TAMPA — Florida's largest credit union, Suncoast Schools FCU, will convert from a federal to a state charter early next year.
Members of the $5.5 billion credit union voted Thursday and results were finalized Friday, approving the charter change.
"We will go through the conversion sometime in the first of the year, we hope," said CEO Tom Dorety. "It depends on the regulators, but we have been working well together on this so I think it will be approved."
The shift allows Suncoast to move from a multi-SEG-based field of membership to a community charter, something Dorety said the credit union was considering more than ten years ago.
"We have been looking at changing our charter for a number of years. We were pretty serious, waited a bit, and then the Great Recession got in the way."
Under its current federal charter, credit union membership is restricted to select employee groups, including public and private school employees and students, among others.
Dorety said the credit union spent more than four years fighting through an economy that was particularly tough on residents living in the areas Suncoast serves. "We spent four to five years dealing with coming out of that mess," he said.
A perennial high-performing credit union prior to the recession, growing assets by about 15% every year, in 2008 Suncoast began a three year streak of losses totaling more than $183 million.
Today Suncoast's situation has turned around, with the CU posting $21.4 million in net income in 2011 after assessments, $70 million in 2012, and $51 million through the third quarter of this year.
Dorety said now that Suncoast financials are once again strong, the credit union is able to focus on expansion, and a community charter is the best way that will happen. "That is the only reason we are converting, to secure a community charter."
Dorety explained a community charter "streamlines" joining the credit union in the eyes of Florida residents.
"Right now our field of membership takes up about 100 pages in our bylaws," said Dorety, who explained the institution will change its name to Suncoast CU. "We become community chartered and there is no confusion in the eyes of potential members as to whether they can join. We can send a very simple message to our communities, which will further entrench us in this state."
Dorety added that Suncoast is not considering expanding outside of Florida.
