SUPERIOR REQUESTING CONVERSION TO STATE CHARTER
Membership Vote Being Connducted
Have you ever asked yourself why there isn’t a Superior branch at Indian Lake? Sidney? Findlay? The reason is because Superior locations are currently restricted to the counties we serve in our federally-regulated field of membership. This means that even though we may (and do) have many members who reside outside of Allen, Auglaize, Hardin, Mercer, Putnam, and Van Wert counties, we are unable to expand into their home market. One way to ease this restriction is by converting from a federal to a state charter.
While charter conversion may sound like a big deal, it is actually quite common. In fact, Superior is the largest credit union in Ohio that is still federally chartered. To continue to grow and serve our members, it is imperative that the credit union be able to expand both inside and outside of its current field of membership. And despite dropping the “Federal” from our name, there will be absolutely no change to your current share insurance. All deposits will remain federally insured to $250,000.
Ballots were mailed to all members the week of August 17, and can be returned by mail or dropped off at your local branch office. Please take the time to respond and return your ballot in the envelope provided. The audit firm GBQ and Associates will handle the collection and counting of votes.
A special membership meeting to discuss the change from a federal charter to a state charter will be held September 3 at 5:00 p.m. The meeting will be held at Superior’s main office at 4230 Elida Rd., Lima, Ohio.
The Board and management of Superior encourage you to vote on the proposed charter change.
SFCU has outgrown the field of membership restrictions that a federal charter mandates. Under a state charter SFCU can grow and expand its services to more areas. SFCU is asking the State of Ohio to allow us to have a sixteen county field of membership, which would increase our field of membership by 10 counties and about 550,000 people.
The conversion should occur prior to the end of this year. SFCU is hoping for a conversion date prior to November 1, 2015; however, we are relying on expedience from two separate agencies. The possibility of some hiccups or delays does exist.
3) SHARE INSURANCE?
When the conversion takes place, SFCU will not be changing its share insurance provider. SFCU’s accounts will still be federally insured up to the $250,000 limit. Nothing about insurance will be changing.
SFCU will be regulated by the Ohio Department of Commerce, Division of Financial Institutions (ODFI) in Columbus, Ohio rather than the NCUA in Washington, D.C. Several members of the SFCU management team have met with the ODFI staff and they are very easy to work with. The ODFI has been very helpful through the process. In the future, SFCU will be much closer to its regulators as well, and can more easily meet with the Agency or comment on regulations.
5) WHAT OTHER CHANGES?
For the most part, there will not be any significant changes in the way SFCU operates. These are the changes that will occur due to the conversion:
6) WHAT’S NEXT?
SFCU has obtained approval to proceed from the NCUA (National Credit Union Administration). All Notice of Meeting and Ballots have been sent out to the members. Members should all vote by September 3, 2015. Members can attend the meeting and cast their vote at that time if they have questions, but no votes will be collected after that time. To continue with a State Charter, a majority of the member that vote must approve the conversion. Once a vote is certified and approval is given, the ODFI will approve our request and we will be incorporated under Ohio laws, thereby terminating our federal charter.
7) HOW IS THE VOTE CONDUCTED?
SFCU has sent out a Notice that explains the charter conversion and how to vote for or against it. Also included with the mailing was a ballot for voting and a prepaid envelope addressed to an accounting firm in Columbus. The accounting firm will be conducting the vote and certifying it.
Members may still bring in their ballots to the branches. Each branch can collect the sealed envelope containing a member’s ballot. It is very important that each ballot be sealed by the member in an envelope prior to being handed to an SFCU staff member. The Notice with instructions for voting will be displayed in each branch and each branch will be stocked with ballots and envelopes for members that want to vote while they are there.