Ask Chuck: Small Credit Union Advice from the CUinsight Community #5
Chuck Cockburn travels across the United States coaching small and mid-size credit union CEOs on how to create a foundation for long-term success. Submit your confidential question to Chuck by emailing AskChuck@CUinsight.com.
Dear Chuck:
My credit union needs to increase membership and find a way to deploy additional loans. There isn’t another credit union serving members in our community, but our current charter prohibits us from serving many people in our community. How do I expand my federal charter to serve more people?
Signed,
How to Federal Charter Expansion ($8 million in assets)
Dear How to Federal Charter Expansion,
The Federal Credit Union Act recognizes three types of federal charters: single common bond, multiple common bond and community. Many federal credit unions in your situation have chosen to switch to a community charter or to expand their existing community charter to increase membership and loan deployment opportunities. NCUA requirements for a community charter are:
- The geographic area’s boundaries must be clearly defined;
- The area is a “well-defined” local, community, neighborhood, or rural district;” and
- Individuals must have common interests and/or interact.
Specific requirements, guidelines and forms are available at the NCUA website in the Resource and Publications Tab.
The Chartering and Field of Membership Manual is available to download to assist you.
See chapter 2 V for community charter information. Additionally, your NCUA Regional Office can provide assistance and even templates to assist you in completing your application. If you do not have the time or expertise to write the application, there are consultants that specialize in the field of work.
Chuck is the President of Credit Union Strategic Planning, leading the Net Worth Restoration, Field of Membership Expansion, Board Governance and Small Credit Union CEO Mentorship Programs. Chuck’s 25-year CEO track record (and 40 in the business) has been to profitably grow credit unions while significantly improving service and morale. Chuck’s coaching resulted in eight prior direct reports becoming credit union CEOs.
