Alliance Federal Credit Union Changes Charter and Share Insurance
American Share Insurance, the nation’s only alternative to federal share insurance, is pleased to announce the recent conversion of the Texas-based, $245 million Alliance Federal Credit Union from a federal charter to a state charter, and from federal share insurance to private share insurance from American Share. This is the fourth in a line of credit unions converting to state charters and private share insurance nationally, and the third Texas-based credit union to join American Share, in the last 18 months.
According to Scott Rose, President and CEO of Alliance FCU, one of the main reasons he and his board of directors chose to convert to American Share was the simple fact that the role of the regulator and insurer needs to be differentiated, and this was not the case as a federal charter. Rose also stated, “I personally like knowing our insurer, from the examiners all the way up to the CEO.”
Another key factor in their decision to move to a state charter, and to partner with American Share, was that they wanted to be regulated by local government officials that better understand the needs of Texas residents. Accessibility to the Texas Department of Credit Unions, the Texas Legislature and the Governor, allow state-chartered credit unions a greater opportunity to affect credit union policy and provide more input into their governance than their federal counterparts.
American Share’s President and CEO, Dennis Adams, believes the newly-named Alliance Credit Union isn’t alone in this line of thinking. “The value of the state charter and private share insurance are being closely examined by many state and federally chartered credit unions around the country,” he said. “Like the credit unions we serve, we are owned and governed by our members, and we have a fundamental responsibility to serve in their best interests.”
Following conversion of insured status, Alliance Credit Union also added excess share insurance of another $250,000 from Excess Share Insurance Corporation (ESI). With this added coverage, each individual account of Alliance’s members is now insured up to $500,000. “This expanded coverage effectively doubles the protection that we could provide our members before,” stated CEO Rose.
American Share is a member-owned share guaranty corporation, licensed by the Ohio Department of Insurance, dual-regulated by the Ohio Departments of Insurance and Commerce and approved to provide private share insurance in Texas by the Texas Credit Union Department. 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 mailto:firstname.lastname@example.org.