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Sierra Kondos

Special to the News

For 75 years, a Port Arthur bank has been serving their members and surrounding communities with personal and simple banking. This milestone is more than just the celebration of their history, it’s a tribute to the members, employees, and communities who have made it all possible for the Port Arthur Community Federal Credit Union to rise from the basement of City Hall and into their own buildings.

“We want to be part of this community,” Sabrina Miguez, CEO and loan manager said regarding Port Arthur Community Federal Credit Union’s mission to serve the mid-county citizens. The bank, like most small businesses, experienced a humble beginning as it expanded its membership, from city employees to the public, and began in City Hall’s basement.  

The bank is celebrating its 75th anniversary this year at its two locations, 3100 Central Mall Drive and the newest site, inside The Press Building located at 501 Proctor Street.

“We turn 75 years-old in November, but we’re trying to celebrate it this whole year,” Migeuz said. “So, we will be playing off the 75th with specials all year ranging from offering a mortgage rate as low as 5.75 percent to promotions with car loans. We haven’t set that rate yet, but we will be giving gift cards, $75 and $175 gas cards.”

According to the bank archives, 49 employees from the City of Port Arthur came together and decided to form a credit union that would effectively help the employees of the city in receiving loans and offer them a place to put their savings. These 49 employees each agreed to deposit $25 a share and a charter was granted for City Employees Federal Credit Union on November 28, 1950.

“The organizational meeting of the City’s Employees Federal Credit Union was held January 2, 1951,” Miguez said. “It was at this meeting that the first board of directors and committees’ directors were elected. Immediately following the organizational meeting, the first board meeting was held.”

During this meeting the first policies were put in place.

“It was agreed that the credit union would affiliate with the Texas Credit Union League and the Credit Union National Association, that the treasurer be bonded for $1000 and that the maximum share deposit limit be the legal limit,” she said. 

“It was moved and seconded that the maximum loan to a member upon their own signature be the legal limit, the rate of interest on loans be one percent a month on the unpaid balance, and that the loan and savings insurance would be provided to all members. 51 applications were approved for membership at this meeting.”

The City of Port Arthur’s personal office set aside two hours each day to transact members business, according to the archives.

“The elected secretary treasurer and assistant secretary treasurer both worked in this office which allowed them to handle the duties of the credit union with as little interruption possible from their present job duties,” she said. “A budget meeting held in January 1952 determined that the secretary treasurer and the assistant secretary treasurer be paid for their service to the credit union and the amount of 10 shares each, making them the first paid employees of city employees FCU.”

The credit union continued to be run by volunteers throughout the decade, according to the archives.

“This method of management resulted in a great deal of resignations from the various elected offices due to the interference of their regular job duties,” she said.

 Still the credit union flourished and by the end of the 1950’s it boasted 479 members, $177,000 in total shares, and 85 percent loaned out, according to the archives.

“The city gave the credit union its own office and hours of operation changed to Monday through Friday,” she said. “Federal examination reports at this time showed that the credit union was growing at an impressive rate.”

The beginning of the ‘60s marked a milestone for the credit union by attaining a quarter of $1,000,000 in assets. The office or assistant secretary treasurer became a full-time paid position, and the hours of operation changed again, according to the archives.

“In February of 1963, the credit union was asked to vacate their offices provided by the City of Port Arthur due to the installation of a new phone system,” she said. “The City needed the office space to store its equipment. An old office building no longer used by the city was transported to City Hall property and this became the new credit union. Not long after establishment in the new building it became necessary to hire two-part time workers to assist with the increasing operations of the credit union.”

 On Sept.18, 1964 the credit union faced an unforeseen setback when the city terminated 200 employees, according to the archives.

“This drastic reduction in the workforce was due to a stoppage initiated by the workers over a dispute over the amount of raise they were receiving,” Miguez said. “The next few years were trying for the credit union as it tried to control delinquencies on the loans of the terminated workers. Membership declined and the credit union rate of growth began to suffer. The board responded by establishing collection procedures and by forming an educational committee. 

These actions brought beneficial results and such that by May 1969 the credit union was showing its best growth in four years and delinquencies have been reduced to more acceptable percentages.”

By January 1970, the credit union had attained 585 members and $333,371 in total assets. A new City Hall building was built and an office space in the basement was offered for use by the credit union.

“This proved to be a convenient arrangement for the city employees and assisted the credit union in keeping expenses down since rent was not charged,” she said. “This office arrangement worked out so well that the credit union remained in the basement of City Hall until September 2004.”

In the 1980s membership growth started to level off in the middle of this. And the credit union was only growing at the rate of 2 percent per year. Several groups approached the credit union for membership, but all were declined by the board due to the interpretation of the credit union’s bylaws, according to the archives.

“As City Employees FCU moved into the 1990s, membership growth again became a struggle,” she said. “The primary field of membership of city employees had become saturated. The board of directors had to once again address the issue of adding new SEG’s to the credit union field of membership.”

But attracting new groups proved to be a problem period competition between credit unions increased as field of membership expanded and members started looking elsewhere for financial services.

“The traditional credit union that only offered savings and loans was becoming obsolete.” She said. “In 1995 two groups, the Port Arthur Department of Health and the Pleasure Island Commission, approached the board for permission to join the credit union. It was determined that since these groups were directly involved with the city of Port Arthur they would be allowed to join. In 1997 the board also extended membership to all family members related by blood or marriage with the SEG’s.”

At the beginning of 2003 the credit union officially changed their name to Port Arthur community Federal Credit Union, according to the archives.

“The credit unions were changing, and being in the basement, we were not visible,” she said. “We were not seen to nobody and that kept us from growing. 

Also, a diesel leak from the generator was giving us headaches. So, we moved into our current location and our membership rose 10 percent.”

The bank opened their second location in the Press Building to “get back to their roots.”

“We want to get back our employees, our roots,” Ortiz said. “It’s never been our desire to grow so big that we don’t know our people, that we don’t know our members. We’ve never wanted to grow so big that we didn’t know who we were serving.”

Jeff Ortiz, vice president and loan officer, said the bank is always “evolving.”

“The qualifications of becoming a member,” Miguez said. “Is to live, work, worship, or go to school in the city of Port Arthur.”

And the perk of being a member?

“We’re always adding new products,” he said. “We’re always making sure our members can contact us, whether we’re closed, and just recently, we had a winter storm, and they were still able to call us. We were still able to fulfill their financial needs while we’re working from home. So, we’re always reachable thing. Our goal is to do personal service versus just adding a service. We want it to be personal service to our members, if that makes sense. We want to know them when they walk in, when somebody strange walks in, we want to say, ‘Hey, welcome. Who are you?’ We try to make it a personal atmosphere. So, we know as much as we can about everybody. I mean, we want to be part of this community. We don’t need to expand. We enjoy this community, and the workers in it to make sure their life, their financial life, is strong. That’s what we’re about.”

For more information visit, www.pac-fcu.com.