Members of Monterey Credit Union have voted overwhelmingly to become a mutual savings bank, step one of a planned two-step process to become a commercial savings bank.
Eighty percent of the members, who voted, favored becoming a mutual savings bank, pending regulatory approvals.
Twenty-one percent of the members voted.
Read the story.
Fair things happen for members when the NCUA cannot disrupt the voting process.
ReplyDeleteNext step is to go for a state, not federal, bank charter. Feds not interested, states are. FDIC knows this, more likely to work on a state filing.
80% of voting members approved.
ReplyDeleteWith no obstruction it's a victory for members and the cu and the staff.
Just like HarborOne.
We looked at our balance sheet "as if" a bank.
No problem with capital ratios and can also do a capital raise.
No field of membership issue when considering merger.
Taxes?
Ok, but eventually not a problem if we continue to grow and use bank rules to build income.
Boom.
A little mis-leading Ken. You note that eighty percent of the 19,000 members approved. Actually, the article notes that 21 percent voted, and 80 percent of those approved. So actually, 16 percent of the members approved.
ReplyDeleteThe early version of the article did not have information on the number of members that voted.
ReplyDeleteViewing all 100% of the membership, 4% voted no, 17% voted yes, and 79% did not vote, did not actively disapprove of being a bank instead of a credit union.
ReplyDeleteA 20-25% response is the norm, 60/40 for is very good, so 80/20 for is big.
Right. 79% couldnt care less. Its a loan and deposit not a religion.
Delete