MANDAN, N.D.-While Williston, Watford City and Dickinson serve as the epicenter of North Dakota's oil boom, the entire state is feeling the effects.
More than three hours away in Mandan (just outside the state capital, Bismark), Railway Credit Union's loan volume is up 17%, deposits 10% and membership 5% year-to-date.
"In the Bismarck/Mandan area all of our growth isn't due to the oil, but it is helping," said CEO Paul Brucker. "What we're seeing here is an influx of ancillary capital coming out of there. Our credit union is starting to pick up some sidelines; some of our members are getting into the trucking front where they're going out and transporting oil and water from that area."
The $59-million RCU is union-based, serving employees of the local refinery, and Brucker said that the positive economic climate throughout the state is making a difference in the area. "Part of it is just that business creates business," he said. "The agriculture industry up here is good; there's opportunities for employment here."
RCU is working to manage its deposits, but is not having the same struggles as other CUs closer to the oil fields, said Brucker. While Railway CU is starting to approach its member business loan cap, a positive for it is unlike many other CUs, it has felt less pressure to raise employee wages than in the western part of the state. Moreover, values in the local housing market have not declined and loans are being made without requiring heavy amounts of marketing.
"We're constantly in a promotion mode, but I attribute it to good things creating good things," said Brucker. "We're cautiously optimistic that it's going to continue."
