Utah Credit Union Says it Wants to Become a Bank

SALT LAKE CITY — (March 5, 2007) - Citing state restrictions on its ability to branch and to expand, the board of directors of the $177 Beehive Credit Union has voted to try and convert to a mutual bank, a spokesman for the credit union has confirmed.

The credit union was formed in 1954 and has nearly 22,000 members. It also has seven branches in addition to its headquarters branch.

According to an article in the Salt Lake Tribune, which the credit union confirmed, the credit union has been chafing under restrictions to its powers from a 1999 state law that restricts state chartered credit unions’ ability to grow.

According to NCUA, the credit union had a return of average assets of 1.17 as of the end of 2006, a number significantly higher than 0.77 peer average. It has also significantly outperformed peers in growth in net worth, market share, loans and assets. (CU Times)