The $187 million HAR-CO Maryland Federal Credit Union appearspoised to become a mutual bank by April 1.

In a website posting, the suburban Baltimore CU forecast that its“member-approved conversion to a bank charter will be complete bythe end of the first quarter” noting that if it is completed theexisting director slate would be dissolved.

“The board of directors for the new bank entity has already beenappointed for the first year of operation and it would essentiallyhave the same people,” said a newsletter notifying the members ofHAR-CO's annual meeting slated for March 21 at its headquarters inBel Air, Md.

For the time being, the 20,000-member HAR-CO said in itsstatement that it is operating under its current federal CUcharter.

“The members of HAR-CO approved the charter change proposal withover 58% of voting members casting ballots in favor of theproposal, and with over 5,000 of our members exercising their rightto vote on the proposal,” the statement said.

In a related development, the Maryland/DC Credit UnionAssociation confirmed that HAR-CO formally resigned its league/CUNAmembership last June.

“It's always a concern when we witness a disaffiliation likeHAR-CO but that is part of the democratic process in thismovement,” said John Bratsakis, president/CEO of the MDDCCUA.

“It is equally important,” he stressed, “that full disclosure bemade to members so they fully understand their rights and theintent of management be evaluated.”

The former Illinois CU executive who took over as league headlast October maintained that despite the HAR-CO switch andtwo other conversion bids under way by large CUs in Massachusetts and California, any trend toward wholesaleconversions remains illusory.

“I've heard this talk the last 20 years about this large bubblecoming at us but in my view it still remains just a handful ofcredit unions in pursuit,” said Bratsakis. On the contrary, hesaid, more CUs are seeking ways to take advantage of existingbenefits of the CU charter and inquiring of leagues like his tomake use of them.

On that score, Bratsakis said his league is now enjoying fivere-affiliations in 2012. “These include credit unions which rangein size all the way up to $500 million,” saidBratsakis, a former senior vice president of the $1.5 billionBaxter CU near Chicago and CEO of the $181 million Community TrustCU of Gurnee, Ill.

Regarding HAR-CO, Baltimore media noted that its switch to amutual bank charter would be the first in Maryland since 1998.That's when Owings Mills' BUCS FCU became BUCS Bank,subsequently purchased by Susquehanna Bank in 2007, saidnews accounts.