Tech CU Members Vote to Remain a Credit Union
FOR IMMEDIATE RELEASE
San Jose, CA (September 20, 2012) — Technology Credit Union (Tech CU) today announced that Tech CU will continue to operate as a credit union. Barbara Kamm, President and CEO of Tech CU, stated, “Our members have voted and overwhelmingly indicated their preference to remain a credit union. We respect this decision and appreciate that so many of our members weighed in on this important vote. Providing the highest level of service for members will continue to be our top priority – and we will do so under our credit union charter.”
“The responsibility of the Board of Directors and management is to consider all strategic alternatives that may be in the best interest of Tech CU and our membership as a whole,” stated Mical Brenzel, Chairman of the Board of Tech CU. “Our Board began studying some evolving trends in the credit union industry as far back as 2008. We noted the tremendous increase in share insurance assessments which credit unions must pay into the National Credit Union Administration’s share insurance fund and the continued reluctance of Congress to expand credit union lending powers. We also studied the FDIC’s insurance fund, which insures mutual savings banks, and determined that the performance-based assessment system of the FDIC would charge lower assessments for a high-performing financial institution such as Tech CU, helping to preserve our members’ capital.”
“Members at the special meeting voiced frustration, saying we did not make a compelling case for charter change. We, too, are frustrated that we were unable to communicate our views effectively and in the open manner we would have preferred because of the regulatory process and the related rules that govern how credit unions can communicate about charter change with their members,” said Kamm.
“We recognize our members’ strong commitment to the credit union industry, and we dedicate ourselves to working within the credit union charter to ensure that Tech CU continues to perform safely, securely, and successfully in the future,” added Brenzel. “Our members have spoken, and we look forward to the future as we remain a very successful credit union.”
Approximately 25% of eligible members voted, with nearly 77% of those voting against the conversion to a mutual savings institution.
ABOUT TECHNOLOGY CREDIT UNION
Founded in 1960 by the employees of Fairchild Camera and Instrument Semiconductor Division, Technology Credit Union has served the high tech workforce in Silicon Valley for 50 years. Today, Tech CU has extended its membership benefits to small businesses and individuals who live and work in the greater Bay Area. The credit union is recognized as one of the best-managed and strongest financial institutions in the country. Tech CU's 69,000 members have access to 70,000 surcharge-free ATMs nationwide, online and mobile banking, 10 full-service branches in the Bay Area, and comprehensive wealth management and small business services. To learn more, visit www.techcu.com