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.
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