Technology Credit Union Appears Still on Bank Conversion Track
As it convenes its annual meeting Wednesday, the $1.5 billion Technology Credit Union said it is still going through the process of converting to a mutual savings bank.
The San Jose, Calif. credit union, which formally signaled its intentions last October, said it is awaiting NCUA clearance on various disclosure materials which it did not specify.
“A vote will not take place until those materials are mailed to our members in the required manner,” said Lisa Fettner, vice president of marketing.
Technology is the second-largest credit union to make known in recent months its plans to leave the system.
The $1.8 billion HarborOne CU of Brockton, Mass., announced its proposed conversion to a specialized Massachusetts co-op bank charter in February.
Conversion lawyers have stressed the savings bank conversion process is a long one which can take up to a year to complete and that final member approval can sometimes be a barrier.
Fettner stressed that Wednesday’s annual meeting was “open to Tech CU members only” and that no press would be allowed.
Like other credit unions proposing to convert, Tech maintained in a formal Web posting in October that capital and business lending flexibility, as well as expanded branch powers, would allow the credit union to grow.
The California/Nevada Credit Union League said Tuesday that Technology remains a dues-paying member.
HarborOne surprised the industry when it quit CUNA and the Massachusetts Credit Union League ahead of any member vote.