What’s the difference between a federal and a state charter?Expand
A Federally chartered CU is one that is governed at the national level by The National Credit Union Association (NCUA for short). They make and administer the policies of operating a credit union. The NCUA is also the agency that insures our members’ deposits. This is the same concept as how the FDIC governs and insures banks.
With a State Charter, the credit union is governed by the state with assistance from the NCUA. State Chartered credit unions are still insured by the NCUA, but more of the decisions affecting the credit union are made by someone here in the great state of Texas. Additionally, the Credit Union Department of Texas provides resources and is an advocate for credit unions strictly here in the state. They want to see Texas-based credit unions grow and expand so we can reach more communities to help improve people’s financial health.
How is this better for members?Expand
Our passion is to serve and improve the financial health of individuals and businesses in the communities we serve. We want everyone to have the chance to be financially healthy. We believe in the spirit of “people helping people” and opening up our charter to State, it will open up the doors for us to reach more communities and more people.
Will my accounts still be insured?Expand
Yes, there will be no change to how your money is protected. Your deposits will still be federally insured based on current guidelines provided by the NCUA, up to $250,000.
Will there be changes to our member account numbers, account IDs, or the credit union’s routing number?Expand
We are not changing your account numbers, routing number, login usernames, or anything else tied to your account. Everything will remain the same.
Will the credit union’s website change?Expand
It will not. State Charter does not impact our website other than letting more people know they can be a part of this great financial institution.
Will this change the culture?Expand
No. We love our members and want what is best for them because they're like family. Our culture is what helped us get to this point and is integral to how we continue to grow and serve our communities.
What does this mean for the safety and soundness of the credit union?Expand
Our credit union has been safe and sound for the past 86 years, by converting our charter, it will continue to be. However, a state charter does allow us to work more closely with the State of Texas regulating body to find ways to improve and protect our members' best interests.
What is the geographic area you will be able to serve?Expand
Initially, we will continue to focus on our existing markets, however, we will plan to move further west to accommodate those in the greater Houston Metro and beyond.
How is the credit union going to be any different than a bank?Expand
We are still a non-profit, financial institution, whose customers (members) are the owners. We do not answer to stockholders, our volunteer board represents our members and everything we do is for the overall betterment of our members.
Do any volunteers, board members, or staff benefit monetarily from this change?Expand
No, this will not impact our volunteer’s status or the salary structure of our employees.
I live outside of Texas. Can I still remain a credit union member?Expand
Absolutely! The state charter will have no impact on how you do business with us other than our ability to continue to offer new ways for you to bank with us more conveniently.
Do members get a say in this change?Expand
Yes. Members will have an opportunity to vote on May 5th at 2 pm at our Calder Branch, or you can pick up a ballot at any of our other branches beginning April 1st, 2022, and mail your vote to our independent auditor. Ballots must be received by the auditor, by the May 5th, 2 pm meeting deadline to be accepted.
How do I vote?Expand
A ballot was included in your March statement that was mailed at the beginning of April; however, you can also pick up a ballot at any branch. All ballots must be mailed to our independent auditor at Wathen, DeShong & Juncker, LLP, 4140 Gladys Ave, Suite 101, Beaumont, Texas 77706. Ballots must be received prior to the vote on May 5th at 2 pm.
What if I lost my ballot?Expand
If you have lost or misplaced your ballot, you can visit any of our branches to pick up a new ballot.
Can I vote more than once?Expand
No, you may only vote once. Any additional ballots received will be destroyed and not count.
Do I have to vote?Expand
No, you do not have to vote, however, we encourage you to exercise your right as a member.
When will we know the results?Expand
That will depend on the auditor and the number of ballots they receive but we hope to share the results with our membership as soon as we can.
