Tropical Financial Credit Union

Tropical Financial Credit Union is a member-owned financial cooperative headquartered in Miramar, Florida. It was established in March 1935 by Southern Bell, the telecommunications company later associated with BellSouth and AT&T, to serve employees of the Bell System. The institution began as Miami Bell System Employees Federal Credit Union, with more than $800 in deposits and more than $400 in loans reported by the end of its second day. Its early operations were modest: the first board authorized the purchase of a cash box and rubber stamps, and the first part-time employee was paid 30 cents per hour. By the end of its first year, assets had reached $11,775. The credit union changed its name to Tropical Telco Federal Credit Union in 1939. It expanded steadily over the following decades, with assets reaching $100,000 in 1940, $400,000 by 1947, $2 million in 1956, $2.5 million in 1957, more than $5 million by 1965, and $10 million in 1968. During the 1970s, it broadened its product range beyond traditional share accounts. Share drafts, Visa cards, and ATM services helped turn the institution into a broader retail financial-services provider rather than a savings-only employee credit union. The Bell System divestiture in the 1980s reduced the size of the original employee base and created a challenge for membership growth. At the same time, increased banking competition in Florida put pressure on credit unions to expand their membership eligibility and product capabilities. In 1989, the board approved the addition of the first select employee group outside the core Bell System groups. This marked the beginning of a longer-term strategy of serving multiple employer groups and communities. During the 1990s, the organization grew to more than 260 employees, 10 locations, over 80,000 members, and approximately $400 million in assets. In 1995, its sixtieth anniversary year, it changed its name to Tropical Federal Credit Union. In July 2001, it converted from a federally chartered institution to a Florida state-chartered credit union and adopted its current name, Tropical Financial Credit Union. The state charter supported further expansion through defined communities as well as continued select employee group membership. The organization added operational and member-engagement programs in the early 2000s, including the Member Interaction Feedback Form, the Tropical Operations and Proposal System, and Tropical's Community Action Team. It also expanded outside conventional standalone branches, opening in-store locations in Walmart, Winn-Dixie, and Albertsons stores in 2003. Ten additional branches in 2004 doubled the size of its branch network. The credit union later added member business services for small-business owners and moved its headquarters from Miami-Dade County to the Miramar Park of Commerce in Broward County. Its assets exceeded $700 million in 2007. Tropical Financial operates under National Credit Union Administration oversight. Its reported services include checking and savings accounts, consumer loans, credit cards, refinancing and debt-consolidation products, retirement planning, small-business services, and financial education seminars. Membership is tied to specified South Florida counties, selected ZIP codes, and participating employer groups rather than to the general national retail-banking market.

Tropical Financial Credit Union traces its origins to Southern Bell's organization of an employee credit union in March 1935. The original institution was chartered under the Farm Credit Administration as Miami Bell System Employees Federal Credit Union. It started with a small employee-oriented membership base and limited resources, but experienced rapid early activity, reporting more than $800 in deposits and more than $400 in loans by the end of its second day. Its first board meeting dealt with basic operating needs, including the purchase of a cash box and rubber stamps. A part-time employee was hired during the first year, and assets reached $11,775 by year-end. In 1939, the organization adopted the name Tropical Telco Federal Credit Union. Asset growth continued through the 1940s and 1950s, reaching $100,000 in 1940, $400,000 in 1947, and $2 million by 1956. Katie Vachon became general manager in 1956 and joined the board the following year. In 1957, assets reached $2.5 million, the credit union moved into a new building on Giralda Avenue in Coral Gables, and a Credit Union Booster Club was formed. Assets exceeded $5 million in 1965 and reached $10 million in 1968. The 1970s brought a decisive shift from a narrow employee savings institution toward a fuller-service credit union. Tropical Telco added share drafts, equivalent to checking accounts, as well as Visa cards and ATM services. By the end of the decade, the institution had developed most of the capabilities associated with a full-service retail financial organization. Assets were reported at roughly $50 million in 1978 and had reached $54 million during the decade. The 1980s combined strong growth with structural challenges. The breakup of the Bell System reduced the number of employees available to join the credit union, while Florida's authorization of interstate banking intensified competition for deposits and loans. To diversify its membership base, the board approved its first select employee group outside the traditional Bell System groups in 1989. Greg Blount joined the credit union as president in 1987, according to the institution's historical account. By the 1990s, the credit union had more than 260 employees, 10 locations, over 80,000 members, and approximately $400 million in assets. It marked its sixtieth anniversary in 1995 by changing its name to Tropical Federal Credit Union. The organization continued adding select employee groups, eventually describing its membership base as including more than 200 participating companies. In July 2001, Tropical Federal Credit Union converted from a federal charter to a Florida state charter and changed its name to Tropical Financial Credit Union. The new charter permitted additional expansion through defined communities while preserving the select employee group model. The institution introduced several internal and community programs in 2002, including member feedback, operational proposal, community-action, and political-advocacy initiatives. In 2003, it opened branches inside Walmart, Winn-Dixie, and Albertsons stores. Ten additional branches in 2004 doubled its branch network, and the organization introduced Member Business Services for small-business members. Its headquarters moved to the Miramar Park of Commerce, and assets exceeded $700 million in 2007. The credit union's later operating model is centered on members who live or work in Miami-Dade, Broward, Palm Beach, or Sarasota counties, along with residents of certain specified Palm Beach County ZIP codes and employees of participating companies. It provides deposit accounts, lending, cards, payment access, planning, business services, and financial education. The institution is regulated by the National Credit Union Administration.

• 2007

  Assets exceeded $700 million

  [1]Tropical Financial Credit Unionen.wikipedia.org

  Reported assets surpassed $700 million.

• 2004

  Doubled its branch network

  [1]Tropical Financial Credit Unionen.wikipedia.org

  Ten new branches doubled the size of the existing branch network.

• 2003

  Opened in-store branches

  [1]Tropical Financial Credit Unionen.wikipedia.org

  The credit union expanded into branches located inside Walmart, Winn-Dixie, and Albertsons stores.

• 2001

  Converted to a Florida state charter

  [1]Tropical Financial Credit Unionen.wikipedia.org

  The organization converted from a federal charter to a state charter and became Tropical Financial Credit Union.

• 1995

  Adopted the Tropical Federal Credit Union name

  [1]Tropical Financial Credit Unionen.wikipedia.org

  The credit union changed its name during its sixtieth anniversary year.

• 1989

  Expanded beyond Bell System employee groups

  [1]Tropical Financial Credit Unionen.wikipedia.org

  The board approved the first select employee group outside the core Bell System membership base.

• 1987

  Greg Blount joined the credit union

  [1]Tropical Financial Credit Unionen.wikipedia.org

  Greg Blount joined the institution as president on August 1, 1987, according to the historical account.

• 1970

  Expanded into full-service financial products

  [1]Tropical Financial Credit Unionen.wikipedia.org

  During the 1970s, the credit union added share drafts, Visa cards, and ATM services.

• 1956

  Katie Vachon became general manager

  [1]Tropical Financial Credit Unionen.wikipedia.org

  Katie Vachon became general manager as assets reached approximately $2 million and joined the board the following year.

• 1939

  Renamed Tropical Telco Federal Credit Union

  [1]Tropical Financial Credit Unionen.wikipedia.org

  The institution adopted the Tropical Telco Federal Credit Union name.

• 1935

  Credit union chartered

  [1]Tropical Financial Credit Unionen.wikipedia.org

  Southern Bell organized the Miami Bell System Employees Federal Credit Union in March 1935 to serve Bell System employees.

A community- and membership-based financial cooperative offering retail banking, lending, financial planning, and small-business services to eligible members in South Florida.

• Deposits · 1935

  Share accounts

  The credit union's traditional member savings product. Share accounts represent member ownership and provide a place for eligible members to hold savings within the cooperative.

• Transaction accounts · 1970

  Checking accounts

  Tropical Financial expanded from savings-only services into share drafts, the credit-union equivalent of checking accounts, during the 1970s. Later account offerings included free and high-yield checking options.

• Lending · 1935

  Consumer loans

  The institution provides loan products to members, promoted as offering competitive rates. Its lending scope also includes refinancing and debt-consolidation solutions.

• Payment cards · 1970

  Visa cards

  Visa card services were added during the credit union's transition toward full-service financial operations in the mid-1970s.

• Small-business banking · 2004

  Member Business Services

  Introduced in the 2000s, Member Business Services extended the credit union's offering to members who operate small businesses.

• Financial planning

  Retirement planning

  Retirement planning is among the financial-planning services identified in descriptions of the credit union's member offering.

• 2003

  Expanded into in-store branchesStrategy

  Background

  The credit union was enlarging its physical reach as it served a broader membership base.

  Action taken

  It opened branches inside Walmart, Winn-Dixie, and Albertsons stores.

  Aftermath

  The in-store model was followed by the addition of 10 branches in 2004, doubling the branch network.

  Source

• 2001

  Converted to a state charter and adopted its current nameStrategy

  Background

  The organization sought additional room to expand its membership beyond its historical Bell System employee base.

  Action taken

  Tropical Federal Credit Union converted from a federally chartered institution to a Florida state-chartered credit union and became Tropical Financial Credit Union.

  Aftermath

  The state charter supported membership expansion through defined communities while allowing continued select employee group growth.

  Source

• 1989

  Broadened the field of membershipStrategy

  Background

  Bell System divestiture had reduced the size of the institution's original employee membership base, while competition among Florida financial institutions was increasing.

  Action taken

  The board approved the first select employee group outside the traditional Bell System employee groups.

  Aftermath

  The decision began a longer-term expansion of membership through participating companies and, later, defined communities.

  Source

1. 1Tropical Financial Credit Unionen.wikipedia.org