NORTH CHESTERFIELD, Va.–Virginia Credit Union has completed its move to a federal charter, although it will continue to operate under its current brand.
As a result, the $5.2-billion VACU will no longer be regulated by the Virginia State Corporation Commission’s Bureau of Financial Institutions, with which it has been in disagreement for several years over its attempt to expand its field of membership to serve the 10,000-member Medical Society of Virginia.
The state’s bankers have also challenged the expansion, as CUToday.info reported here.
“While VACU didn’t say explicitly that the MSV saga was a driver of the conversion, eschewing SCC regulation will help it avoid such a battle on the state level in the future should it attempt to expand,” RichmondBusinessSense reported.
The report added that VACU said the move to regulation by NCUA will help to streamline its regulatory requirements.
Merger Also in the Works
Meanwhile, VACU is currently looking to merge in the $1.6-billion Member One Credit Union, whose members are to vote on the combination next week.
Also, as reported earlier, VACU CEO Chris Shockley would lead the combined CU, while Member One CEO Frank Carter would remain in an executive role.
Each side expects to maintain its respective headquarters to remain.
Not Everyone Supports Merger
With a vote set for next Tuesday, not everyone supports the merger, according to a report by WFIR news. The news outlet said some employees and members of Member One FCU are “not all that happy about a proposed merger” with VACU. To listen to its report, go here.