Beehive CU Announces Conversion Plan

SALT LAKE CITY–The $177-million Beehive Credit Union has become the latest to announce it was “considering a plan of conversion” to a federal mutual savings bank. Members were informed of the plan March 3 at the credit union’s annual meeting. Beehive Credit Union issued a statement to the Credit Union Journal in which it said the charter conversion plan “is prompted by current state law restricting the ability of Beehive to expand membership and branch locations.” Beehive’s board reportedly told members legislation Utah passed in 1999 has restricted its operations to the point of “unacceptable consequences” for the credit union. That has included a restriction on branches within the state. Ryan Laws, chairman of the 21,000-member CU’s board, said state laws “are preventing us from filling out our product line and providing the convenience of branches our members are calling for. This can only be accomplished through a change in our organization,” he said. The credit union’s statement did not indicate whether it has considered moving to a federal charter, as other CUs in the state have done. A vote of the membership will be scheduled for “later this year.”