Sunmark FCU plans charter conversion
Sunmark Federal Credit Union in Latham, N.Y., has elected to move from a federal charter to a state charter, citing the need for greater regulatory flexibility.
The $678 million-asset institution is the latest in a slew of credit unions to convert to a state charter in recent years, as states across the country move to update their respective credit union acts in order to permit CUs additional powers. Washington and Kansas have both updated their credit union statutes this year.
Along with the charter conversion, Sunmark plans to expand membership eligibility to consumers who live, work, worship or attend school in seven additional counties, giving it a reach across 12 counties overall, along with a variety of select employee groups and association members.
“We want to change our charter to be able to offer beneficial and affordable financial cooperative services to more individuals and businesses in New York and other states where we have select-employer group relationships,” the credit union said in an FAQ on its website. “Changing our charter solidifies our commitment to serving our members and potential members for the foreseeable future. The opportunity provides long-term financial well-being and security to Sunmark, provides current and potential members increased access to our products and services and helps reduce expenses over time by creating efficiencies through economies of scale.”
Sunmark FCU reported net income of more than $1.3 million during the first quarter, the most recent data available, nearly double the $690,000 it pulled in a year earlier. That growth was driven by a 20% lift in interest income and a nearly 40% increase in noninterest income.