Omaha-based SAC Federal Credit Union' has been granted a charter conversion so it can serve the neighboring community.
Under the conversion, approved by the National Credit Union Administration, the $315 million-asset credit union can market services to 99,000 people who live or work in an area south of Omaha.
SAC Federal now serves about 37,000 accounts. Its customers are mostly current and retired civilian and military employees of Offutt Air Force Base and the Strategic Air Command, as well as family members.
Widespread Phenomenon
Like many other military credit unions throughout the country, SAC Federal has been hard hit by budget cutbacks.
The Strategic Air Command used to control air bases throughout the United States, but it was eliminated in June 1992. Cutbacks reduced base personnel from 14,228 in September 1991 to 11,610 in September 1992.
SAC Federal needed to change to survive, said president James Guretzky. Reduced use of an automated teller machine on the base illustrates the effect of the cutbacks, he said. Before June 1992, the machine had from 4,000 to 5,000 transactions a month; since then volume has fallen by half, he said.
Mr. Guretzky said he had been working toward the conversion before another Nebraska credit union was sued over expansion similar to what SAC Federal is planning.
In October, Nebraska bankers sued Alliance-based Western Heritage Credit Union, a state-chartered institution, for expanding services to people who live or work in the state's western panhandle.
Mr. Guretzky said that thought he had been long aware of the dispute, "you can't operate an organization based upon fear of whether you'll get sued."
The conversion was approved by the board of the National Credit Union Administration during a closed meeting last month. Credit unions serving communities of more than 50,000 people cannot be chartered without board approval.
Bigger Worries
Donald Mahan, president of Omaha-based Bell Federal Credit Union, said he expects the conversion by SAC Federal to increase competition, but he did not seem very worried.
"We compete with the larger banks in town, and I consider them a stronger competitive force," said Mr. Mahan, whose institution has assets of $183 million. "Truthfully, I'm more concerned about Bank One coming in '94."
