The $1.1 billion Lake Michigan Credit Union (LMCU) in Grand Rapids, MI, will remain a credit union after less than two-thirds of voting members cast ballots in favor of a conversion to a mutual savings institution.
Members cast 35,322 valid votes and 60 percent were in favor of a conversion to a mutual savings institution. Michigan requires a two-thirds approval for a conversion, and LMCU fell short by 2,400 votes.
LMCU’s conversion would have been the largest credit union to switch to a bank to date. The proposed conversion has not only garnered a lot of media attention because of the credit union’s size, but also due to an unusual contest where all voting members would be eligible for prizes. The grand prize was a three-year lease on either a 2005 Cadillac CTS or SRX and five additional cash prizes of $1,000 would also be awarded in a lottery.
For more details, refer to postings on LMCU’s website: http://www.lmcu.org/.