X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

TALLAHASSEE, Fla. – In June of 2004, the members of the $170 million Sunshine State FCU voted to approve their credit union becoming a mutual bank. But in March 2005, the credit union backed off, withdrew its application and left it withdrawn – even though at the time of the withdrawal the credit union said it was going to continue with its plans. Neither federal regulators nor the credit union would say what exactly the problem was, but the federal regulators kept the credit union’s application for weeks and did not act on it, a sure sign that they might never approve it. Later inside sources at the credit union reported that a number of the credit union’s loans to so-called sub-prime borrowers, as well as actions taken by then CEO Mark LeCain, might have played a role in keeping the application from being approved. The failure of the credit union’s application drew attention to the reality that there may be few CEO jobs in the credit union industry more at risk than that of a CEO of a credit union that converts to a mutual bank charter. Out of the 21 credit unions which have either converted or almost finished the conversion process (as opposed to merging with mutual banks), 19% of CEOs left their positions, often not long after having completed the conversion.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.