The board of directors of the $188 million Har-Co Federal Credit Union has asked for members' opinions about whether the CU should convert from a credit union to a mutual bank charter.
The Bel Air Maryland FCU cited several reasons it was contemplating the change, including the ability to issue stock to raise capital.
"For example, as a credit union, Har-Co cannot raise capital to support or expand its operation other than by retaining net earnings," the credit union wrote in an announcement on its website. "As a federal mutual savings bank, however, Har-Co could raise additional capital by changing from the mutual to the stock form and selling stock to members and the public, although a change to stock form is not part of the current Conversion Proposal."
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