Credit unions are not for profit cooperative associations that offer a variety of personal financial services exclusively to their members. People who join a credit union do so because of a “common bond”, such as a place of employment, an organization, or a church group.

Credit unions are not a new concept. Their origins go back to mid-19th century Europe. At that time, a group of local farmers pooled their resources to purchase supplies at a lower cost. They also agreed to place their excess earnings during periods of good harvest in a common account. In return, participants could then borrow from the “common account” at a lower interest rates during periods of poor harvest.

In the early 1900’s, the credit union concept of “people helping people” was introduced into the United States by Edward Filene, a Boston Merchant. The first U.S. credit union, St. Mary’s Cooperative Credit Association, was established in 1909 in New Hampshire and is still in operation. Today there are over 12,000 credit unions in the U.S. servicing the financial needs of over 67 million members. Unlike other types of financial institutions that must generate a profit for stockholders, credit unions are member-owned , not-for-profit, cooperative financial organizations. As such, excess earnings are returned to the members, primarily in the following returns:

• Competitive dividend rates paid on savings and investment accounts.
• Competitive interest rates on loans.
• The addition of new product and services.

The products and services offered and the methods used to conduct business have changed over the years. Credit unions now take advantage of today’s technology to meet the ever-changing needs of members. However, the basic philosophy envisioned by our founding fathers has not changed – that of “people helping people.”