Mid-Atlantic, VACORP Announce Intent To Merge

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MIDDLETOWN, Penn. & LYNCHBURG, Va. — The $3.2-billion Mid-Atlantic Corporate FCU and the $1.2-billion VACORP FCU have announced plans to merge, with Mid-Atlantic Corporate to be the surviving charter. The move may presage additional mergers among corporates, and follows by a month a merger between Georgia Corporate Credit Union and the remnants of Southwest Corporate FCU in Dallas.

Mid-Atlantic Corporate serves 900 CUs and CUSOs in four states, and wholly owns two CUSOs of its own. Virginia Corporate serves approximately 200 CUs, most of which are in Virginia. Mid-Atlantic Corporate, which reported $638,261 in net income through the first three quarters of the year, recently committed more than $120 million in capital as part of a new membership plan. In a statement to members, VACORP said its members will have to invest new capital as a condition of membership. Town hall meetings are planned for VACORP member CUs in coming months to discuss the merger plan.

The move comes after "an extensive process of analysis and due diligence by senior management and the VACORP Board," said " VACORP President/CEO Don Chapman. "Ultimately, our goal was to identify a solution that provided continuity of service for our members. It also was important to find a solution that expands the level of quality services and innovative products that VACORP members need to succeed in today's competitive marketplace. We believe this merger will accomplish that goal."

Mid-Atlantic Corporate President/CEO Jay Murray said, "I strongly believe in the cooperative corporate credit union model - a model built by and for credit unions. This merger exemplifies the power of working together for a common good. By combining forces, VACORP and Mid-Atlantic Corporate will be able to pool our individual resources and expertise resulting in a greater benefit for the whole."

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