DUBLIN, Ohio — Credit unions in three additional states can now offer members up to $10 million in supplemental deposit insurance above federal coverage limits following regulatory approvals received by Excess Share Insurance Corporation (ESI), a wholly owned subsidiary of American Share Insurance (ASI).
According to an announcement by ASI, the approvals allow qualifying credit unions in South Dakota, Alaska and New Mexico to offer the additional protection to members with larger deposit balances, including businesses and municipalities.
With the expansion, ESI is now available in 41 states and the District of Columbia and serves more than 350 credit unions, according to the company.
The supplemental coverage is designed to help credit unions attract and retain larger deposits that might otherwise be distributed among multiple financial institutions to remain within federal insurance limits.
ASI said the coverage also allows credit unions to retain 100% of those deposits for local member lending.
“We are excited to establish a presence in South Dakota, Alaska and New Mexico and deepen our commitment to the credit union movement,” said Theresa Mason, president and CEO of ASI and ESI. “We look forward to building lasting relationships and helping these credit unions thrive for years to come.”
State Credit Union Associations Welcome Expansion
Credit union trade associations in South Dakota and New Mexico welcomed the additional insurance option.
“We’re happy that South Dakota credit unions now have access to Excess Share Insurance,” Joe Keller, president and CEO of the Dakota Credit Union Association, said in a statement. “ESI gives credit unions another tool to attract and protect larger deposits while providing members with added confidence that their savings are safe and secure.”
Melia Heimbuck, president of the Credit Union Association of new Mexico, said the availability of supplemental insurance will give credit unions additional flexibility in serving members.
“We appreciate the opportunity to work collaboratively with ASI and ESI to bring additional deposit insurance options to New Mexico,” Heimbuck said in a statement.. “Making Excess Share Insurance available gives credit unions greater flexibility and another way to protect their members while continuing to serve their communities.”
About the Insurance Coverage
American Share Insurance is a member-owned share guaranty corporation licensed by the Ohio Department of Insurance. It provides up to $250,000 in primary share insurance per member account.
Its subsidiary, Excess Share Insurance Corporation, has operated since 1993 and provides supplemental coverage to qualifying federally and privately insured credit unions.
ASI said the expansion provides credit unions with another option for competing for larger deposits while keeping those funds available to support lending and other services in their communities.
