BURBANK, Calif. – 2002 seems to be starting for California much the same way that 2001 ended – with a federal credit union applying to convert to a state charter.

The FCU making news this time – Lockheed FCU with $1.2 billion in assets – is the third billion-dollar FCU in California to convert to a state charter in the past two years.

The others were Star One, Sunnyvale, and North Island CU, Chula Vista.

As part of its application to convert to a state charter, Lockheed also filed for a community charter to serve a large number of Southern California communities Lockheed's President/CEO David Styler said the credit union already has a "significant presence" in.

Styler said Lockheed's decision to convert to a state charter was prompted by its need to grow. Even though the credit union counts 400 SEG groups among its 98,000 members, he said, "All institutions have to grow, whether they're $1 million or $1 billion in assets. We're looking for long-term, continuous growth.

"To do this, we had to explore all our options, and the California state charter gives us the flexibility we need," said Styler.

Styler emphasized that the CU's conversion decision "in no way is a reflection on NAFCU." He said Lockheed has worked closely with the association to enhance the federal charter "and to lobby those in Congress who can make that happen."

Lockheed's former president Ron Keeler was also a former NAFCU chairman.

NAFCU spokesman John Zimmerman said, "It does not make a difference that Ron Keeler was a former chair of NAFCU, it is the board of directors of Lockheed FCU that decides what is best for the credit union and its members. Each credit union that has in fact changed charters has had specific reasons, and we continue to closely monitor this situation."

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.