The U.S. credit union movement
At the median, membership in New Hampshire credit unions declined 1.5% year-over-year in the first quarter of 2023, according to data from the
Executives from New Hampshire credit unions attribute the statistics to a number of factors, including a competitive threat from banks and the culling of inactive accounts. Regardless of the cause, any meaningful decline in credit union membership is bound to raise eyebrows in the Granite State, where the first U.S. credit union, St. Mary's Cooperative Credit Association, opened in Manchester in 1909.
Members First Credit Union in Manchester had 12,557 members at the end of the first quarter, less than a 1% increase compared with a year earlier, according to call report data from the NCUA.
Members First CEO Courtney Fifield said he has
"We have been losing market share to national and regional banks moving into our three largest markets of Manchester, Nashua and Concord," Fifield said.
The $252 million-asset Members First continues to invest into its target market area and build relationships with the communities it serves. And at the same time, Fifield said Members First is implementing specific strategies to drive membership growth.
First, the credit union is focusing on employee retention. The idea is that if Members First employees aren't carrying the message into the community, nothing else matters.
"My tenure as CEO started by sitting down with every single employee to discuss the business from varying employee perspectives," Fifield said. "In a job market like the one we are currently facing, investments in your employees pay the best dividends."
New Hampshire Federal Credit Union in Concord had 13,545 members at the end of the first quarter of 2023, a 4% decrease compared with a year earlier, according to call report data from the NCUA.
Emerson said although he can't speak to the entire state, he believes member statistics for the $333 million-asset credit union don't represent a migration to banks.
"This is a direct result of aggressively managing dormant and inactive accounts, of which we have many," Emerson said. "Although [purging] may seem to have a negative perception of member growth, it actually has a positive effect on net income, product penetration and operational efficiencies."
In terms of future growth, New Hampshire FCU will be rolling out some programs in the next couple of weeks designed to increase membership.
"Our new indirect auto lending program has already led to new membership. Once we are finished with purging dormant and inactive accounts, it will be easier to see the positive membership growth we are experiencing," he said.
Denise Barstow, president and CEO of $677 million-asset Granite State Credit Union in Manchester, said GSCU has pursued a steady growth pattern over the years through branch expansion, rebranding and member communication efforts "which we are quite pleased have garnered good results," she said.
Granite State had 50,343 members at the end of the first quarter of 2023, a 7% increase compared with a year earlier, according to call report data from the NCUA.
Fifield from Members First said the credit union is working to improve its customer experience and satisfaction as another way to drive membership. The credit union is investing in its digital platforms, providing user-friendly interfaces for members to access its services.
"Additionally, we are offering personalized support and tailored solutions to meet the specific needs of our existing and potential members," Fifield said. "We are actively promoting our services through targeted marketing campaigns to attract new members, including advertising across various channels such as social media and online platforms."
A realistic expectation for growth in the next four quarters would depend on several factors such as market conditions, the competitive landscape and the effectiveness of its strategies, according to Fifield.
"While it is challenging to provide an exact figure without specific data, a reasonable expectation would be a steady increase in membership, in the low single figures," he said.
