OmniAmerican also Going the Sweepstakes Route

DALLAS – The $1.2 billion OmniAmerican Credit Union has also decided to offer its members prizes to get them to participate in an upcoming vote on whether or not the credit union should change its charter to that of a mutual thrift. In its package of disclosure materials sent to its members and dated April 12, the credit union revealed it would hold the special meeting to consider the charter change and take the final balloting on July 11. The credit union announced it will give away $20,000 in prizes, one grand prize of $5,000 and 15 other prizes of $1,000 each. The $1.4 million Community Credit Union, which used the same consulting firm in its charter application, CU Financial Services, is also offering its members a chance to win prizes with their charter change votes that total $20,000. Not surprisingly, much of the rest of OmniAmerican’s disclosure document reads word for word like Community’s disclosure document as well. One of the places where it differs is in the NCUA’s mandated part of the disclosure statement where the credit union revealed that the conversion will cost almost $904,000 total. The credit union broke out the costs as follows, regulatory application fees, $5,400; printing $115,000; postage, $117,000; mailing assembly, $45,000; inspector of elections, $26,000; membership awareness campaign, $124,000; consulting and professional fees and expenses, $170,000; legal feels and expenses $200,000; special meeting location, $4,700; sign and stationary changes, $62,000 and $16,000 and operating fee costs. The credit union also said the conversion will cost it nothing in staff time and listed the $20,000 that it will give away in prizes. Significantly, the $16,000 that the credit union listed for “operating fee costs” represented the increased cost of examination ($201,000 versus $217,000) that it expects to experience as a mutual thrift. Community, by contrast, expected to save more than $100,000 because of the charter change.