CRANSTON R.I. – Coastway CU, the fourth oldest credit union in the nation, told its members today it is proposing to convert to a mutual savings bank.
The state’s fourth largest credit union with $310 million in assets, said it would remain member/owned if the contemplated charter switch is approved.
"The unanimous recommendation of our board reflects that commitment," said Bill White president of the 88-year-old credit union, in the notice to members. "We are confident that a charter change will have a positiive impact on our members, along with the community as a whole."
Coastway was chartered in 1920 as the Telephone Workers’ CU in downtown Providence, then changed its name in 1989 to reflect its growing diversification. In 2000 it merged with Ocean State Community CU and the combined credit union kept the Coastway name.
As a bank, said White, the credit union would be subject to federal income taxes but would no longer have to pay the state’s credit union tax–one of the few in the nation.
The conversion is expected to be voted by members later this year.
