Entrust Financial Credit Union, located on Dabney Road, has requested a community charter. Photo by Michael Schwartz.
Following a busy year of small, one-off expansions, a local credit union is trying to take a bigger step to get easier access to new customers.
Entrust Financial Credit Union has asked state banking regulators for a community charter, a coveted designation that lets institutions target a broader potential customer base.
While the new charter would allow Entrust to market itself to the entire region, its CEO Lisa Lambrecht said it will stick strictly to expansion within its niche.
“Our mission is to serve Christian groups,” she said. “It’s not to go after the general market.”
Lisa Lambrecht
Entrust offers membership to churches and Christian organizations in the area. Its current charter forces it to apply for expansion and justify new additions one small group at a time. That means going through the regulatory ringer each time it adds a new group, no matter the size.
The $74-million credit union headquartered on Dabney Road wants to use the community charter to offer membership to multiple churches and Christian organizations at once.
“It removes the necessity to add each organization individually, and allows us to serve the greater Christian community,” Lambrecht said.
Founded 44 years ago, Entrust has grown to just under 10,000 members. It added 12 new Christian groups to its field of membership last year and three so far this year. Lambrecht did not want to discuss how many potential new members it might be able to add if the expansion is approved.
Many credit unions are founded with a focus on a narrow field of membership, and it is common for them to seek expansion. Some add specific employee-based or community groups. Others are tied to certain geographical boundaries.
But because credit unions are tax-exempt, many banks loathe community charters and argue that credit unions should have to pay the same taxes if they are reaching out to the same customers.
A handful of credit unions across Richmond have expanded to community charters in recent years, including Connects Federal Credit Union, Call FCU, Argent CU, Henrico FCU and Partners Financial FCU.
Despite its steady growth, Entrust operates with just one branch, handling many of its transactions electronically, Lambrecht said.
The credit union turned a profit of $104,000 in the first quarter and had a $312,000 profit for the full year in 2013, according to financials filed with the National Credit Union Administration.
Entrust’s community charter application was submitted this month to Virginia’s Bureau of Financial Institutions, part of the State Corporation Commission.
A decision is pending.
Entrust Financial Credit Union, located on Dabney Road, has requested a community charter. Photo by Michael Schwartz.
Following a busy year of small, one-off expansions, a local credit union is trying to take a bigger step to get easier access to new customers.
Entrust Financial Credit Union has asked state banking regulators for a community charter, a coveted designation that lets institutions target a broader potential customer base.
While the new charter would allow Entrust to market itself to the entire region, its CEO Lisa Lambrecht said it will stick strictly to expansion within its niche.
“Our mission is to serve Christian groups,” she said. “It’s not to go after the general market.”
Lisa Lambrecht
Entrust offers membership to churches and Christian organizations in the area. Its current charter forces it to apply for expansion and justify new additions one small group at a time. That means going through the regulatory ringer each time it adds a new group, no matter the size.
The $74-million credit union headquartered on Dabney Road wants to use the community charter to offer membership to multiple churches and Christian organizations at once.
“It removes the necessity to add each organization individually, and allows us to serve the greater Christian community,” Lambrecht said.
Founded 44 years ago, Entrust has grown to just under 10,000 members. It added 12 new Christian groups to its field of membership last year and three so far this year. Lambrecht did not want to discuss how many potential new members it might be able to add if the expansion is approved.
Many credit unions are founded with a focus on a narrow field of membership, and it is common for them to seek expansion. Some add specific employee-based or community groups. Others are tied to certain geographical boundaries.
But because credit unions are tax-exempt, many banks loathe community charters and argue that credit unions should have to pay the same taxes if they are reaching out to the same customers.
A handful of credit unions across Richmond have expanded to community charters in recent years, including Connects Federal Credit Union, Call FCU, Argent CU, Henrico FCU and Partners Financial FCU.
Despite its steady growth, Entrust operates with just one branch, handling many of its transactions electronically, Lambrecht said.
The credit union turned a profit of $104,000 in the first quarter and had a $312,000 profit for the full year in 2013, according to financials filed with the National Credit Union Administration.
Entrust’s community charter application was submitted this month to Virginia’s Bureau of Financial Institutions, part of the State Corporation Commission.
A decision is pending.