What is a Credit Union?

You may already know that when joining a credit union, you do not become a customer, but rather a member. However, did you know you also become an owner?

This structure of member-ownership sets credit unions apart from all other financial service providers. It is a concept that goes back to 19th century Germany, when credit cooperatives were formed to meet the needs of struggling farmers. While economies have grown and evolved over time, the concepts of member-ownership and the cooperative remain as relevant today as they were then.

Credit unions are for the people and owned by the people. Your initial deposit of five dollars becomes your “share” of ownership in APGFCU. Each and every member has one equal share, regardless of his or her account balance. Whether it’s $5 or $500,000, all are equal owners. Each member-owner has a voice in the credit union. That voice can be exercised to help shape the credit union’s future. For example, members have the right to vote in the annual election of our board of directors. Members also have the opportunity to volunteer to serve on a credit union committee.

Because APGFCU is owned by its members, we have a member-centric orientation. We focus on how to best serve you and meet your needs. In order to do that, we listen. When we receive feedback from members, we take it into consideration. We review every letter and email that is submitted to us.

We also actively seek our members’ thoughts and opinions via periodic surveys and focus groups. This information is analyzed and used to impact decisions we make about products, services, delivery channels and more.

We strive to maximize the benefits of your membership by offering better rates, fewer and lower fees, and by investing in infrastructure to improve our services and convenience. In 2018, this was demonstrated by offering above-market deposit rates, including eight certificate specials, one of which had an annual percentage yield of 5.00%. We continued to meet our members’ lending needs by offering affordable ways to borrow, granting nearly $653 million in loans in 2018. In addition, we made significant investments in new branches and technology to improve service delivery. 

We believe all generations benefit from credit union membership, and we continuously strive for ways to deliver our message of financial capability to people of all ages. Throughout Harford and Cecil counties, we are actively involved in providing financial education to the children in our schools, imparting the knowledge necessary for a sound financial future. In addition, we offer financial education workshops and counseling throughout the year. In 2018 alone, we reached nearly 4,500 youth and over 3,200 adults through our financial education and counseling efforts.

We are driven to give back to our member-owners. Over the past year, this took many forms. In addition to the aforementioned rates and infrastructure improvements, we began waiving the foreign ATM fee that was previously charged when using an Allpoint Network ATM. With this change, our members can now enjoy truly free access to over 43,000 ATMs nationwide. Thousands of members benefited from 0% balance transfer offers and cash-back awards for Visa® credit cards, a low introductory rate on home equity lines of credit, and closing cost assistance for mortgages.

Our structure has served us well for the past 80 years, as our results show. APGFCU has the highest deposit market share out of all other financial institutions in Harford and Cecil County combined. In fact, nearly one out of every two households in these counties is a member of APGFCU. This success goes beyond offering the right products and services, and knowing how to navigate the marketplace. Other financial institutions can do the same. The difference is our unique, member-owner structure and cooperative focus. Each and every decision we make is with our 130,000-plus member-owners in mind.

Don W. Lewis
President/CEO