Tag Archives: african american credit unions

2020 HBCU-Based Credit Unions Directory & Map


HBCU-based credit unions have been largely stagnant in the past four years since our last report in 2016. Assets have increased marginally by $1.7 million or a 1.9 percent. Only the top three HBCU-based credit unions saw increases in their assets of the eleven with all others declining. The asset decline was coupled as well with an acute decline in overall members with an almost 10 percent drop from 2016. With millions of dollars and thousands of potential accounts at their doorstep, it is extremely baffling how these institutions continue to struggle to grow. Especially in an environment of heightened social and economic desire to #BankBlack. The most glaring issue for these credit unions is a lack of FinTech investment. This includes everything from lack of a quality website, debit cards, bill pay, an app, and more. Things that would be considered basics at most financial institutions are still notoriously lacking at HBCU-based credit unions.

In 2012, we published a proposal for a merger among the 11 HBCU-based credit unions (or at the very least an alliance) that would immediately create one of the largest African American credit unions by assets and membership. You can read that here.

  1. Southern Teachers & Parents (LA) – $30.3 million
  2. Florida A&M University (FL) – $22.9 million
  3. Virginia State University (VA) – $10.2 million
  4. Howard University Employees (DC) – $10.1 million
  5. Prairie View (TX) – $3.7 million
  6. Councill (AL) – $2.9 million
  7. Savastate Teachers (GA) – $2.7 million
  8. Arkansas A&M College (AR) – $2.3 million
  9. Xavier University (LA) – $1.7 million
  10. Tennessee State University (TN) – $1.5 million
  11. Shaw University (NC) – $0.4 million

TOTAL ASSETS: $88.7 MILLION

MEDIAN ASSETS: $3.3 MILLION

AVERAGE ASSETS: $8.1 MILLION

TOTAL MEMBERSHIP: 14,953

MEDIAN MEMBERSHIP: 754

AVERAGE MEMBERSHIP: 1,359

Source: National Credit Union Administration

XULA FCU Growing, Virginia State University FCU In Crisis, And 2016 HBCU-Based Credit Unions Overall – Stagnant


Even if I knew that tomorrow the world would go to pieces, I would still plant my apple tree. – Martin Luther

header

2016’s HBCU-based credit unions are stuck in neutral. Eleven HBCU-based credit unions assets are unchanged from 2015 and still stand at $87 million. Membership saw a decline from just over 17 000 in 2015 to 16 546 in 2016. For comparison, Navy Federal Credit Union, America’s largest credit union has $73.3 billion in assets and 5.9 million members.

  1. Southern Teachers & Parents (LA) – $28.3 million ($28 million)
  2. Florida A&M University (FL) – $20.1 million ($19.6 million)
  3. Howard University Employees (DC) – $10.8 million ($11.3 million)
  4. Virginia State University (VA) – $8.6 million ($9.6 million)
  5. Prairie View (TX) – $4.8 million ($4.8 million)
  6. Savastate Teachers (GA) – $3.7 million ($3.6 million)
  7. Councill (AL) – $3.4 million ($3.4 million)
  8. Xavier University (LA) – $2.6 million ($2.4 million)
  9. Arkansas A&M College (AR) – $2.4 million ($2.3 million)
  10. Tennessee State University (TN) – $1.6 million ($1.4 million)
  11. Shaw University (NC) – $0.6 million ($0.5 million)

HBCU-based credit unions while having almost $90 million in assets are too top heavy as a collective. The top four HBCU-based credit unions have almost 80 percent of the group’s combined assets. Unfortunately, the fourth member of the group, Virginia State University Federal Credit Union, is dragging down the collective. Over the past two years VSU FCU has seen its assets decline almost 20 percent. VSU FCU is in the process of a transition in leadership after the long-term CEO Peggy Custis stepped down after a multi-decade run. In her place, Katrina Peerman, is serving as interim CEO while the board looks to make a long-term decision. That long-term decision, whether it remains Ms. Peerman or an outside choice could have a rippling effect that impacts the group as a whole. Can HBCU-based credit unions come into the 21st century? It remains to be seen whether they possess the leadership or aggressive vision required to facilitate

HBCU Money’s 2015 review and analysis of HBCU-based credit unions remain unchanged:

Unfortunately, there also seems to be no urgency by these credit unions to do the things necessary to increase their membership and assets. Students entering into HBCUs today may be more financially illiterate than a generation ago, but they have more complex financial needs thanks in large part to student loans playing such a large role into today’s higher education finance. Not to mention the reduced role that social security will play in their long-term retirement planning. An issue that should be prompting more HBCU-based credit unions to find ways to help students reduce student loan debt and start retirement planning while in college. A hard task to give this group given the limited financial products and services they offer leave HBCU-based credit unions minute opportunity to serve the needs of students, faculty, campus organizations, or even the HBCUs themselves. These limited products and services are largely an issue of lacking scale. Instead of a credit union with at least $87 million in assets, the median is $3.6 million amongst eleven with declining assets and membership. Instead of students, faculty, and institutions who travel more today than ever to conferences, tournaments, etc. being able to access their money at one of the eleven branches or through mobile app banking along the way, they are limited to just one insular branch with technology that at best reminds you of AOL dial-up. Holding onto students is even more difficult with most returning to their hometowns or nearest major city upon graduation and only returning to the campus at most once a year for homecoming. Incentive to keep banking beyond graduation? None.

Lauryn Hill has a wonderful song called the Ex-Factor that I think often describes African America institutional strategic behavior and with HBCU-based credit unions it seems no different. “It could all be so simple, but you’d rather make it hard. Loving you is like a battle and we both end up with scars.” I still believe with the right vision, an HBCU credit union could rival the Navy Federal Credit Union and give African America a place of financial safety instead of the scars we constantly end up with from predatory financial services that come into communities because we are left with such meager choices from our own financial institutions. It really all could be so simple, but more than likely we will continue to make it hard.

HBCU Money’s 2016 African American Owned Credit Union Directory


imgpsh_fullsize

All credit unions are listed by state and in alphabetical order. In order to be listed in our directory the credit union must have an African American designation. Click on the state to view the full list available. If the credit union has a website you can click on the name and go directly to their website.

There are 318 African American designated credit unions with assets totaling approximately $5.8 billion in assets or approximately 0.51 percent of African America’s $1.1 trillion in buying power. African American credit unions have a total of 863 670 members.

ADDITIONAL NOTES:

  • African American credit unions comprise 49.6 percent of Minority Serving credit unions and 5.2 percent of all US credit unions
  • The total assets for all US minority credit unions is $36.4 billion, with AACUs controlling 16.2 percent of those assets. Total combined assets for all US credit unions are $1.2 trillion, with AACUs controlling 0.48 percent of total American credit union assets.
  • AACUs average assets: $18.4 million ($17.9 million)
  • AACUs average number of members 2 725 (2 688)
  • AACUs median assets: $1.4 million ($1.4 million)
  • AACUs median members: 505 (491)
  • For comparison, Asian American credit unions have approximately 362 000 members and $4.6 billion in assets. Average and median assets of $83.1 million and $30.0 million, respectively.

African American Owned Credit Unions by State:

Alabama

Arkansas

California

Connecticut

District of Columbia

Delaware

Florida

Georgia

Illinois

Indiana

Kentucky

Louisiana

Maryland

Massachusetts

Michigan

Mississippi

New Jersey

New York

North Carolina

Ohio

Pennsylvania

South Carolina

Tennessee

Texas

Virginia

Virgin Islands

Washington

West Virginia

Wisconsin

 

 

Citicorp, JPMorgan Chase, And Others Plead Guilty – African American Banking Opportunity?


It isn’t the size of the dog in the fight, but the size of the fight in the dog that counts. – Woody Hayes

Wells-Fargo

I have to say if I was CEO at an African American owned bank or credit union right now I would be salivating at the news where two of America’s largest banks plead guilty to felony charges for manipulating currencies and rigging interest rates. Citibank and J.P. Morgan Chase control a combined $2.3 trillion in deposits worldwide. For perspective, total bank deposits in the United States total $9.3 trillion. This provides an opportunity to give a new narrative to African American communities about the value of banking with someone they know and trust. A bank/credit union owned by and for their community. Although not charged, I would also lump Bank of America and Wells Fargo into my attack, which given their recent settlements for predatory lending towards African American communities would not be a reach at all.

NPR reports, “Citicorp, JPMorgan Chase, Barclays, The Royal Bank of Scotland and UBS AG have agreed to plead guilty to felony charges and pay billions in criminal fines, the Department of Justice says. The offenses range from manipulating the value of dollars and euros to rigging interest rates.” The banks charged will be paying a $5.6 billion in fines combined, with Citigroup and J.P. Morgan Chase paying $1.26 billion and $892 million, respectively. Despite the heavy fines, no one will face actual criminal chargers. Bear in mind for perspective that Citigroup and J.P. Morgan Chase had 2014 net income of $7.3 billion and $21.8 billion, respectively. In other words, Citigroup will be paying 17.3 percent of its net income (profits) and J.P. Morgan Chase will pay 4.1 percent of its net income (profits). It is not clear however if they have to pay the fine at once or have been put on a payment plan.

By now, we have all heard the number – $1.1 trillion. That is the buying power of African America, but what we rarely hear is that less than 1 percent of that buying power sits in African American banks and credit unions (AABCUs). This continuously leaves African America in dire straits needing access to capital, but putting non-AABCUs like Citigroup, JP Morgan, Wells Fargo, and Bank of America in a position to take our money and then use it as a predatory weapon against our communities. One of a bank’s objectives is move the risk from those that own it onto other groups. The aforementioned banks not owned by us are doing their job and doing it well. We just keep aiding them by giving them a larger deposit base which in turn gets loaned back to us at predatory rates so that the owners can secure loans at discounted rates. Our communities pay more so that their communities can pay less. In other words, we deposit $1.00 in the bank and they deposit $1.00 in the bank. The bank now has $2.00 it can lend out. They will borrow $0.50 at 4 percent and our community borrows $0.25 (but needs $0.50) at 8 percent. But why have AABCUs not take advantage of this telling this narrative?

African American banks and credit unions have as a collective not done a good job of expounding their benefits to the communities they are in. Not nearly enough community outreach or customer acquisition investment has been done by African American owned financial institutions. The question if its the chicken or the egg in this case remains in flux. Do you spend limited resources to market to get deposits or do you wait for deposits then market to get more customers? Whichever approach is taken, it must be done with resolute commitment to increasing the AABCUs deposit hold within our communities.  It baffles me the number of AABCUs who are not even on social media. Are you kidding me? It is FREE. If AABCUs created internships for HBCU marketing and communication majors each semester they could have a millennial team of four or five students rotating every three to four months. And while many do not like them, I would hire club promoters and street teams to get the word out. Incentivize the community to become your word of mouth advertising in exchange for perks. In an interview I did with Donna Shuler, co-founder of Answer Title in Washington D.C. and former bank CEO, she said, “More community outreach starting when students are still in school. Banks and agents should use more images of African Americans in their marketing.” One thing that continues to plague African American organizations and firms is the copycat complex that ignores cultural differences between the way our community consumes products and services and the way other communities do. We do this despite Nielsen, an American global information and measurement company, having an entire site dedicated to the African American consumer trends and behavior.

We also have to stop being afraid to use what in hip-hop is known as “beef” with our counterparts. This is a competition after all. My marketing campaign would go something like this – “You know who has NOT  been fined for predatory practices against African Americans – (insert AABCU name).” Or I would have a list of the non-AABCUs who have been fined for their practices against our community and call it a public service announcement. People love a good guy, bad guy scenario. A mentor always said to me once to use what you have. Whatever it is that draws people to you – use it. In AABCUs case, it is using what the others have done to our community to your advantage of getting those deposits to switch institutions. It is also being more engaged in community activities where you can have the captive attention to get financial literacy and marketing message out.

African Americans continue to lose ground in wealth accumulation, our communities and neighborhoods continue to be at risk of gentrification because of lack of development and access to capital, and these are all a reflection of a weak banking system. We know what happened to Harlem and what is happening to places like Third Ward in Houston  among other places. This latest behavior by the non-AABCUs is just a long list of a wedge that AABCUs should be using to distinguish themselves among their core consumer demographic. They have given more than an inch to exploit and it is time we take the mile.

HBCU Money’s 2015 African American Owned Credit Union Directory


short-2015 AA CU Dir Image

All credit unions are listed by state and in alphabetical order. In order to be listed in our directory the credit union must have an African American designation. Click on the state to view the full list available. If the credit union has a website you can click on the name and go directly to their website.

There are 334 African American designated credit unions with assets totaling approximately $5.6 billion in assets or approximately 0.51 percent of African America’s $1.1 trillion in buying power. African American credit unions have a total of 847 752 members.

ADDITIONAL NOTES:

  • African American credit unions comprise 49.9 percent of Minority Serving credit unions and 5.2 percent of all US credit unions
  • The total assets for all US minority credit unions is $37 billion, with AACUs controlling 15.1 percent of those assets. Total combined assets for all US credit unions are $1.1 trillion, with AACUs controlling 0.51 percent of total American credit union assets.
  • AACUs average assets: $16.8 million (2014 – $13.1 million)
  • AACUs average number of members 2 538 (2014 – 2 455)
  • AACUs median assets: $1.4 million (2014 – $1.64 million)
  • AACUs median members: 474 (2014 – 585)
  • For comparison, Asian American credit unions have approximately 360 000 members and $4.5 billion in assets. Average and median assets of $83.1 million and $32.3 million, respectively.
  • Religious affiliated credit union make up 5.6 percent of US credit unions. African American religious affiliated credit unions comprise approximately one-third of all African American credit unions and almost one-fourth of all US religious affiliated credit unions.

ALABAMA

ARKANSAS

CALIFORNIA

CONNECTICUT

DELAWARE

DISTRICT OF COLUMBIA

FLORIDA

GEORGIA

ILLINOIS

INDIANA

KENTUCKY

LOUISIANA

MARYLAND

MASSACHUSETTS

MICHIGAN

MISSOURI

NEW JERSEY

NEW YORK

NORTH CAROLINA

OHIO

OKLAHOMA

PENNSYLVANIA

SOUTH CAROLINA

TENNESSEE

TEXAS

VIRGINIA

VIRGIN ISLANDS

WASHINGTON

WISCONSIN