HarborOne Credit Union said it is considering a charterconversion to a mutual savings bank.

The $1.8 billion credit union, based in Brockton, Mass., placedthe announcement from the board of directors to members on itswebsite.

“A mutual co-operative bank is owned by and operated for thebenefit of its depositors in a manner similar to the way a creditunion is owned by and operated for the benefit of its members,” thenotice said.

“If, after reviewing comments received by members, the board ofdirectors votes to proceed with the conversion, you will receive anotice and information statement that provides greater detail onthe reasons and consequences of the conversion,” it added.

The credit union said among the reasons to convert were theflexibility to expand HarborOne's customer base, increase itslending authority and gain access to additional capital.

The board said, “We believe that with increased lendingcapacity, HarborOne would be able to generate greater revenues,which would help sustain our attractive deposit and loan rates andfees and add additional branches. Of special import given thecurrent economic climate, enhanced commercial loan authority would allow us to furtherexpand our small business lending program.”

The announcement went on to say, “The board of directorsbelieves having the flexibility to access capital options is astrategic necessity. At this time the board does not have anyintention to convert to a stock form.

“However, the board of directors believes thatestablishing the flexibility to access capital options through aconversion to stock form is prudent, and in any event,Massachusetts law would prohibit a stock conversion for a one-yearperiod after the conversion. Additional capital may be required inthe future for any number of reasons, including to supportincreased lending to members, to build new branches, or to enhanceproducts or services.”

The board invited written comments from members. Comments aredue before March 16. The board will consider the comments andconsider the conversion plan on March 21.