Latah Federal Credit Union Changes Charter and Share Insurance
American Share Insurance, the nation’s only alternative to federal share insurance, is pleased to report the recent conversion of the Idaho-based, $86 million Latah Federal Credit Union from a federal charter to a state charter and American Share Insurance. This is the third in a line of credit unions converting to state charters and private share insurance in the last year. Eastex FCU (TX) and Glendale Area Schools FCU (CA) both converted charter and insurance over the past 12 months.
When considering the charter conversion as well as the change to private share insurance, Latah FCU’s board and management looked long and hard at the options available to them to determine how they could best continue serving their membership. “The Idaho state charter offered many favorable benefits, but if we only changed to a state charter, the NCUA could still interfere in our operations through their management of the insurance fund,” President Lowell Stevens remarked. “We determined that a relationship with a business partner like American Share Insurance would protect more of our members’ deposits and give us greater flexibility in serving our members into the future.”
American Share’s President and CEO, Dennis Adams, believes the newly-named Latah 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.”
“American Share finished 2015 with the strongest equity position in its 42-year history of 1.70%, well above the NCUSIF’s 1.29%, and our loss reserves-to-insured shares ratio is a multiple of that of the NCUSIF’s,” Adams added. Latah Credit Union is now American Share’s largest member credit union in Idaho.