Over 13,000 of the 70,000 members of the $1.6 billion Technology Credit Union have voted to retain their credit unioncharter and not to convert their institution to a mutual bank,according to an announcement from the credit union.

Technology announced that roughly 17,500 members participated inthe balloting, with 77% casting ballots against it and 23% orroughly 4,000 voting in favor.

“Our members have voted and overwhelmingly indicated theirpreference to remain a credit union,” said Barbara Kamm, CEO of thecredit union, in a statement announcing the results. “We respectthis decision and appreciate that so many of our members weighed inon this important vote. Providing the highest level of service formembers will continue to be our top priority – and we will do sounder our credit union charter.”

In the same statement, board Chairman Mical Brenzel said, “Theresponsibility of the board of directors and management is toconsider all strategic alternatives that may be in the bestinterest of Tech CU and our membership as a whole. Our board beganstudying some evolving trends in the credit union industry as farback as 2008.

“We noted the tremendous increase in share insurance assessmentswhich credit unions must pay into the National Credit UnionAdministration's share insurance fund and the continued reluctanceof Congress to expand credit union lending powers. We also studiedthe FDIC's insurance fund, which insures mutual savings banks, anddetermined that the performance-based assessment system of the FDICwould charge lower assessments for a high-performing financialinstitution such as Tech CU, helping to preserve our members'capital.”

This last point appears to run directly counter to an analysisof the impact of the two insurance premiums conducted by CUNA ChiefEconomist Bill Hampel in October 2011.

Kamm also noted the frustration many members faced with thecredit union's proposal to change charters and appeared to blameNCUA regulations for not being able to explain the credit union'sreasons for conversion more clearly.

“Members at the special meeting voiced frustration, saying wedid not make a compelling case for charter change. We, too, arefrustrated that we were unable to communicate our views effectivelyand in the open manner we would have preferred because of theregulatory process and the related rules that govern how creditunions can communicate about charter change with their members,”Kamm said.

“We recognize our members' strong commitment to the credit unionindustry, and we dedicate ourselves to working within the creditunion charter to ensure that Tech CU continues to perform safely,securely, and successfully in the future,” added Brenzel. “Ourmembers have spoken, and we look forward to the future as we remaina very successful credit union.”

Neither members of the credit union nor executives with thecredit union itself have yet become available for comment.

Although it seems clear that Technology Credit Union will remaina credit union, it is unclear that the matter will end with thecredit union announcement.

Technology's attempt to change its charter ushered in somefirsts in the charter change process. This was the first time thatmembers utilized an NCUA regulation that required the credit unionfacilitate their communication with other members about theconversion, and the first time this was done also marked the firsttime such email contained tracking software added by the credit union.

The NCUA has not yet indicated whether this practice conformswith its regulations and the agency may still want to amend itsregulations further to address that. In addition, litigation stemming in part from the addition of that trackingsoftware has also not yet been resolved.

Technology first announced it was considering a charter changein October of last year.