Marcy Federal Credit Union in Marcy, N.Y., has applied to the Office of Thrift Supervision for a mutual savings bank charter, becoming the third credit union to do so in as many weeks.
Marcy Federal has $24 million of assets and less than 4,000 members. Its field of membership includes residents of Marcy and Rome and employees at the Central New York Psychiatric Center, the Marcy Correctional Facility, the Mid State Correctional Facility, the Mohawk Valley Psychiatric Center, and the local Wal-Mart Distribution Center.
"The only comment I have at this time is the fact that it rests with the OTS - it's not official yet - but when and if it is, then we'll take it to the membership," said Walt Kapinos, Marcy Federal's chief executive. He said the process could take anywhere from 30 to 60 days.
Marcy Credit Union posted a negative return on assets in the first quarter (minus 24%) and had capital of just over $4 million, with a 12-month share growth rate of 5.73% and loan growth rate 1.78% at March 31.
Marcy is not affiliated with the New York State Credit Union League, but the league's general counsel Michael Lanotte, said: "Our policy on conversions is in strict support of the members' rights. We fully support their right to exercise democratic control of their credit union. We only ask that the management and board present a fair and full view to the membership so that they can make an informed choice. It also references the fact that there not be a personal financial gain involved."
Some credit unions have come under fire for quickly going public after converting to thrifts, enriching top executives and directors. In April, DFCU Financial Credit Union in Dearborn, Mich., withdrew its plan to convert to a thrift after a prolonged battle with members who opposed it.
Mr. Kapinos said a public offering is not in Marcy's plans. "There is no stock involved in this. This has nothing to do with stock," he said.
Also seeking to convert are the $340 million-asset Lafayette Federal Credit Union in Kensington, Md., and the $180 million-asset Sunshine State Credit Union in Tallahassee, Fla.
Michael Hearne, Lafayette Federal's CEO, and Ramona Moret, Sunshine State's chief executive, have not responded to calls and e-mails for comment on their conversion applications.
