Glendale Area Schools FCU Converts to State Charter and Private Share Insurance
July 8, 2016 – American Share Insurance, the nation’s only alternative to federal share insurance, is pleased to report the recent successful conversion of a California federally chartered credit union to a state charter and private share insurance.
After 79 years as a federally chartered credit union, Glendale Area Schools Federal Credit Union chose to re-examine the value and cost of a federal charter and the merits of the business partnership mindset of private share insurance. After careful consideration, in 2015, Glendale began the dual conversion process, and after a very successful vote of its members, effective June 1, 2016, the credit union became the second federal credit union in a year to successfully become state-chartered and privately insured.
“There are numerous advantages to becoming a state-charter in California, but the best is having the right to be privately insured by American Share,” noted Glendale’s long-time CEO, Stuart Perlitsh. “The fund’s broader coverage and business-partner philosophy meshed well with the current needs and direction of our credit union. American Share is an insurer, not a regulator – that difference is often clouded in the federally insured, state-chartered space,” Perlitsh added.
American Share’s President and CEO, Dennis Adams, reports that there is an increasing interest in private share insurance stemming from federally charted credit unions today. “Our current marketing message of ‘Mind Your Own Business’ is starting to resonate with both state and federal charters. For example, Latah Federal Credit Union in Idaho is currently finalizing its share insurance and charter conversion following its membership vote of approval, while another federally chartered Texas credit union is queuing up to start its vote later this summer,” said Adams. “This will be the second Texas-domiciled federally chartered credit union to seek a change in charter and insurance over the past 15 months,” Adams noted.
“The value of the state charter and private share insurance are being closely re-examined around the country,” Adams continued. “With our 1.70% equity ratio, solid and certified loss reserves and our strong membership commitment, we are well positioned to serve credit unions in some of the nation’s largest credit union markets.”
American Share is a member-owned share guaranty corporation, licensed by the Ohio Department of Insurance and dual-regulated by the Ohio Departments of Insurance and Commerce. The corporation provides up to $250,000 of share insurance on each and every account of an individual member in insured member credit unions. For more information, call 1.800.521.6342, Ext. 102, or contact Toby Mattson at email@example.com, or Charlie Roberts at firstname.lastname@example.org.