Members Approve Mid-Atlantic-VACORP Merger
Mid-Atlantic Corporate Federal Credit Union and VACORP Federal Credit Union announced that their memberships have approved the merger between the two organizations.
The announcement was made Monday at a VACORP members meeting in Richmond, Va.
The merger previously had won NCUA’s blessing at the regulator’s board meeting in October.
The formal merger date is now expected to be Feb. 4. As with current members of Mid-Atlantic Corporate, all VACORP member credit unions joining Mid-Atlantic Corporate will be required to make a capital commitment as a condition of membership, said Mid-Atlantic in a statement.
In an earlier interview with Credit Union Times, Mid-Atlantic CEO Jay Murray – who continues as CEO of the combined organization – declined to estimate how many of Lynchburg, Va.-based VACORP’s 165 members will choose to capitalize Mid-Atlantic.
Middletown, Pa.-headquartered Mid-Atlantic, before the merger, had around 700 members.
Mid-Atlantic presently projects its assets on the date of the merger to be $4 billion, with $130 million in Perpetual Contributed Capital (PCC) and $10 million in Nonperpetual Capital Accounts (NCA).
“This merger will give us the opportunity to grow the usage of our products and services, helping to keep costs down for all members,” said Murray in a statement. “This exemplifies the power of credit unions working together for a common good and demonstrates the value of the cooperative corporate model that credit unions built.”