During 2023 and 2024, 57 Community Credit Unions were granted permission to expand into a total of 89 areas that are/were underserved by other financial institutions.
These expansions have the potential to increase membership at these credit unions by nearly 84 million members. More importantly, they will potentially provide banking services to 84 million people currently lacking these services.
In addition to listing the 57 credit unions that were granted these permissions, this week we also examine how past growth has brought them to where they are today.
Underserved Does Not Mean Undeserved
Typically, a community credit union has to service a well-defined community, neighborhood or rural district, but there are exceptions. One such exception is when a federally chartered credit union wishes to expand into an area (or areas) that are “underserved”.
A federal credit union is generally allowed to expand outside its defined area if the new target area is an “investment area” (as defined in the Federal Credit Union Act) and is “underserved” by other financial institutions.
During calendar years 2023 and 2024, 89 such expansions were approved. The 57 federal credit unions on the receiving side of those approvals can be found on page 5. Each expanded into underserved areas during calendar year 2023 (21)or 2024 (29); with seven making these expansions in both years. The number of potential new members these credit “could” gain is just shy of 84 million.
With ten such expansions between November 2023 and August 2024, 4-Star Barksdale Federal Credit Union, Barksdale AFB, Bossier City, LA (9589) has been the most aggressive in the past two years. It stands to gain more than 8.5 million of those potential new members.
Established in 1954, Barksdale FCU’s initial mission was to serve the personnel (both military and civilian) at the air force base (along with their families).
While it continues that mission, Barksdale has expanded steadily since 1982, when it acquired its first credit union. It had 16 total credit union acquisitions by the end of 2020. In 2022, Barksdale acquired a bank (JRN 40:40) and has been on a mission to bring its services to new (and underserved) areas since then.
Today, in addition to having a community charter covering six Louisiana Parishes, Barksdale FCU serves more than 1,000 companies and associations. It operates through over 30 branch offices, mostly in Louisiana, but in Arkansas and Texas now, as well.
The second most active FCU expanding into areas with little to no banking services in the past two years was 5-Star All In FCU, Daleville, AL (17642) with eight new tracts, each containing almost a million potential new members.
You wouldn’t guess by the name, but All In FCU also had its start catering to military personnel. With an initial investment of just $35, All In FCU was established in 1966 as Army Aviation Center FCU in Fort Rucker, Alabama.
It wasn’t until 1991 that expansion started. After the acquisition of 11 credit unions, Army Aviation changed its name to All In FCU (May 2019). In 2023, it added one new underserved tract, then seven more in 2024. And, like Barksdale, All In FCU’s most recent acquisition was that of a bank (JRN 41:17).
Established in 1931 as a Mississippi state–chartered credit union, 5-Star Mutual F.C.U., Vicksburg, MS (24948) converted to a federal charter in September 2023. It is no surprise to us that Mutual FCU landed on page 5 this week. What was a bit of a surprise, however, was that Mutual’s membership grew nearly 100% during 2024. While expansion into underserved areas will grow membership, it is usually a very slow, organic process. That is evidenced by its 2023 foray (JRN 41:26).
However, during the fourth quarter ’24, Mutual FCU acquired the $161.6 billion asset Mississippi FCU, Jackson, MS. This transaction increased Mutual’s asset size by 50% and doubled its membership proving there is more than one way to service low-income areas. Both Mutual FCU and Mississippi FCU are (and were) designated as Low-Income Credit Unions. While Mutual FCU is still primarily a MS institution, today it also serves several counties in AL, LA, AR and TN.
4-Star NUSENDA F.C.U., Albuquerque, NM (948) was chartered in 1936 by eight local educators. In its nearly 90 years, it has acquired six credit unions and one bank, and has changed its name twice to accommodate its growing realm. Today, NUSENDA FCU boasts nearly 280,000 members, 30 branch offices and $4.7 billion in assets.
These stories sound very similar. All have been recommended (rated either 5-Stars or 4-Stars by Bauer). They all started out as very small institutions with a very well-defined (if limited) field of membership. And, they have all grown extensively by whatever means available to them at the time.
2-Star GP Federal C.U., Rome, GA (365) (formerly Georgia Power Northwest FCU, and Georgia Power Rome Division Employees FCU before that) is different. In its 90 year existence GP FCU has acquired no one. What’s more, GP FCU had a recommended Bauer rating for over 34 years.
At June 30, 2023, GP FCU had assets of $93 million and was approaching 7,000 members. However, two months later, (August 2023) GP FCU was granted approval to expand into a new part of Georgia. For the first 12 months or so, growth was limited and GP was still shy of the $100 million asset mark at 9/30/2024.
That changed in the fourth quarter ’24 when its assets jumped by 40%. With regulatory capital at $7.282 million and assets totaling $138.971 million, GP FCU saw its capital ratio drop from 7.39% down to 5.24%. Its regulatory capital classification went from “Well Capitalized” to “Undercapitalized”; and its Bauer rating fell from 4-Stars to 2-Stars.
