Wings Financial FCU: New Charter TIPs Hand

APPLE VALLEY, Minn. – For Wings Financial FCU, the TIP charter it received in December 2003 enabling it to serve the entire air transportation industry has become as much of a hindrance to growth, as an enabler. That’s because NCUA rules will only allow the $1.6 billion credit union, formerly Northwest Airlines FCU, to merge with another credit union with the same charter–and there are only three others; American Airlines FCU, FAA First FCU and Continental FCU. Combined with the shrinking air transportation industry–which has lost 20% of its base over the past five years–the credit union’s growth potential is severally diminished, according to Paul Parish, president and CEO of Wings Financial. In fact, those four credit unions combined had virtually no member growth over the past five years. “I think our opportunities for growth are very limited,” Parish told The Credit Union Journal yesterday, of his ardent pursuit of the much smaller Continental FCU. Parish said the board of the airline credit union investigated other options, including converting to a community charter, but that would require giving up the existing groups they serve around the country, where their branch network is already situated. A conversion to mutual savings bank was also reviewed, but rejected. “It is not part of our plan now. We are focused on the TIP and our board of directors is committed to that direction,” he said. Parish is convinced a combination of the two credit unions would be the best thing for members of both institutions. “Frankly, neither credit union can do what the two can do collectively,” he said.