Giant Wescorp to invade turf of Washington Corporate.

Western Corporate Federal Credit Union is gorog after a state corporate's members.

One year after rejecting plans to merge with Wescorp, Washington Corporate Central Credit Union will have to compete head-on with the country's largest corporate.

Wescorp, which has $12.9 billion of assets, launched a marketing campaign Sept. 1 designed to reel in business from the Evergreen State's 209 credit

unions. The San Dimas, Calif.-based institution is the first regional corporate to encroach on a state corporate's turf.

"We've turned a comer," said Wescorp spokeswoman Margaret Blankers. "We think we can do a better job [than Washington Corporate]."

This is Wescorp's first big push into Washington, even though the state has been in its field of membership since the 1970s. Wescorp has about 900 members in Alaska, California, Nevada, and Washington. Thomas Bosster, acting president of $286.4 million-asset Washington Corporate, wouldn't comment on Wescorp's expansion bid.

Wescorp decided to make its move last month, shortly before the U.S. Central Credit Union board endorsed a plan to merge with interested corporates. Both moves are seen as indicators that an era of consolidation and competition is coming for the nation's 43 corporates.

Although some corporates have regional charters, there are 'only isolated incidents of competition among liquidity centers. Over the past six years, Wescorp and Washington Corporate have discussed combining, Ms. Blankers said. Last fall the executive committee of Washington Corporate's board looked to merge With Wescorp, but that proposal was rejected by the full board.

"We couldn't work anything out with Washington Corporate although we were close a couple of times," said Richard Johnson, president of Wescorp. "They decided it'd he best if they were on their own."

Wescorp, in some cases, offers better rates than Washington Corporate. For example, the California corporate offers a 5.86% rate to credit unions that invest $100,000 in a one-year certificate of deposit, and up to 5.96% if they invest more. Washington Corporate offers a 5.52% rate for a one-year certificate. "Wescorp investment rates are sometimes a little bit higher, but recently... Washington Corporate had a better rate" on an overnight line of credit, said Scott Henderson, vice president of finance at Kitsap Federal Credit Union, Bremerton, Wash.

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