Wednesday, February 16, 2011

Har-co FCU Exploring Mutual Savings Bank Charter

Har-co Federal Credit Union, Bel Air, Maryland, has announced its intention to begin exploring the possibility of switching from a federal credit union to a FDIC-insured federal mutual savings bank charter.

Under a federal mutual savings bank charter, Har-co would be open to all citizens, but would still be mutually owned by its membership, and with no stockholders. Currently, the $188 million credit union is limited to serving the Harford County education community, students and their families.

The Board believes that the change in charter would give Har-co additional business flexibility to meet the current and future needs of its members. The Board of Directors also believes that the tax impact should be more than offset by the enhanced earnings capacity under the federal mutual savings bank charter.

On March 16, 2011, after the Board’s consideration of the written comments received from members, the Board of Directors will decide on whether to proceed with its conversion plan.

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