NCUA News Release

NCUA Charters Faith-Based Community Development Credit Union in Alabama

Jefferson Community Development Federal Credit Union in Birmingham is first credit union chartered in Alabama since 1996

January 16, 2003, Alexandria, Va. – The National Credit Union Administration (NCUA) has issued a charter for Jefferson Community Development Federal Credit Union, a faith-based credit union in Birmingham, Ala. A portion of Jefferson County residents who live, work, worship or attend school in the northeast corner of the county will be eligible for membership in the credit union sponsored by Guiding Light Church. The charter was finalized Dec. 9, 2002.

“Faith-based credit unions are providing their members, neighborhoods, and communities with greater access to affordable financial services,” said NCUA Chairman Dennis Dollar. “Jefferson Community Development Federal Credit Union is the newest faith-based credit union and is positioned to be a valuable partner for its members’ financial needs. It is a natural extension of the outreach efforts of the churches to make a positive difference in their communities.”

In early 2002, Dollar announced NCUA’s Access Across America initiative, which focuses on creating economic empowerment opportunities for people from all walks of life. Included in the Access Across America initiative is a faith-based credit union component which focuses on the chartering and expansion of faith-based credit unions across America.

“NCUA’s emphasis on the role faith-based institutions, such as faith-based credit unions, can play in their communities across America is very much consistent with the Bush administration’s Faith-Based and Community Initiative program,” said Dollar. “As chairman, I am extremely pleased to see our Board and agency continue to support such an important initiative as Access Across America that addresses in a positive and proactive way many of the economic issues facing residents of underserved and unbanked neighborhoods.”

NCUA staff facilitated the Jefferson Community Development Federal Credit Union charter; working with organizers to ensure the credit union would meet NCUA’s safety and soundness requirements and be able to serve its members. As a federal credit union, Jefferson Community Development Federal Credit Union will be insured by NCUA, offering its members up to $100,000 in coverage backed by the full faith and credit of the U.S. government.

Credit unions are not-for-profit financial institutions owned and operated by their members. Faith-based credit unions are sponsored by a religious organization. There are more than 400 federal faith-based credit unions with assets exceeding $2 billion. Credit unions provide a safe place to save and borrow at reasonable rates. A volunteer board elected by members manages each credit union. Credit unions exist to serve their member-owners and are often able to offer favorable rates on savings and loans. To join a credit union, a person must be eligible for membership. Members of each credit union share a “common bond” such as being employed by the same company, belonging to the same organization or church or living in the same community.

The National Credit Union Administration, governed by a three-member board appointed by the President and confirmed by the Senate, is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 80 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.