As federal tax reform lingers on Capitol Hill, Credit Union Times asked industry experts how the elimination of the credit union tax exemption could impact balance sheets.

Dan McGowan, CFO at the $172 million Pioneer Federal Credit Union in Charleston, W.V., said his shop is expecting to earn around $800,000 this year, right at 50 basis points on average assets of about $160 million.

“A quick calculation of our tax liability with those earnings would be $272K (34% of pre-tax earnings) diminishing the bottom line to a final post-tax net income of $528K,” he said.

“As with all not-for-profit co-ops, earnings are to be reinvested into the primary mission of the organization. Simply put, federal income taxation would deprive us of the opportunity to do so to the degree of the taxation,” he added.

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.