Har-Co Credit Union in Bel Air, Md., is taking another shot at converting to a mutual thrift.

The $189 million-asset credit union has asked approval from state and federal regulators to convert to a state-chartered mutual savings bank, according to legal documents. If approved, the institution would change its name to Har-Co Community Bank.

The credit union wants to convert because a bank charter "will enable Har-Co to increase membership and economies of scale," according to its application document.

"Har-Co would be allowed to offer loan and deposit services to anyone, something it cannot currently do under its credit union charter," the credit union said. Har-Co plans to continue to emphasize residential mortgage lending and to add new lending products.

Har-Co first attempted to convert to a bank in 2011, and had received approval from its membership for the plan. Har-Co did not indicate in its application documents why the earlier attempt was not completed.

Har-Co was founded in 1955 and has three locations in Bel Air, Abingdon and Aberdeen, Md. Har-Co stands for Harford County.

Ober, Kaler, Grimes & Shriver is legal counsel to Har-Co on the conversion. Frank Bonaventure, Har-Co's attorney, could not be reached for comment.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.