Glendale Area Schools Federal Credit Union has converted to a state charter and will also be insured through Dublin, Ohio-based American Share Insurance, the sole alternative provider of insurance for CUs.
GASCU (formerly GASFCU) had been federally chartered for 79 years before beginning the conversion processes in 2015. According to ASI, GASCU is now the second FICU to convert to a state charter and private insurance in the last year.
"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," Glendale's CEO Stuart Perlitsh said.
According to ASI President/CEO Dennis Adams, more CUs are interested in converting like Glendale; he notes that Latah FCU in Idaho is "finalizing" the conversion, pending a vote by members, and an unnamed CU in Texas is also looking to convert. "This will be the second Texas domiciled federally chartered credit union to seek a change in charter and insurance over the past 15 months," ASI's President noted.
Recently, privately insured credit unions, or PICUs, were given access to the Federal Home Loan Banking System which may be a motivating factor for the dual-conversions.
"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," Adams said.
