Two more credit unions have converted from federal to private share insurance.
The $240 million-asset Rocky Mountain Credit Union in Helena, Mont., and $344 million-asset River Valley Credit Union in Miamisburg, Ohio, are using insurance from American Share Insurance. The change was effective on Monday.
Rocky Mountain CU is the first Montana credit union to convert from federal to private insurance since American Share was approved to conduct business in the state in January.
“Our board of directors thought American Share Insurance was a far better insurance option for our membership and our members agreed,” Ed Stofko, president and CEO of Rocky Mountain CU, said in a written statement. “ASI offers our credit union a distinct strategic advantage that no other financial institution in our market areas can offer.”
Originally founded as the Ohio Credit Union Shareholders Guaranty Association in 1974, American Share now provides primary share insurance coverage to over 1 million CUs across 10 states. American Share is a member-owned deposit guaranty corporation that insures up to $250,000 on each account. Kevin Willour, president and CEO of Beacon Credit Union, serves as chairman at American Share.
“River Valley Credit Union decided to switch to American Share primarily because of the business partnership relationship as opposed to the regulatory relationship that we had with our federal deposit insurer,” John Bowen, River Valley’s president and CEO, said in a written statement. “Our members benefit through expanded coverage that is easy to understand."
