Massachusetts regulators have approved First Priority Credit Union's plan to become the state's first credit union to convert to a mutual savings bank under a new law.
The National Credit Union Administration has already approved the Boston credit union's conversion application and certified the members' vote.
Now the $103 million-asset First Priority, which was known until last year as Postal Community Credit Union, is waiting for the Office of Thrift Supervision to approve its application for a federal thrift charter.
First Priority had tried to convert to a thrift earlier this decade. That effort failed, because there was no legislation at that time that permitted state-chartered credit unions to become thrifts. Enabling legislation was passed in 2006.
Another state-chartered credit union, the $124 million-asset Community Credit Union of Lynn, Mass., also is in the process of converting to a mutual savings bank and recently sent out member disclosures. Another credit union, Northeast Community Credit Union in Haverhill, is in the process of merging into a mutual savings bank.
