Why a Credit Union - First Community Federal Credit Union

Credit Unions are not-for-profit financial cooperatives, designed to offer lower cost financial services to it’s member-owners. Credit Unions have flourished for over 150 years with the philosophy of people helping people succeed financially. Earnings are passed back to participating members in terms of lower fees, better rates on deposits and loans and convenient services.

Credit Unions like First Community Federal Credit Union pride themselves on knowing their members, working proactively for the members, and educating members for a lifetime of better financial health.

Your deposits are federally insured up to at least $250,000 per depositor and backed by the full faith and credit of the United States Government – National Credit Union Administration. Ask about additional NCUA insurance coverage on your Individual Retirement Accounts.

First Community Federal Credit Union’s History

On August 10, 1938 seven individuals signed the organization certificate for the Parchment Employees Federal Credit Union. This certificate was then forwarded to the Governor of the Farm Credit administration in Washington D.C., where Mr. C.A. Stewart approved and issued an operating charter for this new credit union. The seven individuals who signed and established this new credit union were Edwin Meader, J.H. Sinclair, W.D. Brownell, E.L. Sherk, Louise Cunningham, Lester E. Hubbard, and Don E. McDowell. This newly formed credit union’s field of membership consisted of the employees of the Kalamazoo Vegetable Parchment Company in Parchment and Kalamazoo, Michigan; members of their immediate families; and any organization of such persons.

On September 13,1938 the first organizational meeting of the Parchment Employees Federal Credit Union was held in the community room of the company. Mr. Don E. McDowell was the temporary Chairman and Mr. Irving Drown was the clerk. The first order of business was to establish the size of the board of directors, which was set to nine. The nominating committee presented fourteen candidates. Elected to the board of directors were Don E. McDowell, Oscar Hunt, Paul Story, Ray White, Merle Wood, Howard Pierce, Irving Brown, Lynn Spath, and Willis Taylor.

Elected to the credit committee were Jack Sinclair, Louise Cunningham, George Martin, Eugene Sherk, and Elmer Wedell. Elected to the supervisory committee were Don Brownell, Amasa Drown, and George Bertweit. At the credit union’s board of directors organization meeting, Don McDowell was elected President, Ray White elected Vice President, Irving Drown elected Treasurer, and Howard Pierce elected Clerk. The credit union was officially ready to accept deposits and make loans to its membership.

The board of directors established that the first deposits accepted could not be for more than $250.00 total. At this time deposits were not federally insured nor did they earn dividends. Loans were granted for not more than $1000.00 and had to be repaid in twelve months, and the interest was one percent per month (12.00% A.P.R.). The employment office of Kalamazoo Vegetable Parchment Company was also the official credit union office. The company through the efforts of Merle Wood donated the office space, files, and equipment used by the credit union.

The assets of the new credit union at the end of its first calendar year, December 31,1938, were $5400.06. It had 155 members, it was alive and functioning as a credit union with its philosophy to serve its members with loans and savings programs.

Since its founding, the Credit Union was lodged in the offices of Kalamazoo Vegetable Parchment Company. There were many advantages for this new Credit Union to have its offices in the company. The company and its management were very supportive of the Credit Union and its policies. There is no doubt that without the company’s help the Credit Union would not have survived its formative years. A memo dated January 19, 1944 to Mr. R.A. Hayward from Thomas W. Peck discussing the financial status of the Credit Union states "We (the Company) cannot afford to let the Credit Union go out of existence, it is too valuable an adjunct to our personnel work and the orderly settlement of employees’ financial problems."

January 1958 the Credit Union moved its offices to a remodeled house on the corner of Riverview Drive and Island Avenue. The assets of the Credit Union had grown to $1,280,679 and it had 2,607 members. In August 1966 the Credit Union changed its name from Parchment Employees Federal Credit Union to Brown Company Employees Federal Credit Union to reflect the new name of the paper company.

The Credit Union continued to grow and serve an ever-expanding membership. In June 1972, the Credit Union moved into its new office building on the corner of Riverview Drive and Hercules Avenue. This Building was built to service membership needs for the next 25 years.

In October 1972, the Credit Union was granted its first charter expansion since 1938 and it also changed its name. The basic charter was changed from an industrial based common bond to a community based common bond. The name was changed from Brown Company Employees Federal Credit Union to Parchment Community Federal Credit Union. In October 1977, the charter was again expand, this time to include Gull Lake and Comstock School Districts. The name was also changed to First Community Federal Credit Union that reflected the larger field of membership.

In December 1978, the charter was expanded to include the Galesburg-Augusta School District. June 1990, the charter was expanded once more to include additional parts of Cooper Township and parts of Kalamazoo and Oshtemo Townships. In April 1998, the charter was expanded to include all of Kalamazoo County.

In August of 2003, First Community Federal Credit Union moved its primary operating facility to 550 S. Riverview in Parchment. In September of 2004, a charter expansion was granted once more to encompass the 9 southwestern counties of Michigan: Allegan, Barry, Berrien, Branch, Calhoun, Cass, Kalamazoo, St. Joseph and Van Buren. In 2005, Plainwell Area Credit Union (Allegan County) became a part of First Community Federal Credit Union. In 2006, United Savers Federal Credit Union (Calhoun County) joined forces with First Community FCU. In 2007, First Community FCU added a Mattawan branch, bringing us into Van Buren County. Today, First Community Federal Credit Union serves over 50,000 members, has assets in excess of three hundred million dollars, and is operating ten full service offices. (Data effective April, 2009)