"Mutual thrifts are federally insured depository institutions most similar in structure to credit unions, because like credit unions, mutual thrifts (and Mutual Holding Companies) generally do not have corporate stock, are not for profit entities, and are owned by their depositors, or members, rather than shareholders". January 2001, US Department of the Treasury study comparing credit unions with other depository institutions.
Despite the credit union income tax advantage, it is an indisputable fact that a depository institution can do more for its members and its community, can offer more financial products and services, and can open more branches if it is has a bank charter.
Contrary to the myth that converting to a taxable institution would mean injury for members and the community, financial modeling shows that as a mutual bank, access to capital, increased branching, and increased loan activity provides a huge benefit to the community and members. The earnings from the enhanced lending ability – coupled with investment yields far superior than historically possible for credit unions – produces net earnings for members greater than what is now possible as a tax-exempt credit union.
A CU conversion to the mutual bank charter is a dynamic option for growing credit unions. Improve consumer awareness, gain access to capital, and expand powers. Serve your select employee groups plus get a "Community Charter" with the Mutual Thrift (bank) Charter. "Let your Charter follow your Mission". A powerful cooperative charter for serving your members! Learn why credit unions have converted to a mutual bank and why many others are considering the switch.