Why did SunState Federal Credit Union apply for a state charter?

The Board of Directors and management have given careful consideration to the advantages and disadvantages of converting to a state chartered credit union and believe it is in the best interest of SunState Federal Credit Union and our membership for the following reasons:

• The credit union will be governed by the Florida Office of Financial Regulations. Regulators are located in Tallahassee, and the laws and regulations are specifically designed to address the needs of Florida residents. Emphasizing local rather than national focus on issues which are in the best interest of our credit union and our members.
• The credit union will have greater flexibility to expand service beyond the current markets we serve today, positioning the credit union for the future. The current federal charter limits our ability to grow into new counties.
• Measured growth will allow us to continue to offer competitive rates on savings and loan products, as well as to continue to improve the technology and services we offer, so that we can remain competitive in the marketplace and provide our membership with exceptional service.

 What is the difference between a state and federally chartered credit union?

Federally chartered credit unions are regulated by the National Credit Union Administration (NCUA). Under a federal charter, growth is constrained, limiting membership expansion.

Florida state chartered credit unions are regulated by the Florida Office of Financial Regulations, which regulates all Florida state chartered credit unions and other financial institutions for compliance with the laws and regulations of the State of Florida. Additionally, state chartered credit unions must comply with rules and regulations from certain federal agencies. Credit unions that are state chartered have more flexibility to expand and grow.

Do members have to approve the change from federal to a state charter?

Yes. A notice and ballot will be sent to all eligible members. SunState Federal Credit Union will hold a meeting of the membership to vote on the charter change at our Main Office Branch located at 405 SE 2^nd Place, Gainesville, FL  32601 at 10:00 am December 9, 2020.  Members may also vote using the ballot and postage-paid envelope sent prior to the meeting or at any branch location.  Ballots must be received by the date and time of the meeting.

When can I expect the charter conversion to happen?

The conversion date will be shortly after the special membership meeting and vote. The proposed date is January 1, 2021.

Is anything else changing?

In converting from a federal to a state chartered credit union you will see very few, if any, changes related to the new charter.  Your deposits will still be federally insured by the NCUA up to $250,000.

Membership will be expanded to the following Florida Counties: Alachua, Bradford, Citrus, Clay, Columbia, Dixie, Gilchrist, Hamilton, Lafayette, Levy, Marion, Putnam, St. Johns, Suwannee, or Union.

Does this impact federal insurance coverage?

No. Credit Union deposits will continue to be federally insured by the NCUA, meaning you have up to $250,000 in protection for an individual account. The NCUA provides separate insurance coverage for deposits held in different ownership categories such as individual accounts, joint tenancy accounts, Individual Retirement Accounts (IRAs), and trust accounts. This insurance is similar to the banks’ FDIC insurance.

What are the financial impacts of the charter change?

Management is confident that the income and growth opportunities associated with the change far outweigh any costs. Specific details are included in the notice sent to eligible members.

Will there be any changes to my accounts, loans or to the services I use?

This will be a seamless transition for our members. Account numbers and passwords will not change, and our existing branch network and business hours will remain the same. It will be business as usual for all members.

Will there be any change in SunState’s rates and fees?

Deposit and loan rates and the current fee structure will not be impacted by the charter change.

Will the Credit Union grow so large that I will not receive the same service I expect?

Definitely not. The Credit Union has always had controlled growth to ensure members are receiving the same level of service they are currently receiving.  In fact, as we grow we plan to provide even better service to our membership.

Will any branches and ATMs close or relocate?

No branches will close as a result of this change, but a branch or ATM may occasionally relocate to better serve members in a particular market. Financial institutions routinely close or relocate branches over a period of time as the population shifts. The Credit Union has always limited branch and ATM relocations unless absolutely necessary.