ODESSA, Texas – First Basin CU told its members today it is suspending the vote to convert the $90 million credit union to a mutual savings bank, the fourth credit union to reverse course on the controversial charter switch.
In a letter to members, First Basin President Shem Culpepper said the board decided to suspend the conversion bid because of false statements being circulated about the safety of deposits if the conversion goes through.
In lieu of the conversion, the board has decided to consider paying some of the credit union’s net worth to members as a special dividend.
"In the end, our goal is to continue to operate First Basin as a safe and sound financial institution and to provide members with great products and services," said the letter.
In recent years other credit unions have also suspended their efforts to convert to mutual savings banks after broad opposition from members, including Lafayette FCU, DFCU Financial CU and Columbia CU.
Three other credit unions are currently in the process of converting to mutual savings banks. Members of Beehive CU met in a special meeting Wednesday to culminate a 90-day ballot and results are expected to be announced next week.
