NEEDLES, Calif. -
"We serve the Needles Unified School District, which is 5,877 square miles of the eastern Mojave Desert and a lot of snakes," said Esther Plemmons, the $14.3 million credit union's president/CEO. "Our potential field of membership is about 6,000, but only if some of them want to drive 150 miles to do their business."
Community Expansion
Desert Communities Federal, chartered in 1954 as Havasu Santa Fe Employees FCU to serve employees of the Atchison, Topeka and Santa Fe Railroad, expanded to a community charter in 1983, three years after Plemmons arrived in the 5,100-member community. The railroad had begun downsizing its workforce, reducing the basic crew for each train to two workers from four and putting a moratorium on hiring "for at least 15 years," Plemmons explained.
"We were completely dormant from 1980 to 1982 as the railroad downsized," Plemmons said. "Had we not been granted a community charter, we would have died."
Desert Communities survived and began building an impressive portfolio of services for its members from a plain-vanilla foundation originally limited to basic savings and lending products. A stagnant membership base meant the credit union needed to expand services to gain greater wallet share. Those financial products now number more than 30, including construction loans written in participation with High Desert FCU in Apple Valley, Calif. Desert Communities now serves 1,825 members who hold 2,800 accounts.
"We're a stepchild in the middle of the desert, but we continue to grow because our members are spoiled rotten," Plemmons said.
The credit union's growth over time has been on a slow, steady trajectory and loan growth continues to be a challenge given Needles' role both as a railroad community and a haven for retirees, characteristics that limit loan demand. The nearby communities of Goffs and Essex fall into the credit union's membership, but they have populations in the mere dozens of people, she said, making them less viable for supporting growth.
Needles is also served by branches of Bank of America and Stockmans Bank, the later of which formerly housed a branch of Washington Mutual, which closed in 2004 due to lack of profitability. When the branch closed, bank tellers sent many of their former clients to Desert Communities Federal with their deposits, causing the credit union's assets to swell from $14 million to $17 million in six months.
However, many of those deposits were comprised of "snowbird money" from residents who winter in the area, something Plemmons knew the credit union couldn't count on holding. Over the past three years, the credit union's asset base has returned to its former level, putting Desert Communities once again into a somewhat stagnant position.
Community Not Growing
"Needles isn't growing, so we're once again in the position where we have to broaden our horizons," Plemmons said.
For Desert Communities Federal, the broader horizons include the Lower Colorado River Valley communities of Laughlin, Nev., and Bullhead City, Ariz., each of which fall within a 25-air-mile radius of Needles. The credit union has applied to NCUA for a charter expansion to serve the two communities, which sit across the Colorado River from each other at the southern end of the Lake Mead National Recreation Area. The current combined population of 70,000 is estimated to grow to 110,000 within the next several years.
With 3% of is membership already located in Laughlin and 30% in Arizona, Desert Communities figures to have its boot toe in the door in the two states, making the credit union a natural to serve the two communities. If NCUA grants the expansion request, Desert Communities will be able to add more members than square miles for the first time in a long time.
And Plemmons isn't even giving the additional snakes she'd acquire a second thought.
