HarborOne Bank Conversion Not Seen as Trend Setter
Richard S. Garabedian, a Washington attorney who specializes in credit union charter conversions, doesn’t think HarborOne Credit Union’s conversion to a state co-operative bank, approved by its members Monday, will trigger a wave of credit union charter conversions.
“Every credit union conversion is unique,” said Garabedian. “But I don’t think it means you are going to see a wave of charter conversions. It’s hard to predict what impact it will have but it may give some credit unions an incentive to look at the charter option because this one was passed by member.”
Nevertheless, Keeney doesn’t think the HarborOne conversion will weaken the credit union industry.
“I think that those that want to belong to a credit union are solid credit union members. We have some great, great credit unions and great management,” he said. “Occasionally, one will fall from the flock. It’s regrettable, but it’s not something that is totally unexpected.”