Private Share Insurance Strengthens Dual Chartering: ASI-Insured Credit Unions Deliver Competitive Growth and Strong Capital

A new economic report released by American Share Insurance (ASI) highlights the strength, stability, and strategic value of private share insurance for credit unions. The 2025 Economic Report, authored by respected economist Dr. Bill Hampel, examines the financial health and performance of credit unions with private deposit insurance and compares them to national averages. The findings reveal that privately insured institutions demonstrate stronger capitalization, comparable asset growth, and increased member engagement.
 
According to the report, ASI-insured credit unions have demonstrated resilient growth over the past three decades, which included stressful economic and financial environments. Assets at ASI insured institutions expanded at an average annual rate of 5.6%, closely tracking the 6.3% rate of federally insured credit unions. The report further shows ASI's track record of financial stability, noting that in nearly five decades of operation, no credit union member has ever suffered a loss of insured shares. This strong performance was particularly evident during the Great Financial Crisis of 2007-2009, when ASI successfully managed heightened challenges despite significant exposure in states hardest hit by the economic downturn.
 
"Private share insurance is not the right fit for every credit union, and we recognize that. For state-chartered credit unions that choose it, ASI delivers a proven model built on strong capital, trusted state oversight, and the flexibility to serve members in ways that reflect local priorities and values," said Dr. Bill Hampel, author of the report, and former Chief Economist and Chief Policy Officer for the Credit Union National Association (CUNA). "These findings should encourage policymakers and credit union leaders to explore viable alternatives that preserve the unique strengths of the credit union model."
 
Additionally, the report reveals that the availability of ASI insurance enhances the attractiveness of a state credit union charter. From 2000 to 2023, the proportion of credit unions with a state charter rose in states that allow private insurance, while the share fell in states that prohibited it. The difference in these trends is dramatic. State-chartered credit unions in ASI states increased from 42.9% to 47.4% of total institutions, while falling from 38% to 35.6% in all other states. This substantial divergence in the incidence of state charters reflects not only strong financial performance – including consistently high capital ratios and low delinquencies – but also operational advantages such as streamlined regulatory oversight that eliminates dual federal examinations.
 
The report also highlights the strategic positioning of ASI credit unions in business lending. These institutions devoted 12.2% of their assets to business lending in 2023 -- more than double the 5.8% rate at federal credit unions and significantly higher than the 8.3% at state credit unions overall. This focus enables them to serve diverse member needs and demonstrates strong support for local business communities.
 
"Our model provides a sound, state-regulated alternative to federal insurance that gives credit unions more flexibility, greater independence, and the ability to serve their members better," said Theresa Mason, CEO of American Share Insurance. "This report confirms what we've long believed: when credit unions are empowered to choose the insurance solution that aligns best with their mission and members, everyone benefits."
 
ASI's CU Choice initiative emphasizes the importance of flexibility, choice, and localized decision-making in today's evolving financial landscape. The company operates within strict state-level regulatory frameworks and employs a collaborative approach that allows credit unions to manage risk proactively.
 
The full report is
​available at: www.americanshare.com/Downloadable%20files/2025%20Economic%20Report_Bill%20Hampel.pdf