ALEXANDRIA, Va. — In closed session Oct. 25, NCUA declined to approve a merger proposal between VolCorp and WesCorp.
While WesCorp President/CEO Bob Siravo said though they were disappointed, the two would "regroup and refashion our strategy."
"While this merger process, ultimately intended to enrich VolCorp credit unions with improved rates and expanded product choices, maybe without a doubt, painstakingly tedious to complete, it demonstrates the unwavering commitment of the board, officers and staff at both VolCorp and WesCorp to respond to member requests seeking the enhanced level of services they rightly deserve," he said.
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Siravo concluded, "Today's decision does not end our support to VolCorp members. It is simply the conclusion of another chapter."
VolCorp will continue on with its strategic planning and move forward as an independent corporate while the two corporates work on their merger plan
going forward.
The WesCorp/VolCorp merger has moved at a snail's pace. The deal was announced back in November of 2005. The merger first ran into trouble on the state level. The Tennessee Department of Financial Institutions initially shot down the merger, saying it wanted to see more benefit to VolCorp members. Early on it was made known that VolCorp members would have capital returned to them, but the Tennessee regulator said the amount wasn't enough. The merger plan was later changed to appease the regulator. However, NCUA has also made it clear that it is not in favor of capital being returned in mergers.
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