Exodus Continues From Utah State Charter

OGDEN, Utah. – Alliance CU, one of the largest remaining state charters in Utah was approved to convert to a federal charter, NCUA reported Friday. The $85 million credit union joined an exodus that began almost four years ago when the state’s bankers heightened their attack on the tax-exemption and liberal field of membership rules for state charters. Alliance CU, now Alliance Community FCU, was granted a broad community charter encompassing three counties, according to NCUA. Since the onset of the bankers assault, virtually all of Utah’s state chartered credit unions have converted to federal charters, depriving the state of millions of dollars in sales tax revenues and supervisory fees a year.