NASHVILLE — The merger of the $27 billion WesCorp and the $1 billion VolCorp took another step forward recently.
VolCorp reported that 93% of its members approved the merger.
A special merger meeting of VolCorp members was held Jan. 5 in Nashville. Member credit unions could vote via mail ballot and at the meeting. Of its 207 member credit unions, 115 VolCorp members participated, with 107 voting in favor. State Employees Credit Union CEO Jim Blaine, who heads the nation's second largest credit union, was on hand. Blaine's CU is a member of VolCorp. Blaine expressed concern about the value proposition given that any credit union can join WesCorp on its own, and questioned whether a merger was necessary. He also wanted a better understanding of the capital payout plan. There is some speculation that Blaine is seeking to see this merger become a model with NCUA for future credit union-to-bank conversions in that capital is paid out all at once.
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The merger ran into some regulatory hurdles on the state side in Tennessee early on as the regulator asked to see "compelling" benefits for VolCorp's members. That in part led to a capital payout plan where VolCorp members will receive a payout over a 20-year period.
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