Credit Union Times - Centennial Edition - (Page I34) CeLeBrAtiNg 100 YeArS , SPeCiAL CeNteNNiAL editioN When $1 Million, Well, Meant Something By eileen M. cOurter CU Times Correspondent-at-Large LUTHERSVILLE, Md. — If you’re old enough, you may remember saying to yourself, “Gee, if I can only earn $15,000 a year, I’ll have it made.” Given rising salaries and cost of living, that aspiration now seems more than modest. Similarly, while today Credit Union Times runs a Billionaires’ Club series profiling credit unions that have reached $1 billion in assets, at one time achieving $1 million was quite a landmark. Case in point–First Financial Federal Credit Union of Maryland, chartered in 1953 as TABCO Federal Credit Union. Formed to serve Baltimore County School System employees, the story of the credit union’s early years is familiar to many other credit unions. Initial assets totaled $5, stashed in a cigar box. Headquarters was located in the home of the president, Matthew Tress. Five years later assets had reached more than $95,000 and the credit union established an honest-to-gosh office and hired its first employee. Then, in 1962, what was still TABCO FCU recorded $1 million in assets. Based on the Bureau of Labor Standards online inflation calculator, that translates into $7,283,576.16 in 2008. An old saying declares the first $1 million is the hardest, and in line with inflation, today a book title declares, “The First Billion is the Hardest.” The history of First Financial shows that after reaching $1 million in 1962, assets were $5 million in 1969, $10 million in 1972, $32 million in 1978, and more than $48 million by the credit union’s 30th anniversary in 1983. It seems as though growth indeed spurs growth. “It’s definitely true,” President/CEO Rob Windsor said. “When I got here in 1996 we were $186 million. As a teachers’ credit union, May is probably our highest asset month of the year. In June, July and August teachers are taking their money out because they’re paid on a 10-month calendar.” Today, with more than 5,500 members and $650 million in assets, First Financial, like other credit unions, is very different than it was a half-century ago. For one thing, in addition to educators, the credit union also includes government and hospital employees and SEGs in the field of membership. But Windsor suggested the founders would be pleased with the changes. In fact, “At our 50th anniversary we had the founder and first president of the credit union, Matthew Tress, who had retired to Florida,” Windsor said. “We flew him and his wife to the celebration and they were quite goes right over their heads.” However, he agreed economy of scale is important. In a sense it’s like a football team, where size often does count. “First of all, credit unions can afford staff, which is important. Employees are the best investment the board can make. Good employees don’t cost you anything. Bad employees cost a lot. By growing, a credit union can pay the salaries and benefits that attract people who are educated, experienced and work hard.” In the history posted on its Web site, First Financial notes that in 1964 the credit union issued its first newsletter, ChatterBox. Since then the number of potential channels to and from members has blossomed to include instant messaging, texting and a host of other avenues made possible by today’s technology. At first glance it would seem easier to communicate with members. However, Windsor noted, people change. “Probably back in the 1960s people paid a little more attention to some of the communications that came out. Today, there’s so much in your mailbox and your e-mailbox. Just the amount of communication going on probably hinders effective communication. “About 20,000 members have given us their e-mail address. We don’t want to overwhelm them, although we do want to send out useful information telling them what’s going on at the credit union. We don’t send them e-mail more than once or twice a month. A lot of our members get e-statements, and when they get their e-statement they receive a newsletter.” Windsor also raises the issue of competition. “When I first started in the credit union field, credit unions used to be able to beat competition by one or two points,” the First Financial CEO said. “Banks were more into commercial fields. Today all the banks are paying more attention to consumers. Of course credit unions are growing and starting to compete with each other, especially with community charters,” he said. —ecourter@cutimes.com Founding president Matthew Tress and his wife, Velma, attend their credit union’s 50th anniversary celebration. proud that the credit union had grown to the level it has and provides the services it does.” Are today’s members as impressed when their credit union reaches certain milestones? “They’re looking at the level of services provided to them,” Windsor said. “I don’t think they could care less about some landmarks the credit union as a whole has achieved. We do have members who come in and say, ‘I’ve been a member for 30 years,’ or ‘I’ve been a member for 40 years.’ They’re proud of that. But as far as us achieving $500 million or $700 million, I think that just All in the Family: roy Campana Continues Legacy at industrial CU By JiM ruBenstein CU Times Senior Correspondent BOSTON — Roy Campana, president/CEO of $120 million Industrial Credit Union in Boston, is quick to acknowledge that he enjoys holding up a revered industry legacy–as the third generation of his family to help run the nation’s oldest community-chartered CU. “There’s something pretty fabulous about being part of this movement, and what I really think is important is that my credit union and others, too have the same philosophy today as our forefathers,” declared Campana whose great uncle, Joseph Campana, was among the signers of the original CUNA charter in 1934 in Estes Park, Colo. Industrial CU itself was founded in 1910 as the Woman’s Educational and Industrial Union and was one of the lead CUs to form the Massachusetts Credit Union League, the first state league, in 1921. The league included 50 CUs from Massachusetts and nearby New England states. Though Campana was too young to recall much about his great uncle, he remembers “being at home for summer vacation and having to help my dad post ledger cards and copy files in the credit union.” His father, John J. Campana, began his career at Boston Firefighters Credit Union in the late 1940s and was treasurer of Industrial from 1950 to 2006, when he died at age 93. He was an active member of the board and a strong advocate of the movement, said Roy Campana. (Continued on page 35) Here is a photo of the 1935 board at Industrial Credit Union in Boston. www.cutimes.com 34 Credit Union Times, December 2008 http://www.cutimes.com
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