OCC Releases Proposed Rule to Allow Certain Federal Savings Associations to Elect to Operate with National Bank Powers

September 20, 2018

On September 10, 2018, the Office of the Comptroller of the Currency (the “OCC”) issued a proposed rule implementing Section 206 of the Economic Growth, Relief and Consumer Protection Act, which permits federal savings associations with total consolidated assets of $20 billion or less as of December 31, 2017 to elect to operate with national bank powers without converting to a national bank charter. This election would allow an eligible federal savings association to exceed its statutory commercial and consumer lending limits and avoid compliance with the qualified thrift lender test.

For more information, including a summary of the OCC’s proposed rule, please see the attached News Alert.


New Tax Law – What Every Credit Union Executive Needs to Know

August 22, 2018

The Tax Cuts and Jobs Act, which became law on December 22, 2017, imposes a substantial new penalty tax on tax-exempt organizations, including federal and state-chartered credit unions, regarding certain types of “excessive” compensation paid to their covered employees. This new penalty tax is effective for the taxable years of the credit union beginning after December 31, 2017 and will likely have a significant impact on the design and administration of the executive compensation programs of many credit unions.


Luse Gorman Serves as Legal Counsel to Equitable Bancorp, MHC in its Proposed Merger with South Shore Mutual Holding Company

August 16, 2018

On August 16, 2018, Equitable Bancorp, MHC (“Equitable MHC”), East Weymouth, Massachusetts, the mutual bank holding company for Equitable Bank, and South Shore Mutual Holding Company (“South Shore MHC”), Weymouth, Massachusetts, the mutual bank holding company for Coastal Heritage Bank, announced their entry into a definitive merger agreement pursuant to which South Shore MHC will merge with and into Equitable MHC under the name Equitable Bancorp, MHC.