Luse Gorman Served as Legal Counsel to NuMark Credit Union in its Acquisition of Pioneer State Bank
On March 31, 2023, NuMark Credit Union, Joliet, Illinois, completed its acquisition of Pioneer State Bank, Earlville, Illinois.
Read More...Alert – NCUA Approves an Amendment to its Current Rule on Subordinated Debt
To our clients and friends:
Recently, the NCUA finalized an amendment to its current rules on subordinated debt. The amendment makes two material changes to the current rule. First, there is no longer a maximum maturity for subordinated notes, provided certain requirements are satisfied. In addition, the regulatory capital treatment of grandfathered secondary capital was extended from 20 years to the later of 30 years from the date of issuance or January 1, 2052. Please see our Alert for more details.
Credit unions should strongly consider getting NCUA preapproval to issue subordinated debt for liquidity and capital planning purposes even if they have no immediate plans to issue subordinated debt. The current rules provide eligible credit unions with a two-year window to issue subordinated debt without any further approvals from the NCUA. Further information about subordinated debt can be found here: White Paper - NCUA Subordinated Debt Final Rule.
Read More...Luse Gorman is Legal Counsel to Dedham Institution for Savings in its Proposed Strategic Partnership with South Shore Bank
On March 14, 2023, 1831 Bancorp, MHC, Dedham, Massachusetts, and South Shore Bancorp, MHC, South Weymouth, Massachusetts, announced their agreement to form a strategic partnership through the merger of 1831 Bancorp, MHC and South Shore Bancorp, MHC. South Shore Bank and Dedham Institution for Savings, the bank subsidiaries of South Shore Bancorp, MHC and 1831 Bancorp, MHC, respectively, will remain independent entities under a mutual multi-bank holding company.
Read More...Alert – Considerations for Credit Unions in the Wake of Recent Bank Failures
To our clients and friends:
In light of the recent large bank failures, our Alert regarding items that credit unions should consider is available here.
To diversify sources of liquidity, eligible credit unions should consider getting NCUA preapproval to issue subordinated debt, which is discussed in our Alert.
Luse Gorman, PC White Paper – The NCUA’s Final Rule on Subordinated Debt
Luse Gorman, PC White Paper - The NCUA's Final Rule on Subordinated Debt
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