MIDDLETOWN, Pa., and LYNCHBURG, Va. (11/16/11)--The memberships of Mid-Atlantic Corporate FCU and VACORP FCU have approved the merger between the two organizations, it was announced Tuesday.
The formal merger date is expected to be Feb. 4, with Mid-Atlantic Corporate as the continuing charter.
The merger had been approved by the National Credit Union Administration (NCUA) on Oct. 27, after which ballots were sent to the members of the Middletown, Pa.-based Mid-Atlantic and the Lynchburg, Va.-based VACORP. The announcement, made at a meeting of VACORP members in Richmond, Va., after tallying ballots from both corporates' members, said the vote was "overwhelmingly" in favor of combining.
Mid-Atlantic's total assets on the date of the merger are projected at $4 billion, with $130 million in Perpetual Contributed Capital (PCC) and $10 million in Nonperpetual Capital Accounts (NCA).
Capital ratios are forecast at:
- Retained earnings ratio of 0.55%;
- Leverage ratio of 4.73%;
- Tier 1 risk-weighted capital ratio of 23.80%; and
- Total risk-weighted capital ratio of 25.21%.
The combined corporate will have more than 800 members. By year end 2012, Mid-Atlantic Corporate forecasts that retained earnings ratio will be at 0.68% and the leverage ratio at 5.04%.
"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 Jay Murray, president/CEO of Mid-Atlantic Corporate. "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."
VACORP President/CEO Don Chapman noted that the combined entity would enjoy increased economies of scale. "Further, VACORP members will benefit from a broader array of products and services, and it will ensure continuity of high quality service--a key priority to us."
As with Mid-Atlantic Corporate's current members, the VACORP member credit unions joining Mid-Atlantic Corporate are required to make a capital commitment as a condition of membership.
Mid-Atlantic Corporate will maintain its current location in Middletown, Pa. Its directors, supervisory committee and officers will continue after the merger, said the joint announcement.