A Look At The Smaller Side
In this installment of a continuing series, Credit Union Journal highlights small CUs across the nation and the particular challenges they face.
BARSTOW, Calif. — Since the late 1800's almost all of California's trains have passed through this Southern California transportation hub, and since 1954, the $8 million-asset Barstow Railway Employees Credit Union has been serving its members in and around the Barstow area.
This small credit union doesn't have an ATM machine, has one location in a commercial business building and employees three full-time staff members, including CEO Yvonne Saavedra.
"We were started by 50 Santa Fe [Railway] employees," Saavedra said. "The CU started out as Barstow Non-Ops, which was only for the non-operating side of Santa Fe. In the '80s the CU opened up to all employees of Santa Fe. We only deal with BNSF payroll and ACH, but our vision for the future is to grow and expand the credit union."
No Cash On The Premises
Saavedra said that the credit union has no cash on the premises and they are in the planning stages of offering checking accounts to its railroad members.
At this time the credit union located near the Mojave Desert has 1618 members — all who are BNSF (Burlington North Santa Fe) workers and their immediate families. The institution closed out 2013 with a 0.39 % ROA .
The credit union offers members signature loans, automobile loans, loans secured by shares and recreational loans.
Auto loans are the most popular, according to Joyce Jones, head teller/collections department. "Since we are a small credit union, we have the opportunity to do so much more for our members than most credit unions," she said. "For example, when a member applies for a loan and does not meet certain requirements, we take the time to explain why they did not meet such requirements and assist in solving said issues. These issues are mostly the lack of knowledge about credit scoring, debt ratio, and delinquencies. We explain the credit reports from front to back and offer suggestions as to how corrections can be made. This is my favorite thing to do."
Carl R. Ice, president and CEO of BNSF said that credit unions like BRECU are good for the railroad employees.
"There are a lot of uncertainties for employees and their families in this day and age," Ice said. "For a credit union to serve the BNSF family as long as the Barstow Railway Employees Credit Union has is quite an accomplishment."
The credit union has faced big issues in the past few years.
Former CEO Arrested
In 2010, Gina Samorajski, CEO of BRECU from 2005 to 2008 was arrested and charged with making "false entries to deceive employees or officers of a credit union and receiving or possessing credit union property with intent to defraud," according to the Desert Dispatch, a Barstow newspaper. The ex-CEO was released one day after her arrest and no charges were filed. Samorajski claimed she was terminated from the credit union at the board's request in 2008. She later filed a civil wrongful termination lawsuit.
Saavedra declined to comment about her predecessor.
One very positive note for the tiny CU is that many problems that plague larger institutions such as retailer security breaches and regulatory issues do not concern them.
"We are currently not an 'online' CU, therefore, the security breach did not affect out CU or our members," Saavedra said. "Our Board of Directors is made up of seven credit union members who are mostly retired workers from BNSF. We don't view our regulatory issues as a burden."
