No change at First Basin

Less than three weeks after suspending a conversion vote, First Basin Credit Union has officially pulled the plug on attempts to become a savings bank.

“We’ll be marginally successful,” First Basin Chief Executive Officer Shem Culpepper said of his credit un-ion’s future. “We will not be able to succeed in the manner that we should.”

Culpepper blamed “misinformation” from Save First Basin, an anti-conversion group for the demise of the change.

In the wake of the announcement, Save First Basin is now calling for a turnover in the credit union’s board.

Save First Basin co-founder Letty Moreno said her group would have a committee meeting next week to determine who is qualified to run for board positions. She knows five people interested in running, but said she doesn’t want to herself.

“We feel that they are not representing the members’ best interest,” she said of the present board. “We want to get some people that are going to think about the benefit of the many, and not the benefit of a few people.”

But Culpepper said First Basin has undergone unprecedented growth under current leadership. It has increased its net worth by $5.6 billion over the past four years, doubling its value.

Culpepper said regulations prevented him from giving figures like that while the credit union was seeking to become a bank, but, now, he looks forward to sharing such statistics.

“I’m not sure why anybody would be interested in replacing a board that has had such extraordinary success, unless there is an agenda in place,” he said.

That agenda involves bitter former employees, Culpepper said.

Moreno, a former vice president at First Basin, said he’s referring to her. But she disputes the idea that she is out for revenge.

“I think that’s the only thing at this point that Mr. Culpepper can use,” she said. “He cannot dispute our facts, so the only thing he can do is attack me personally.”

Moreno said she left First Basin on her own accord after disagreements with Culpepper’s management style.

“I did not go out and decide I’m going to do this to mess his world up,” she said. “Others contacted me who were in positions where they could not come out and speak.”

Moreno said she would like to see a new board because she fears more attempts to try to become a bank.

Culpepper said that isn’t in the works.

“We have no intention at this time to do anything other than to carry on business as a credit union,” he said.

For now, First Basin will have to continue with limited amounts of business loans it can hand out and limited expansion possibilities, Culpepper said.

Culpepper also disputes a claim by Moreno in a news release that board members could receive “hundreds of thousands of dollars of insider enrichment, at the members expense” had First Basin converted to a bank.

First, in order for board members to receive payments, a second conversion, to a stock-issuing bank would have been required, he said. And, even then, outside investors would provide the capital, not customers.

While Save First Basin members say a board meeting is required to take place this month, Culpepper said he hasn’t had time to set a date.

“This (conversion) takes me hours every day to deal with,” he said.

While Culpepper sees rough waters ahead, Moreno, a First Basin member, is basking in the decision not to convert.

“We’re thrilled,” she said. “We’re looking for ways to make the credit union better for its members.”