representation relative to each institution’s asset size and membership.