Idahy credit union seeks to change charter status
Idahy, a credit union created primarily to serve transportation employees in Boise, has grown the past half-century into a full-service financial organization with five offices, more than $114 million in assets and more than 14,000 members throughout the state.
The credit union will make an important organizational transition this fall if members approve of the change. Idahy ‘s board of directors seeks approval to move from a federal to a state charter. Information and ballots were distributed to members and a special meeting is scheduled Nov. 6 to consider the vote. Members can mail completed ballots to Idahy Federal credit Union, 1010 Rose St., Boise, ID 83703, or present the ballots in person at the special meeting.
|Idahy Note: Glenda Fuller, who works in the ITD’s Roadway Data Section in the Division of Planning, serves as secretary for the Idahy board of directors.
Changing the charter will provide two major benefits to the institution and its members, according to a recent announcement. First, it will allow Idahy to offer membership to more consumers in the communities it serves through an expanded field of membership. Second, it will gain the ability to provide members an expanded array of products and services currently available under the federal charter.
“Simply put, the charter conversion will allow IDAHY to help more people in more places with more products and services,” credit union leaders explain.
The following information is provided by Idahy
What is the difference between an Idaho State Charter and a Federal Charter?
The United States credit union movement has the benefit of having a dual-chartering system in place. What this means is the credit unions throughout the United States have the option of being chartered under the state in which they are domiciled, or they can operate as a federally chartered credit union.
Idaho has 40 state-chartered credit unions (including the two largest Idaho credit unions) and 21 federally chartered credit unions. Idaho State-chartered credit unions are regulated by the Idaho Department of Finance (DOF) and are subject to complying with the “Idaho Credit Union Act” and financial operating laws. (http://finance.idaho.gov/CreditUnion/CreditUnions.aspx )
Federally chartered credit unions are subject to regulation by the National Credit Union Administration (NCUA) and operate under the “Federal Credit Union Act”.
Will my money still be insured if IIDAHY converts to an Idaho Charter?
Members’ money will still be insured as it is today, by NCUA through the National Credit Union Share Insurance Fund (NCUSIF), even after becoming state chartered. State-chartered credit unions have the option to be privately insured or federally insured through NCUA. Idahy’s board intends to continue with the federal insurance.
How will my Idahy accounts change?
Idahy accounts will not change as a result of conversion to a state charter. In fact, the only change members will see is that the “Federal” will no longer be part of Idahy’s official name.
Is this conversion in any way related to the current economic crisis?
Absolutely not. Idahy has been, and continues to be, prosperous and financially sound. In fact, Idahy’s regulators would not permit the charter conversion if the credit union had safety and soundness issues. Many financial institutions are experiencing high losses due to mounting defaults on their subprime mortgage loans. Idahy does not offer subprime lending, due to the high risk associated with these types of loans. Because Idahy members entrust us with their money, we consistently use responsible and sound lending practices. This allows us to remain in a healthy financial position and provide competitive deposit and loan rates to our members.
How will Idahy be regulated?
Idahy is currently regulated by the National Credit Union Administration (NCUA). Under the state charter, Idahy will still be partially regulated by the NCUA because we will still provide NCUA share insurance. However, Idahy’s primary regulator will become The Credit Union Section of the Idaho Department of Finance. The DOF Credit Union Section recently completed its Annual Performance Standards Evaluation as part of the National Association of State Credit Union Supervisors (NASCUS) Accreditation Program.
The Credit Union Section has been nationally accredited since 1990. In addition, the department enjoys an excellent working relationship with other state credit union regulators and private insurers. The department is an active participant in National Association of State Credit Union Supervisors (NASCUS), which actively coordinates with all state credit union regulatory agencies and the National Credit Union Administration (NCUA) on a variety of issues that affect the credit union industry.
The department also has a good working relationship with NCUA, the federal agency that regulates federal credit unions and administers the National Credit Union Share Insurance Fund. Department personnel meet regularly with NCUA staff to discuss regulatory issues of mutual concern and coordinate corporate credit union examinations.
History: Seven employees of the Idaho Department of Highways, now the Idaho Transportation Department,formed Idahy in 1952. It has grown from an original asset size of $35 to more than $114 million the past 56 years. Idahy serves more than 14,000 members that are either employees or their family members form a variety of employer groups throughout the state. It also serves 11 Boise neighborhoods.
Idahy is a member-owned, democratically operated cooperative and is governed by a volunteer board. It operates from five offices located in Boise, Coeur d’Alene and La Grande, Ore.