Cap Corp's merger negotiations with Western Corporate Federal Credit Union came to a head Wednesday as the two corporate credit unions announced plans to unite.
Wescorp, based in San Dimas, Calif., signed a letter of intent Dec. 28, and began due diligence on Cap Corp's assets. Deloitte & Touche is helping Wescorp with its review, which should be wrapped up by Jan. 6.
"We can't rush the process because we need to know everything relevant to making a decision," said Richard M. Johnson, Wescorp's chief executive. "We want to ensure we can keep our commitment to paying market rates to our member/owners."
Ron Keeler, Wescorp's chairman, added Wednesday: "From what we've seen, we believe merging Cap Corp with Wescorp will prove beneficial to the members of both organizations."
Wescorp is the nation's largest corporate credit union, with $12 billion in assets and about 1,000 members. Cap Corp has $1.5 billion in assets and 450 members.
An application to merge will be filed with the NCUA in mid-January, officials said.
