Published By CUEvangelist – October 28, 2024

RE: Branches – Ready To Pounce

Location: Peru, NY
Asset Size: $52 Million
Field of Membership: Community
President/CEO: Maggie Pope

The $52 million asset sized Mountain Valley Federal Credit Union (Mountain Valley) is a small, community-based credit union in Peru, New York. Despite its size, Mountain Valley has seen significant growth by adding new branches and expanding its reach in the community. The decision to switch from a specialized SEG-based membership to a community charter has allowed the credit union to thrive and serve a larger population.

Over the past five years, Mountain Valley has successfully opened three new branches, increasing both membership and loans. This amazing expansion brought the credit union from 1,200 members to over 5,000 members. However, it’s important to note that these great opportunities  and locations didn’t just fall in the credit union’s lap. Rather, the strategy of doing extensive research on the communities that were targeted was key.

Instead of planning every branch in advance, Mountain Valley kept its financial position strong and was ready to act quickly when opportunities arose. By focusing on underserved areas and targeted locations, such as areas with few financial institutions, this strategy ensured the success of these new branches.

Here are a couple of the credit union’s success stories:

• Reopening a Bank Location: The credit union secured a property from a closing bank branch. With minimal staff, this branch has quickly become one of the busiest locations.

• Supermarket Branch in Wilmington: A small, two-person branch was set up in a vacant storefront next to a supermarket. This branch now serves as both a call center and storage facility, highlighting how efficient use of space can benefit operations.

Mountain Valley’s growing presence has drawn the attention of local leaders, who have begun requesting new branches in their towns.

The staffing at Mountain’s branches is flexible to meet demand. Most branches operate with two or three employees on busy days. However, if only one employee is available, the branch offers drive-thru-only services to ensure smooth operations.

Additionally, the credit union’s leadership emphasizes building a strong staff team. Employees who align with the credit union’s vision often grow into key roles, helping the credit union develop both its workforce and services.

Each new branch costs a little under $1 million to open, but the rapid growth in membership and loans has helped rebuild capital quickly. Initially, the credit union’s capital ratio dropped from 12% to 8% after the branch openings. However, thanks to the success of these branches, the capital is already back up to 9% and climbing.

With the branch network now in place, Mountain Valley is shifting its focus to enhancing products and services. This includes expanding digital services like AI-based web chat and offering IRA accounts. The leadership team, in close collaboration with the board, is committed to continued growth and community outreach.

Mountain Valley FCU has proven that small credit unions can succeed by being financially prepared, staying open to new opportunities, and focusing on serving their community. With a growing branch network, a solid capital position, and a motivated staff, the credit union is well-positioned to continue meeting the needs of its members. As President/CEO Maggie Pope puts it, the key to success “is working with your board, sharing a vision for growth, being financially and mentally prepared to build new branches, doing your research, and working to build your presence in communities that you want to serve.”

The above profile was curated from Mountain Valley Federal Credit Union: “Branches: Ready To Pounce”, a submission in the Blueprints for Small Credit Union Success published by America’s Credit Unions – March 2024