Corporate Network Breaking Apart, Says Veach
It's becoming increasingly clear that the corporate network, which has served the industry well in a particular manner, is breaking up, with each corporate going its own way, the head of the $1.5 billion Volunteer Corporate Credit Union maintains.
In an interview, Rick Veach, the president/CEO of the Nashville, Tenn.-based corporate, said distinctions continue to be made between the healthy and the ailing entities but it remains unfortunate that "we all get lumped together."
Citing its 4% capital, $5 million retained earnings and a supportive base, Veach said Volunteer is hoping to get its 265 credit unions to convert their capital to a permanent status during a series of Tennessee town hall meetings this month.
In the meantime, Volunteer and a number of other corporates are charting "different strategies and they are all not the same," Veach observed, pointing to the decision last month by the $100 million Iowa Corporate Central CU of Des Moines to dissolve under a proposed deal with National Cooperative Bank of Washington and the Iowa Credit Union League.
"Each corporate has to choose what it sees are the best opportunities and as for Volunteer, it expects to stay independent with no plans to pursue a merger," Veach said, adding there is nothing right now "that would cause us to pursue some drastic step."
Veach also noted the Nashville CU's balance sheet is in good shape and "we have caused no losses to our members."
Meanwhile, outsiders tend to lump together all the corporates "without recognizing distinctions," he concluded.