PHENIX CITY, Ala. -
Located near Phenix City, Ala., the credit union is a single sponsor of a mill that produces a coated board used in bottle carriers and folding cartons. The $33-million credit union has one full-time employee, Manager Mary Lou Shaw, and two part-time employees, and is a "family operation with an open door policy," Shaw said.
There are a number of factors for the high IRA balances. One is that there are 126 IRA accounts with about $8.6 million in IRA accounts, that currently pays 4.25% APR, which is the same rate paid for shares. When employees retire, they have considerable retirement funds.
"Employees get a lump sum and most of them put their retirement funds in the credit union," Shaw said. "The reason is loyalty and they feel safe with the credit union."
The sponsor considers the credit union an employee benefit and provides office space and utilities gratis. Most employees-90%-are members of the credit union and join when they are hired and sign up for direct deposit. Marketing consultants need not call.
"We don't do any marketing, never did," Shaw said. "Members come into my office and talk with me. Or they find out about IRAs through word of mouth. My office is located at the mill site in the woods, 25 miles from Phenix City."
The Mead of the Matter
Credit Union: Mead Coated Board FCU
Location: Phenix City, Ala.
Assets: $33 Million
Leading Stat: Avg. IRA Balance: $69,249
