Members Approve Monterey Bank Conversion
The $212 million Monterey Credit Union reported Monday that of the roughly 21% members who voted on its proposed charter change, 80% cast their votes in favor of a bank charter.
That means 3,287 of Monterey’s 19,570 members whose shares were insured by ASI as of June 30 voted in favor of the converting to a bank.
“We are delighted with the overwhelming endorsement of the proposal by our members,” said Monterey CEO J. Stewart Fuller said in a prepared statement. “We look forward to expanding our products and services to the local communities we serve.”
The credit union said final approval of the change depends on regulatory approval, but it did not say what whether it would apply for a California or federal mutual bank charter. The credit union also said deposits would be insured by the FDIC once it became a bank.
Neither the FDIC nor the Office of Comptroller of the Currency said they have received a bank charter application from the credit union. The California Department of Business Oversight has not yet posted its July list of charter applications.
The Monterey County Weekly, a local media outlet, reported that the 20-page ballot package included strong endorsements in favor of the charter change from MCU’s board of directors. The outlet also reported that credit union employees were campaigning on behalf of yes votes in at least one credit union lobby.