As federal tax reform lingers onCapitol Hill, Credit Union Times asked industry expertshow the elimination of the credit union tax exemption could impactbalance sheets.
Dan McGowan, CFO at the $172 million Pioneer Federal CreditUnion in Charleston, W.V., said his shop is expecting to earnaround $800,000 this year, right at 50 basis points on averageassets of about $160 million.
“A quick calculation of our tax liability with those earningswould be $272K (34% of pre-tax earnings) diminishing the bottomline to a final post-tax net income of $528K,” hesaid.
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