December 12, 2005
It's all in the name | Credit unions change their names to reflect an expanded field of membership
By Jennifer Hazard
During his four years as president of St. Joseph's Credit Union in Biddeford, Luke Labbe has often been asked if a person must be a parishioner of St. Joseph's Church to become a member; while that was originally the case, it's not now. Interest in the 42-year-old credit union pleases Labbe, but the thought that its name might limit future growth is a concern. For this reason, Labbe and the credit union's board of directors decided to start the process of changing its name in 2004.
Founded by church members and chartered by the state of Maine in 1963, the credit union began in the basement of St. Joseph's Church. Since then, it has merged with Sanford-based St. Ignatius Federal Credit Union, opened a larger branch office in Biddeford and expanded its charter to include members who live, work or go to school in York County. The growth has led to further expansion, with a second branch in Biddeford and two others in Wells and Sanford. A fifth branch is scheduled to open in Saco next year.
According to Labbe, the new name ˆ which is still under consideration ˆ will not only expose St. Joseph's Credit Union to a greater audience, but also include the growing number of members who do not have ties to St. Joseph's or the Catholic Church.
The decision to change a credit union's name to better represent its member base ˆ and encourage future growth ˆ is common in Maine and across the country. Patrick Keefe, vice president of communications at the Credit Union National Association in Washington, D.C., says credit union name changes are hardly a new phenomenon. "Initially credit unions were tiny institutions that served focused groups," he says. "As times have changed, they have grown to serve a larger group of people."
According to Keefe, this growth can be attributed to the increasing number of corporate changes and company closures throughout the United States. "For example, if mill XYZ closes and it has an affiliate credit union, the members can merge with a larger credit union or continue on their own," he says. "Either way, if the name doesn't fit the people it serves any more, it makes sense to create a new name that matches its membership."
When a credit union ˆ like St. Joseph's ˆ decides to change its name, the first step is to develop potential options. Labbe hired Stratham, N.H.-based Dardani Gasc Design to do so, and the firm presented St. Joseph's with three possibilities: Prosperity, PeoplesChoice and NorthStar Credit Union. The credit union in October mailed out brochures asking members to vote on their favorite name. A final decision will be made at the credit union's board meeting early this month.
A difficult transition?
Dexter Regional Federal Credit Union took a similar approach when it changed its name to Maine Highlands Federal Credit Union in January of this year. Following the closure of Dexter Shoe Co. in 2001, the credit union's board of directors decided the organization needed a name that would fit the region it serves, namely Piscataquis, Penobscot and Somerset counties. Rhonda Taylor, president and CEO of the credit union, says while the institution made the final decision on the name change, member feedback was equally important. "Members outside of Dexter welcomed the change, as we were no longer a spin-off of Dexter Shoe. However, older members did not want to see the name go," she says.
In order to include all members under the new name umbrella, the board decided on Maine Highlands, a name that the Maine Office of Tourism uses to describe the region.
Though Maine Highlands' 12,000 members seem content with the credit union's new identity, Taylor admits her staff still gets calls and letters addressed to Dexter Regional. "We just accept it," she says. "Even the staff slips up on the name from time to time. It's all a part of change."
While some credit unions change their name for identity's sake, others make the change with future expansion in mind. Portland-based Maine Medical Services Federal Credit Union, which serves employees of area hospitals such as Mercy, Maine Medical Center and Spring Harbor, decided to change its name in August 2004, after a merger with Unum-Provident affiliate Insurance Services Federal Credit Union. Director of Marketing Steve Lycette says the decision to change served two purposes: "We wanted the name change to be inclusive," he says, "but we also wanted the name to be broad enough so we could continue using it in the future."
Board members of the credit union decided on TruChoice Federal Credit Union, which was officially rolled out in January of this year. Lycette says existing members are generally happy with the name, and former Insurance Services members enjoy the added services the credit union offers.
Lycette estimates the cost of the change at $25,000, a sum that includes updating the credit union's website, marketing materials, logo and tagline, as well as researching and attaining a trademark. In the end, he believes the benefits of the name change far outweigh the costs. While the credit union serves medical and insurance employees and their families, its charter also covers anyone who resides, works or attends school in Cumberland County. And with the TruChoice name firmly in place, Lycette looks forward to marketing the credit union more aggressively to all of Cumberland County in the near future.
Still, whether a credit union changes its name to better reflect its identity or promote growth, the change is often difficult for vested members to accept. In the case of St. Joseph's, Luke Labbe hopes the results will be positive for the organization and its members. Early indications show that most members look forward to the change, as it will help increase the credit union's field of membership. However, members who were a part of St. Joseph's early days are troubled. "Some feel we're abandoning our Catholic history, but that's simply not true," Labbe says. "We're very proud of our heritage and hope the new name will bring us continued success."
Founded by church members and chartered by the state of Maine in 1963, the credit union began in the basement of St. Joseph's Church. Since then, it has merged with Sanford-based St. Ignatius Federal Credit Union, opened a larger branch office in Biddeford and expanded its charter to include members who live, work or go to school in York County. The growth has led to further expansion, with a second branch in Biddeford and two others in Wells and Sanford. A fifth branch is scheduled to open in Saco next year.
According to Labbe, the new name ˆ which is still under consideration ˆ will not only expose St. Joseph's Credit Union to a greater audience, but also include the growing number of members who do not have ties to St. Joseph's or the Catholic Church.
The decision to change a credit union's name to better represent its member base ˆ and encourage future growth ˆ is common in Maine and across the country. Patrick Keefe, vice president of communications at the Credit Union National Association in Washington, D.C., says credit union name changes are hardly a new phenomenon. "Initially credit unions were tiny institutions that served focused groups," he says. "As times have changed, they have grown to serve a larger group of people."
According to Keefe, this growth can be attributed to the increasing number of corporate changes and company closures throughout the United States. "For example, if mill XYZ closes and it has an affiliate credit union, the members can merge with a larger credit union or continue on their own," he says. "Either way, if the name doesn't fit the people it serves any more, it makes sense to create a new name that matches its membership."
When a credit union ˆ like St. Joseph's ˆ decides to change its name, the first step is to develop potential options. Labbe hired Stratham, N.H.-based Dardani Gasc Design to do so, and the firm presented St. Joseph's with three possibilities: Prosperity, PeoplesChoice and NorthStar Credit Union. The credit union in October mailed out brochures asking members to vote on their favorite name. A final decision will be made at the credit union's board meeting early this month.
A difficult transition?
Dexter Regional Federal Credit Union took a similar approach when it changed its name to Maine Highlands Federal Credit Union in January of this year. Following the closure of Dexter Shoe Co. in 2001, the credit union's board of directors decided the organization needed a name that would fit the region it serves, namely Piscataquis, Penobscot and Somerset counties. Rhonda Taylor, president and CEO of the credit union, says while the institution made the final decision on the name change, member feedback was equally important. "Members outside of Dexter welcomed the change, as we were no longer a spin-off of Dexter Shoe. However, older members did not want to see the name go," she says.
In order to include all members under the new name umbrella, the board decided on Maine Highlands, a name that the Maine Office of Tourism uses to describe the region.
Though Maine Highlands' 12,000 members seem content with the credit union's new identity, Taylor admits her staff still gets calls and letters addressed to Dexter Regional. "We just accept it," she says. "Even the staff slips up on the name from time to time. It's all a part of change."
While some credit unions change their name for identity's sake, others make the change with future expansion in mind. Portland-based Maine Medical Services Federal Credit Union, which serves employees of area hospitals such as Mercy, Maine Medical Center and Spring Harbor, decided to change its name in August 2004, after a merger with Unum-Provident affiliate Insurance Services Federal Credit Union. Director of Marketing Steve Lycette says the decision to change served two purposes: "We wanted the name change to be inclusive," he says, "but we also wanted the name to be broad enough so we could continue using it in the future."
Board members of the credit union decided on TruChoice Federal Credit Union, which was officially rolled out in January of this year. Lycette says existing members are generally happy with the name, and former Insurance Services members enjoy the added services the credit union offers.
Lycette estimates the cost of the change at $25,000, a sum that includes updating the credit union's website, marketing materials, logo and tagline, as well as researching and attaining a trademark. In the end, he believes the benefits of the name change far outweigh the costs. While the credit union serves medical and insurance employees and their families, its charter also covers anyone who resides, works or attends school in Cumberland County. And with the TruChoice name firmly in place, Lycette looks forward to marketing the credit union more aggressively to all of Cumberland County in the near future.
Still, whether a credit union changes its name to better reflect its identity or promote growth, the change is often difficult for vested members to accept. In the case of St. Joseph's, Luke Labbe hopes the results will be positive for the organization and its members. Early indications show that most members look forward to the change, as it will help increase the credit union's field of membership. However, members who were a part of St. Joseph's early days are troubled. "Some feel we're abandoning our Catholic history, but that's simply not true," Labbe says. "We're very proud of our heritage and hope the new name will bring us continued success."
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