WesCorp Falls Short On Recap

SAN DIMAS, Calif. – WesCorp FCU, trying to re-charter as United Resources FCU, said this afternoon it fell $110 million short of its capital raise goal and is working with NCUA on an alternative plan. United Resources’ capital call period ended yesterday, raising approximately $90 million, far less than the $200 million sought. Matt Davidson, United Resources chair and CFO for the $3.1-billion Kern Schools FCU, suggested that NCUA will now guide the future of the former WesCorp, and hoped Western Bridge operations and its members can be moved in whole to another corporate. “It is a sad day,” he told the Credit Union Journal. The one-time $34 billion corporate has been under NCUA conservatorship since March 2009 and is one of five failed corporate credit unions. A communication from United Resources President Phil Perkins and Davidson to the corporate’s members asked them to “await the new proposal and to take the time needed . . . to give it the due diligence and consideration.” The communication said that “more concrete details and time frames” will be shared as soon as possible. “For now, if you committed capital to United Resources, it is safe and will be returned to you,” the letter stated. “Furthermore, there is no need to rush to invest in an alternative solution.” Davidson said NCUA had reaffirmed that continuity of service and operations for all Western Bridge member credit unions will be maintained. “There are no plans to close Western Bridge’s operations, move credit unions off the platform, or begin winding down.” David Small, NCUA spokesman and assistant director of public affairs, has reported that if a corporate fails to raise the necessary capital that the agency will begin the process of winding it down. “NCUA will wait to hear the final results of the capital raises in order to give every credit union the opportunity to decide on whether they choose to support the member-driven solution, or transition their services to another service provider,” Small informed the Credit Union Journal last week.