NEWPORT NEWS, Va.– Virginia Beach Schools FCU and Langley FCU said members have voted in favor of their merger and the two CUs have received regulatory approval.
Plans call for the merger to officially take place on Nov. 1, with plans also calling for system integration to be completed by April 1, 2022.
“The merger between these credit unions will bring greater value, and provide more access to their combined members, employees, and the communities they serve,” the credit unions said in a statement. “BSFCU and Langley share similar values, a member-first philosophy, believe passionately in helping members save, borrow, and spend wisely, and are committed to making a difference in the communities they serve.
‘Similarities in Philosophy’
Tom Ryan, CEO of Langley will be the CEO of the combined organization, while Brian Clark, CEO of VBSFCU will be a VP with the combined organization.
“At every turn during this partnership, we’ve continued to see similarities in our philosophies and our vision. Both of our organizations are passionate about serving members.” Ryan said. “Langley Federal is honored that Virginia Beach Schools Federal Credit Union’s board of directors and leadership team put their trust in us and chose us as a merger partner. Together, we’re going to continue to do great things.”
According to the most recent data filed with NCUA, the $114.3-million Virginia Beach Schools has 7,028 members. It reported net Income of $219,433, with net worth 7.09%. The $3.923 billion has 297,228 members.
In disclosure documents NCUA requires be filed by all merging credit unions, VBSFCU also said up to seven members of its board will have the opportunity to serve on Langley’s Advisory Board.
Merger-Related Compensation
VBSFCU said there would be no distribution of net worth, but that numerous members of its senior management would be eligible for additional compensation as a result of the merger, including:
- CEO Brian Clark, eligible for a maximum payout of $398,878.89, representing a retention bonus of $50,000 if he remains with the CU thorough successful systems migration; $40,078 for unused accrued vacation and sick-time hours, and a “limited-time severance opportunity if during the first 12 months of employment with Langley he is terminated without cause, if he voluntarily resigns, or if he dies or is disabled, representing gross compensation of $306,898.
- Vice President Michelle DeMuro, eligible for a maximum payout of $36,203.85 if she remains with Langley through completion of system migration
- VP Carla Gregory, eligible for a maximum payout of $26,680.23 if she remains with Langley through successful system migration (including payout for accrued vacation and sick time)
- VP Amy Mallinson, eligible for up to $18,934 for remaining with CU through systems migration and for unused vacation and sick time.
- VP Becky Westman, eligible for up to $61,798.31 for remaining with the CU through successful system migration (including payout for accrued vacation and sick time)