Election Results In
According to Beehive's vote count, 36% of the members voted, breaking down 53/47 for the conversion proposal. Thus, about 82% of the members are either opposed or did not vote. There is not a mandate here for radical change, particularly in light of possible legislation for credit union regulatory relief.
Protect our good rates, low fees, and
member-ownership!
Beehive Credit Union has proposed converting our credit union into a bank. We believe that this conversion is not in the interests of the members. We are concerned that:
- The Board of Directors and Executives may have a conflict of interest in recommending this conversion.
- Most studies show that we will likely be charged worse rates and fees because Beehive will have to pay 39% federal and state income taxes as a bank that it does not pay now.
- We could lose our $16 million of member-ownership without fair compensation.
- We will lose our democratic one-member-one-vote rights.
- Many of Beehive's reasons about why we should convert Beehive to a bank may be misleading.
| The American Banker Questions the Future of the Mutual Bank Industry. |
Is it really a good idea to convert to a mutual bank?
Because of the housing crisis, many of the largest mutual banks (also called thrifts) are going under or being bought out, calling into question the future of mutual savings banks. According to the American Banker, "Thrift earnings are at a six-year low, and nine of the top 25 federal ones — holding 37.5% of thrift assets — have reported significant problems related to the housing crisis." Read the article here.
In 1984, there were about 2,200 mutual savings banks in the United States. In 2007 primarily as a result of failures, conversions to stock banks and mergers, there are fewer than 350 mutual savings banks. Do we really want to convert to a mutual bank? |
Response to CEO's Urging to Vote for Conversion
On January 1, 2008, Beehive Credit Union members rang in the New Year with a letter from Beehive’s CEO urging members to vote for conversion based on two reasons. Here are his reasons and some of the facts that respond to those claims: Click here to read
Learn More About Credit Union-to-Bank ConversionYou can learn more about what converting to a bank means for member-owners like us at the website of the National Center for Member Trust, a non-profit organization founded to support member-owners of credit union trying to convert to banks.
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What are people saying about the conversion proposition?
View all comments on the Comment page. (Comments posted on this public forum do not necessarily reflect the views of Beehive Members Protecting Member Interests.)
Posted by Lori, on 2/15/2008 2:49:21 PM.
"Public Service Message: For those of you that are interested, Cyprus Credit Union is more than happy to take those Beehive members unsatisfied with the banking world. Karen Seo is the business account rep and I found Shauna at their Union Park Branch very helpful. Cyprus is Federally Chartered with 14 local branches and is a member of the Credit Union co-op which gives you access to your account across the country. I opened 5 accounts today and plan to move the other 13 within the week.Thanks to all who participated on this web site."
Read more comments here.
Beehive states that if the Members' advance payment exceeds the actual cost of delivery, it will not refund the excess to the Members.
Read more about this in NCUA's Response Letter, in page 22 section C, regarding the Member to Member Communication Letter submitted to Beehive by Beehive Members Protecting Member Interests.
National Credit Union Administration Website: http://www.NCUA.gov.
Note:
The information on this site is a result of dedicated research. Our purpose is to inform not to harm. If you find a discrepancy, please forward your concerns and the proper evidence backing your claim to BeehiveCUMembers@gmail.com.
Thank you,
Beehive Members Protecting Member Interests
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Beehive Research may be Flawed
Beehive does NOT need to convert.
Beehive's leadership may give the impression that Beehive must convert or die. But take a look at Beehive's profits--it's just not true.
| Year | Net Profits |
Dec. 2003 |
$618,780.00 |
Dec. 2004 |
$465,900.00 |
Dec. 2005 |
$1,421,518.00 |
Dec. 2006 |
$1,934,718.00 |
Sept. 2007* |
$1,062,491.00 |
* Latest information available on NCUA.gov
So, the question is, “Do we need a charter change?”
To see Beehive's financial statements yourself, go to www.NCUA.gov, click "Credit Union Data," click "Find a Credit Union," enter charter "61000". See for Yourself AND VOTE!
"What Can I do?"
- Vote against the conversion! As a member of the credit union, the decision is up to you. You will receive a ballot in early January. Please vote NO to protect our good rates and member ownership.
- Tell your friends and family who may also be Beehive Credit Union members.
- You can:
“Credit Union, Bank… What’s the difference?”
- Credit Unions are non-profits whose purpose is to make money for their members.
- Stock banks are for-profits whose purpose is to make money off of their customers.
- Mutual Banks are a necessary first step towards becoming a stock bank.
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