Credit union frustration over NCUA assessments coupled with the inability to raise capital and expand business lending to compete with banks apparently helped spur HarborOne CU's proposal to convert to a bank, industry analysts said Wednesday.
Just how many other large or mid-size CUs might soon look seriously at following the lead of the $1.8 billion HarborOne of Massachusetts was a question mark. Conversion consultant Alan Theriault of Portland, Maine said he knows of at least one billion-dollar CU ready to make the switch and a handful of $200-$400 million CUs in the same boat.
"Margins have been pretty thin for awhile now and credit unions see no way to build capital and they don't like paying those assessments while seeing so much uncertainty ahead," maintained Theriault.
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