The proposed conversion of the $1.8 billion HarborOne Credit Union to a mutual bank triggered fresh industry debate last week about the impact and efficacy of conversions as the Brockton, Mass., CU formally tendered its resignation from CUNA and the Massachusetts Credit Union League.
Is conversion bid a sign of things to come? That's one point raised in this look at an article from next week's print edition.
Industry participants aren’t sure whether HarborOne Credit Union’s possible conversion signals a growing trend or is just an aberration.
Washington attorney Steve Bisker says the 141,000-member HarborOne is at only 20% of its member business lending cap.
The 144,000-member, $1.6 billion Apple Federal Credit Union, Fairfax, Va., has become the first large credit union to leave CUNA this year. Three other large CUs, two from New Mexico and one from Texas, left the trade group last year.
Now there are two large credit unions, the $1.8 billion HarborOne Credit Union of Brockton, Mass., and the $1.5 billion Technology CU of San Jose, Calif., making plans to convert to mutual bank charters.
One conversion specialist said he sees more ready to make the switch.
"Cooperative bank charter" may exist only in Massachusetts law; CEO says "we have to compete with everyone in the market."
In a statement, the league stressed that it is important for credit unions to consider the interests of their members first and foremost.
Billion-dollar Brockton, Mass., CU posts notice on its website.