Dale Employees Federal Credit Union Expands With Help From CUCollaborate
Dale Employees FCU recently converted to a community charter and added a rural district to its service area, increasing potential membership by more than 7,000%
WASHINGTON, D.C. (February 17, 2022) — On January 31, 2022, the NCUA approved Dale Employees Federal Credit Union (DEFCU)’s conversion from a single occupational common bond to a community charter, allowing for the addition of a 27-county rural district to its field of membership (FOM).
DEFCU, based in Columbus, Nebraska, was seeking to expand its service area, however they had met a hurdle due to FOM constraints. Under their now-former charter, the institution was only allowed to serve an estimated field of membership of 5,000 people linked to the Columbus-based computer hardware company Vishay Dale, which was simply no longer sustainable.
“DEFCU can no longer rely on Vishay Dale as the organization’s primary membership driver,” stated credit union president Mary Henke. “Field of membership parameters and restrictions on our primary select employee group were both major hindrances to our institution’s growth.”
To confront this, the credit union enlisted the help of CUCollaborate in submitting an ultimately successful charter conversion application. Under a community charter, an institution has the option of adding a rural district to its FOM, provided it meets certain criteria. The area must first consist of contiguous counties and be well-defined in geographic terms. Further, it must adhere to the NCUA regulations of having a total population of less than one million and a population density of under one hundred people per square mile.
CUCollaborate specializes in field of membership consulting services specifically for the purpose of helping credit unions expand their FOM with their regulator. In this case, the company worked alongside DEFCU to prove the area to be added indeed met all these standards, along with the institution’s ability and commitment to serving potential new members immediately.
Ms. Henke described the conversion and subsequent expansion as “a vital piece of our credit union’s future success.” One that, she continued, “will help us enter a new phase of growth and reach an entire new community of potential members, a challenge we’ve proved we are more than ready for.”
The move itself allows the credit union to now offer services to anyone who lives, works, worships or attends school in any of the 27 counties, as well as businesses and other entities. The combined area, with an estimated population of more than 350,000, will increase DEFCU’s potential field of membership by more than 7,000%.
Consumers are now eligible for membership in the 23 Nebraska counties of Antelope, Boone, Butler, Cedar, Colfax, Cuming, Dakota, Dixon, Dodge, Hamilton, Knox, Madison, Merrick, Nance, Pierce, Platte, Polk, Saunders, Seward, Stanton, Thurston, Wayne, and York; as well as Bon Homme, Clay, Union, and Yankton counties in the southeastern corner of South Dakota.
CUCollaborate Founder and CEO Sam Brownell was naturally pleased with the outcome. “We are of course thrilled with Dale Employees’ conversion and expansion,” he said. “Most importantly, the credit union has now substantially increased its potential field of membership, which will allow it to offer more services to more people across the entire area. This progress is key for any institution looking to grow and we are thankful DEFCU trusted us to be a part of the process.”
About CUCollaborate
CUCollaborate champions credit union growth through disruptive innovation. The company’s aim is to help credit unions adapt, grow, and succeed long term by offering the innovation, insight, and know-how to help them do it.
CUCollaborate Website: www.cucollaborate.com
CUCollaborate LinkedIn: www.linkedin.com/company/cucollaborate/
About Dale Employees FCU
Dale Employees FCU is a cooperative association organized to promote savings at a competitive rate, and to create a source of credit for the membership at reasonable interest rates. The credit union was originally chartered in 1952 and is headquartered in Columbus, Nebraska.
