Our History
Today, South Carolina Federal Credit Union is among the 100 largest credit unions in the U.S., with over $1.4 billion in assets and more than 156,000 members. We have 19 branches located near where our members live, work, worship and go to school. And we're part of network of 26,000 ATMs conveniently located throughout Charleston, Columbia, Georgetown, St. Matthews, Manning, Orangeburg-and nationwide. We've experienced phenomenal growth since our humble beginnings … growth made possible by our commitment to looking out for our members, and staying ahead of their needs.
Since the '30s, South Carolina Federal, a community chartered credit union open to all, has helped our members live more simplified, secure and fulfilling lives, and we will continue to manage our organization carefully to assure our members benefit for years to come.
The First Decades
For most Charlestonians, Jan. 31, 1936 was a day like any other-and for many of them, that meant getting through another day of the Great Depression.
But it was a day of great beginnings. Fourteen thoughtful, optimistic and forward-thinking navy shipyard workers each contributed $5 (for a total investment of $70) to create the Navy Yard Employees Credit Union. John B. Florio was the president. Little did they know that 70 years later, what they had started-and initially operated from a table in the shipyard cafeteria-would evolve into South Carolina Federal Credit Union, the thriving organization we know today.
The credit union quickly outgrew the cafeteria table, and soon after moved to Sterrett Hall, a Naval Yard building that no longer exists. The organization later moved to Building #58A on the Shipyard.
In 1944, the credit union's annual journal of activities (comparable to an annual report), explained its purpose this way: "The purpose of a credit union is two-fold: first, to promote thrift among its members by affording them an opportunity for convenient accumulation of their savings, and second, to create for them a source of credit for loans for provident and productive purposes at reasonable interest rates."
In January 1945, members of the Navy Yard Employees Credit Union paid interest of one percent per month on unpaid loan balances with payments made weekly or bi-weekly. They could pay off loans faster than required by the loan agreement, and as such, pay less interest with no penalty.
Loans were insured in case of the death or total permanent disability of the borrower. A three-member credit committee (elected by members) made the loan decisions. Loans could be for "doctor bills, hospital bills, emergency repairs on a home or automobile, payment of accumulated bills in general, purchase of clothing, furniture, or household needs, taxes, education and many other types of needs."
By 1947, the credit union had 841 members and assets of $25,548.60. In the year ending September 1950, the credit union, now with 986 members, had made 270 loans, ranging from $10 to $600. By 1952, 16,300 loans worth $1,725,254.25 had been made to members, and in June of that year, the 10,000th passbook was issued to M. Eddie Thames, a foreman laborer. The credit union's assets had grown to $450,222 by 1957.
The 1960s Bring a New Name and a Permanent Home
More growth was in store as the '60s began. In 1960, the credit union changed its name to the Charleston Naval Shipyard (CNS) Federal Credit Union when its field of membership was expanded to include Navy personnel who worked at the Navy Yard or were stationed or homeported at the naval base.
The newly renamed credit union moved around until it found a permanent home in 1965, when it moved to building #209, located just outside the McMillan Gate at the Shipyard. With this move, it became the first credit union in South Carolina to have its own facility. Rear Admiral E.H. Batcheller, commander of the Charleston Naval Shipyard, cut the ribbon during the dedication service on June 24, and the Sixth Naval District Band provided entertainment. It would remain the credit union's home for the next 20 years and was expanded in 1968 and 1971.
CNS opened its first branch in 1969, located on the Naval Station, where all naval vessels were docked and Navy personnel lived. It was a small, one-bedroom mobile home and it soon became apparent the structure would not accommodate the growing number of members. Later, the mobile home was replaced with a larger modular structure, known as Building #456.
Technological Changes in the 1970s
The 1970s saw more growth for CNS, as well as tremendous changes in the technology it used to serve its members. By 1970, record keeping was being handled by its data processing center in Columbia, enabling it to become the only credit union in the state to provide a monthly account statement. Also that year, a 3,000 square foot wing was added to its office to make room for "electronic machines that will handle virtually all the paperwork incident to making a loan." After the equipment was installed, 4,246 loans totaling $4.2 million were processed in a two-month period.
Later, a PBX telephone system with three additional lines was installed to better handle the approximately 500 calls the credit union received daily. A 24-hour telephone answering service was also added, as well as a WATS Line so members calling from outside the state would not have to pay long distance charges.
In September 1974, a new computer system went operational that made it possible to immediately give members a receipt for deposit or payment, as well as the new account balance. The previous system was always several days behind. A new service, Rite-on-Line, was introduced, allowing members to write their own loan at the point-of-purchase with the use of personalized drafts.
Technology was playing a bigger role in providing membership service, but the contributions of individual employees were still highly valued. On November 21, 1975, a banquet was held honoring Margaret Walker for her 30 years of leadership. She joined the credit union as its second paid employee on November 23, 1945 and has been called "the cornerstone of the credit union" who "made it what we have become." (She was still working as a loan officer when she passed away in 1989, weeks before her 70th birthday.)
Assets reached $20 million in 1972 and then more than doubled to $50 million in November 1976, when 2,000 members showed up for the celebration. Total membership had reached 44,525. In May, the credit union opened its second branch, located at the Naval Weapons Station.
On January 27, 1979, the ribbon was cut for CNS's new five-story main office building at 2175 Credit Union Lane located off Rivers Avenue in North Charleston. It housed a branch office with three drive-through windows, as well as the management offices and an in-house data processing system. There were also four other branches at the time, and assets were $67.8 million.
New Regulations Meant Big Changes in the 1980s
The 1980s were marked by the liberalization of federal regulations governing the services credit unions could provide, as well as their fields of membership.
Changes in the law enabled credit unions to become full-service financial institutions. CNS responded by offering checking accounts, money market certificates, high-yielding share certificates, trust accounts, money market checking accounts, credit cards, IRAs, home equity lines of credit, direct deposit, payroll deduction plans, discount brokerage services, first and second mortgages and student loans.
CNS opened its first ATM in 1981, located outside the main office in North Charleston, and by 1984, there were 14 of them throughout the area. In 1986, the credit union joined the Armed Forced Financial Network, a worldwide ATM network, so that military personnel could access their CNS funds from almost anywhere in the world.
That same year, telephone banking was introduced, which let members conduct 20 different transactions 24/7 through a touch-tone phone. During December 1986, 48,000 transactions were conducted through this system.
But the new regulations concerning fields of membership had an even bigger impact on CNS and changed, in many ways, its very nature. In the early 1980s, the National Credit Union Administration (NCUA) allowed credit unions to open their fields of membership to "unlike groups." This meant that, for the first time, credit unions did not have to limit their membership to groups that were part of the same type of organization or industry.
Given this new environment, several smaller credit unions merged with CNS during the1980s. These included the State Ports Authority Employees FCU, Greater Charleston Employees FCU, Champion Employees Credit Union (Georgia), Oxford Employees Credit Union (Georgia), GFA Employees Federal Credit Union (Georgetown Steel), Cambar FCU, MUSC Employees Credit Union, and Central Credit Union (Columbia). By the end of 1985, as CNS was nearing its 50th anniversary, it had assets of $221 million and served 103,844 members.
The 1980s ended with a bang when Hurricane Hugo roared into Charleston on September 22, 1989. The roof of the Shipyard branch was blown off, and there was some damage to the main office in North Charleston, but CNS's other facilities escaped major damage. Construction of the East Cooper branch had been completed just three days before the hurricane hit.
Although electricity was out throughout much of the area, CNS was open for business the Monday after the storm and the days following. On that first day, $1.35 million was distributed to members withdrawing funds from their accounts, and $11 million was handed out during the week. In order to conduct business, CNS spent $43,000 for generators. To further assist members in a time of need, the credit union forgave $83,000 in returned check fees and another $46,000 in service charges. Even after such generosity, the credit union's assets reached $351.6 million that year.
Weathering the Storms of the 1990s
An economic downturn and a foray into commercial banking created some worrisome times for CNS in the early 1990s. But the naming of Robert Dargan as president and CEO in 1992 was greeted with optimism and enthusiasm. Then, in 1993, the unthinkable happened: the Navy announced the closing of the shipyard and naval base, effective April 1, 1994.
The closing deeply touched the members and employees of CNS, many of whom had close ties with the shipyard and the base-they or their family members once worked there, or still did. The shipyard, after all, was where the credit union was and where it got its name. But because CNS had expanded its field of membership so much over the years, it was able to weather this loss. Recognizing the new environment, CNS changed its name, effective August 9, 1994, to South Carolina Federal Credit Union, making it more reflective of its membership.
The credit union continued to grow and expand. During the 1990s, South Carolina Federal moved into Georgetown and Columbia. New services were added, including debit cards, a call center and a 24-hour loan line. By the end of the decade, assets were just under $600 million, and membership was 126,852. In 1999 alone, South Carolina Federal added 35 select employer groups and 4,700 new members.
A Great Start to a New Century
The first half of the 21st century's opening decade has seen the credit union move rapidly into the digital and Internet age. Online banking was introduced in 2000, and by 2002, 22,000 members were accessing their accounts over the Internet. The options have since been expanded. Optical record storage is now used, and South Carolina Federal is the first credit union in the state to offer plasma displays, remote teller, and biometric technology in the same facility
In 2003, South Carolina Federal changed its status from a select employer group to a community-chartered credit union. This made eligible anyone who lives, works, worships, or attends school in Charleston, Dorchester, Berkeley, Georgetown, Clarendon, Calhoun, and Orangeburg counties and certain tracts in Richmond and Lexington counties to become members. That year, membership grew to 134,000.
In May 2004-just a month after Robert Dargan had to take a medical leave of absence-South Carolina Federal Credit Union reached a major financial landmark when assets hit $1 billion. In November 2004, Interim CEO Scott Woods, formerly the credit union's chief financial officer, was named president and chief executive officer. Staff and members were deeply saddened when Mr. Dargan passed away in March 2005.
A Bright Future
South Carolina Federal is involved in a number of charitable organizations, such as the American Red Cross, the Children's Miracle Network, the United Way, American Cancer Society, and the March of Dimes. It is poised for continued growth in terms of asset size, member service, and market expansion.
Although its size, membership and services have increased dramatically since those 14 shipyard workers came together for the common good more than 70 years ago, South Carolina Federal Credit Union has never ceased striving to stay one step ahead of its members' needs. We are looking at a great future, anticipating the needs of our membership and finding new ways to simplify their lives.
