OXNARD, Calif.–CBC FCU has converted from a community charter to a multiple common bond charter, allowing for the addition of four underserved areas representing four-million people to its field of membership.
The credit union worked with CUCollaborate on the charter change and expansion.
According to CUCollaborate, in 2020, CBC FCU was in the process of outlining a new strategic plan and seeking to learn more about its members as well as identify potential avenues for growth. Daniel Bednar, VP-strategic development with the credit union, said that research revealed more than 60% of the credit union’s membership was considered “low-income.”
“We wanted to build strategies around serving this underserved community better,” Bednar said, “and we wanted that to correspond with our ability to grow membership.”
Under its now-former charter, CBC FCU served individuals living, working, worshipping or attending school in Ventura County, located just north of Los Angeles with a population close to 850,000.
“Within that market, however, growth opportunities to serve this community were limited,” the company said.
Response to Challenge
Faced with this challenge, the credit union turned to CUCollaborate, which specializes in field of membership consulting services specifically for the purpose of helping institutions expand their FOM with their regulator.
To achieve its goal of continuing t serve its current members while also expanding, the credit union submitted an ultimately successful conversion application to the NCUA, which included the additions of both underserved areas and select groups to its FOM, CUCollaborate stated.
“Under a multiple common bond charter,” CUCollaborate noted, an institution has the option of adding well-defined local communities and/or rural districts to an FOM, provided they qualify as “underserved.” To do so, an area must meet certain standards of economic distress, have proven unmet financial needs and be underserved by other depository institutions, the company said, adding that it may likewise add a combination of occupational or associational select groups, provided they adhere to the NCUA standards of sharing a common bond.
In this particular case, CUCollaborate said it helped CBC FCU prove both the underserved areas and groups to be added indeed met all necessary criteria, along with the institution’s ability and commitment to serving potential new members immediately.
What Expansion Includes
The expansion includes the additions of one underserved local community along with three adjoining rural districts covering parts of Kern, Santa Barbara, San Luis Obispo and Los Angeles counties. The combined area, with an estimated population of over four million, has the potential to increase CBC FCU’s field of membership drastically.
At the same time, the select group additions are designed to ensure current members who may reside beyond these new service boundaries will still remain eligible, CU Collaborate stated.
“We are naturally thrilled with the successful conversion and expansion,” said CUCollaborate Founder and CEO Sam Brownell. “The credit union has now substantially increased its potential field of membership, which will allow it to offer its services to more people across the entire area, while also retaining its current members. This progress is vital for any institution looking to grow and we are thankful CBC FCU trusted us to be a part of the process.”