September 23, 2005 Vol.
2, No. 9
A Mutual Exchange is a monthly electronic newsletter for
mutual institutions. America’s Community Bankers is as committed to
mutual banks as you are to serving your community. We hope that this monthly
update will keep you current on the issues facing mutual
institutions. We welcome your feedback. Please email
[email protected] with your thoughts, comments and
suggestions.
ACB Authors Charter Choice Op-Ed
ACB’s President and CEO Diane Casey-Landry recently wrote an op-ed
on credit union conversion that appeared in The Hill. Casey-Landry makes the
case for charter choice and urges support for the Credit Union
Charter Choice Act, introduced by Reps. Patrick McHenry (R-N.C.) and
Ed Towns (D-N.Y.).
Click here to read the op-ed.
FASB Plans Business Combinations Roundtable
ACB has requested
a spot at the FASB’s Business Combinations Roundtable to be held on
October 27.
FASB’s proposed changes will eliminate
the pooling method of accounting for the merger of
mutual institutions.
ACB is also in the process of drafting a comment letter to FASB and
remains actively engaged on this issue.
Committee to Meet in Orlando
ACB’s Mutual Institutions Committee will meet in Orlando, Fla.
on Sunday, October 16 in conjunction with ACB’s Annual
Convention and Market Expo. The committee is slated to discuss a
range of issues affecting mutual bankers. ACB welcomes your
participation in our Mutual Institutions Committee. Please contact
Charlotte Bahin at
[email protected] for
more information.
Mutual Banks Involved in Mutual-to-Mutual Combinations
A mutual-to-mutual combination between Salem Five Cents Savings
Bank and Heritage Co-operative Bank was announced last week. The
merger will occur as Salem Five Cents moves ahead with its
reorganization to a mutual holding company which will be known as
Salem Five Bancorp.
In Philadelphia, Beneficial Savings Bank is expected
to close a deal with Northwood Savings Bank early next quarter.
Beneficial is seeking to acquire small institutions in the
Philadelphia metro area. Northwood, with $9.2 million in assets,
suggested the deal as it stated that compliance costs associated
with the Patriot Act and Bank Secrecy Act would sharply cut its
profits.
The mergers or acquisitions are currently accounted
for as pooling-of-interest transactions
and no cash or stock will be exchanged. The deadline for comments on FASB’s Exposure Draft on Business Combinations is October 28.
The proposed changes will eliminate
the pooling method of accounting for the merger of
mutual institutions.
Please email ACB’s Charlotte Bahin at
[email protected] with
your comments on this issue.
Click here for FASB’s Exposure Draft.
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[email protected] with your ideas and feedback.
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