BROCKTON, Mass. (3/6/13)--Members of HarborOne CU in Brockton, Mass., will meet Monday at 5 p.m. EDT to vote on whether to convert to a bank.
The conversion, if approved, would take effect by the end of 2013 (News Now May 8).
The $1.9 billion asset credit union announced in March 2012 it planned to pursue conversion. It said that converting to a bank charter would allow it to expand its customer base into Boston; increase lending, especially with business loans; and raise more capital, such as through a stock sale. It also said it cannot open a branch in Boston because it is restricted to serving four counties in Southeastern Massachusetts.
The National Credit Union Administration has said that HarborOne could expand its geographic boundaries by petitioning the state. HarborOne is not near its member business lending cap and it could sell stock to raise capital, NCUA also said (News Now May 8).
A credit union charter is the best option for credit union members and any decision on converting should be in the members' best interest, the Credit Union National Association and the Massachusetts Credit Union League have said (News Now Feb. 17).