Goodwin Procter client HarborOne Credit Union recently converted to HarborOne Bank becoming the first Massachusetts credit union to successfully convert into a bank and the first credit union nationally to convert under the current federal conversion regulations.
In the HarborOne transaction, several conflicts arose between federal and state requirements regarding the voting process which raised issues of first impression under state law concerning the voting eligibility of members of Massachusetts credit unions. All of the materials and procedures relating to the voting process were required to be preliminarily approved by the National Credit Union Administration (“NCUA”) and the Massachusetts Division of Banks (the “Division”) before the voting process could begin and materials could be sent to members.
The members of HarborOne Credit Union approved the conversion on March 18, 2013, with 62% of members voting in favor of the conversion. The Division and the NCUA then approved the vote in March and April, respectively. HarborOne subsequently obtained federal deposit insurance from the FDIC and arranged for its excess deposits to be insured by the Co-operative Central Bank. The conversion of HarborOne Credit Union to HarborOne Bank became effective on July 1, 2013.
HarborOne Bank, headquartered in Brockton, Mass., is the largest state-chartered co-operative bank in New England with $1.9 billion in assets and 14 branch locations.
The Goodwin team advising HarborOne was led by partner Bill Mayer.
To learn more about HarborOne’s conversion, please read the bank’s press release.