WATTS : Credit Union Gets a Loan of Its Own

In 1952, Pastor John Hicks of St. John’s United Methodist Church decided to set up a credit union so that his predominantly African American congregation would have a place to get loans denied them by other financial institutions because of their race.

For 42 years, the tiny credit union of roughly 220 members, with a balance that never topped $500,000, ran smoothly thanks to three dedicated church members, who received small stipends for their work.

But last year after installation of a new computer system that eliminated much of the institution’s cumbersome paperwork, all three announced they were retiring.

With no prospective replacement candidates on the horizon, the credit union’s board of directors feared they might have to merge with a larger credit service to survive--a disheartening prospect for the feisty institution proud of its independence.

But thanks to a program called Guardian Angel, the credit union can stay independent and its board has at least a year to find a new manager.

Under the program launched last fall, two employees from the West Covina-based First Financial Federal Credit Union come to St. John’s three times a week to run the credit union at no cost to the church. In return, Lisa Nelson and Sandra Cubie--who are paid by First Federal to perform the work--receive an education in the overall workings of a credit union that they cannot get at their vast, departmentalized office.

“This is an opportunity for our staff to develop new skills,” said Dennis Quinn, assistant vice president for First Financial. His institution has also loaned two other employees to a Gardena credit union as part of the program. “Our people are going to be enriched by this experience. It’s going to give them a broader perspective,” he said.

In addition to their day-to-day work at St. John’s, Nelson and Cubie are going to implement new services and more flexible loan policies to better cater to members’ needs. They are also going to help the board find and train an eventual successor.

“I’m glad we have people of the caliber of these ladies helping us,” said Arthur Alexander, who until earlier this year had worked at the credit union since it opened.

Current officials are also pleased.

“This is helping a small credit union move into 1995,” said Cathy Fields, the institution’s president.

The idea for Guardian Angel came from Hollie Nawa, a trade representative for credit unions with balances of less than $5 million.

She was helping to install the new computer system at St. John’s last year when news of the retirements came down.

Concerned that the credit union would have to merge to survive, Nawa approached officials at First Federal and asked if they would be willing to loan two employees to St. John’s for a year to keep the credit union running.

The West Covina institution agreed immediately, Nawa said. “I was dancing around my office I was so happy.”

Quinn said it is not unusual for one credit union to help another because there is no competition among such institutions.

“We’re not cutthroat. There’s enough business for all of us,” Quinn said. “We’re helping this credit union sustain its life and hopefully help them improve.”

Nawa, who also manages a credit union at a Gardena hospital, hopes to expand the Guardian Angel program.