MONTEREY, Calif.–An application by Monterey Credit Union to become a bank has been withdrawn.
In mid-November the $220-million credit union withdrew its application to become a state-chartered mutual savings association to be called Community Savings Bank of Monterey, according to the Silicon Valley Business Journal. In 2014 members voted in favor of making the charter change.
The Silicon Valley Business Journal reported that the credit union’s lawyer, Michael Sadow of Silver Freedman Taff & Tiernan, and CEO, J. Stewart Fuller did not respond to requests for interviews.
In earlier interviews, Monterey CU said it was seeking to convert in order to expand business lending and to get out from under the 12.25% cap on business lending for federally insured credit unions. But MCU has since converted to private deposit insurance from Ohio-based American Share Insurance, and is no longer subject to such a cap.
State regulators with California’s Department of Business Oversight had earlier indicated that there would be challenges with the conversion, since it was the first time a state-chartered credit union was seeking to convert to a state-chartered bank.