Indiana CU first privately insured to join FHLB
June 17, 2016 -- Beacon Credit Union of Wabash, Ind., is the first privately insured credit union approved for membership in the Federal Home Loan Bank (FHLB) system, according to a letter from American Share Insurance to its members.
According to the letter, the $1.2 billion credit union received confirmation June 3 that it was approved as a member of the FHLB of Indianapolis. ASI also reported that other privately insured credit unions in Ohio, Illinois, Indiana, Texas and California have applications pending for membership through their respective FHLB branch banks.
“Since February, American Share has been diligently working with leaders of the seven FHLB branches positioned to serve our member credit unions nationwide to assure their full understanding of private share insurance, privately insured credit unions and American Share's role in the oversight of privately insured credit unions,” wrote ASI CEO Dennis Adams. “
Adams, in the letter, urged credit unions interested in FHLB membership to contact the FHLB branch serving their particular markets.