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.
This online only article accompanies the comprehensive looks at the year gone by in the Dec. 21 Year-in-Review print edition of Credit Union Times.
Credit Union Times recently published my letter [Oct. 12, page 30] where I argued that interfering with any credit union’s internal governance is an ugly business and is not proper behavior for a trade association.