Virginia Credit Union will continue with the same name even after it converts into a federal credit union. (BizSense file photo)
Richmond’s biggest credit union is now a federal credit union.
Virginia Credit Union has completed its conversion from a state-chartered institution to a federal charter.
The conversion was made official on July 1.
The change means VACU is no longer regulated by the Virginia State Corporation Commission’s Bureau of Financial Institutions. It is now solely regulated by the National Credit Union Administration.
The $5 billion Chesterfield-based credit union’s name remains the same, though the word “federal” is to be added to its legal name.
No other changes are expected to VACU’s operations as a result.
The charter switch comes about two years after VACU was thwarted by the SCC in a drawn-out legal battle against a group of bankers who sought to block the credit union from expanding by offering membership to the 10,000-member Medical Society of Virginia.
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.
The credit union said the transition also would streamline its regulatory requirements, because it had already been under the jurisdiction of the NCUA, as well as the SCC while state chartered.
With the conversion completed, VACU continues its process of merging with Roanoke-based Member One Federal Credit Union.
Announced in January, the marriage would combine VACU’s $5.2 billion in assets, 320,000 members and 22 branches in central Virginia, with Member One’s $1.6 billion in assets and 150,000 members. Its 15 branches are clustered in Roanoke, Lynchburg and the Blacksburg area.
At nearly $7 billion in total assets, the combined organization is expected to be among the 50 largest credit unions in the country.
VACU CEO Chris Shockley would lead the combined organization. Member One CEO Frank Carter would remain in an executive role.
Each side expects to maintain its respective headquarters: VACU’s in Chesterfield and Member One in Roanoke.
The deal has already been approved by the boards of both sides. It awaits a vote from Member One members and approval from the National Credit Union Administration.
VACU previously said its federal charter conversion was unrelated to its merger with the federally chartered Member One.
Virginia Credit Union will continue with the same name even after it converts into a federal credit union. (BizSense file photo)
Richmond’s biggest credit union is now a federal credit union.
Virginia Credit Union has completed its conversion from a state-chartered institution to a federal charter.
The conversion was made official on July 1.
The change means VACU is no longer regulated by the Virginia State Corporation Commission’s Bureau of Financial Institutions. It is now solely regulated by the National Credit Union Administration.
The $5 billion Chesterfield-based credit union’s name remains the same, though the word “federal” is to be added to its legal name.
No other changes are expected to VACU’s operations as a result.
The charter switch comes about two years after VACU was thwarted by the SCC in a drawn-out legal battle against a group of bankers who sought to block the credit union from expanding by offering membership to the 10,000-member Medical Society of Virginia.
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.
The credit union said the transition also would streamline its regulatory requirements, because it had already been under the jurisdiction of the NCUA, as well as the SCC while state chartered.
With the conversion completed, VACU continues its process of merging with Roanoke-based Member One Federal Credit Union.
Announced in January, the marriage would combine VACU’s $5.2 billion in assets, 320,000 members and 22 branches in central Virginia, with Member One’s $1.6 billion in assets and 150,000 members. Its 15 branches are clustered in Roanoke, Lynchburg and the Blacksburg area.
At nearly $7 billion in total assets, the combined organization is expected to be among the 50 largest credit unions in the country.
VACU CEO Chris Shockley would lead the combined organization. Member One CEO Frank Carter would remain in an executive role.
Each side expects to maintain its respective headquarters: VACU’s in Chesterfield and Member One in Roanoke.
The deal has already been approved by the boards of both sides. It awaits a vote from Member One members and approval from the National Credit Union Administration.
VACU previously said its federal charter conversion was unrelated to its merger with the federally chartered Member One.