PORTLAND, Maine — Alan Theriault, founder of CU Financial Services, a consultancy that advises credit unions about converting to mutual bank charters said his firm has begun advising some CU clients to hold off applying for charter conversions right now.
"I have told several CU clients, after looking at their books and their balance sheets, that they should hold off on making applications to convert their charters-at least right now," Theriault said.
He explained that the current economic, banking and regulatory environment has made the FDIC extremely cautious about taking on new institutions as insurance clients-no matter whether those new institutions are bank startups or conversions from existing charters.
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"The FDIC doesn't want to take on an institution which might have been one of NCUA's problems," Theriault said.
The $190 million Beehive Credit Union announced on Jan. 20 that, even after it had gone through the entire process and held a member vote, it would remain a credit union. One of the reasons the CU cited for backing away was reluctance among federal banking regulators to approve its application.
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