Unlike banks, credit unions are not-for-profit, mutually owned and democratically controlled financial institutions. "Profits" are returned to members in the form of higher dividends and lower rates on loans. Any excess income (after reserve requirements are met) is retained in undivided earnings. Since credit unions are not stock-issuing corporations and have no means of creating capital other than through the retention of income, their undivided (retained) earnings serve as a cushion in lean years.
Credit Unions are unique financial institutions. They are able to operate in a highly efficient manner (charging less and paying more) because they work closely with sponsors and are operated to a large extent with the use of volunteers. The Board of Directors, Supervisory and Credit Committees receive no pay. They dedicate much of their free time to the Credit Union because they believe in what credit unions are all about-people helping people. Credit Unions have traditionally worked together for the common benefit of all members-sharing ideas, information and expertise.
St. Francis X. Federal Credit Union has provided these benefits to the Emmet County Catholic community for nearly 50 years.
Father Hugolinus Keiner, OFM, led a group of St. Francis Xavier parishoners who organized St. Francis Credit Union in the early 1950's. The Credit Union won its charter on April 5, 1951, and the members elected Eugene Coveyou, President; James F. Behan, Vice President; Marilyn Fettig, Treasurer; Father Hugolinus Keiner, Clerk; and Don Krussell, Director.
After a rocky start in the Church Monastery, the Credit Union saw steady but relatively slow growth in the 50's. Increasing membership necessitated more convenient hours and access. (The Credit Union was moved to Mitchell Street, hopscotching from the Knights of Columbus Hall over Leo's Bar, to an upstairs office in the Cook Electric Building, then to another rented office over Woolworth's Five and Dime.) The new decade brought a membership explosion, and by the end of 1962, St. Francis Credit Union boasted 1,543 members and $880,000.00 in assets.
The skyrocketing membership caused renewed space difficulties. A site at the corner of State and Petoskey streets presented itself as an ideal location for a new facility, close to the post office and newspaper, and to St. Francis Xavier Church and School. The staff moved into the newly-constructed offices on January 1, 1963. The cost of the project, including land, building, legal and architectural fees, furniture, and fixtures, totaled $40,000.00.
Steady membership and asset growth in ensuing years allowed for the addition of new products and services, and the Credit Union eventually became a full-service facility.
With assets swelling to over $24 million in the early 1990's, it became apparent that the State Street office was not adequate to serve the members, and the decision was made to build an additional office. After careful research and study of members' needs, property on M-119 between Brown Motors, and Toski Sands was purchased. The beautiful new facility opened for business on February 11, 1993, and members reacted quickly to make use of the convenient new office.
Throughout its rich history, St. Francis X. Federal Credit Union has remained a constant in the face of an ever changing, financial environment. While community banks are being swallowed by behemoths and their decisions taken out of local hands, St. Francis Credit Union has been, and will continue to remain, firm in its commitment to serve Catholic families in Emmet County.
