A historical overview of a 50-year-old financial institution and pillar of community life (11/18/01)

A historical overview of a 50-year-old financial institution and pillar of community life

CHICAGO - On May 12, 1951, a group of 10 individuals who had once been part of the cooperative movement of Ukraine, not long after their arrival in the United States, signed the Organization Certificate of Selfreliance Federal Credit Union, thus laying the groundwork for creation of a new financial institution in Chicago. These pioneers were: Antin Artymovych, Alexander Atanowsky, Bohdan Bilynsky, Joseph Datzko, Gregory Masnyk, Roman Mycyk, Stefan Sambirsky, Illya Semianczuk, Walter Tymciurak and Elias Wytanowycz.

The certificate was approved June 20 by the director of the Bureau of Federal Credit Unions, and on July 2, 1951, at the credit union's founding meeting, William T. Breitzke, representing the Illinois Credit Union League, presented Federal Credit Union Charter No. 7346 to the credit unionís newly elected Board of Directors.

Illya Semianczuk was elected its first president, and Omelan Pleszkewycz became the credit union's first treasurer/manager.

The first board of directors also included: Antin Artymovych, vice-president; Roman Mycyk, secretary; Oleksander Nahorniak, Mykhailo Semkowych and Osyp Datzko, members; and Volodymyr Popadiuk, chairman of the Credit Committee.

Selfreliance Federal Credit Union's first office was nothing more than a desk on the second floor of the Ukrainian Besida community center. For two and a half years, from July 2, 1951, through December 31, 1953, the members of the board of Selfreliance, together with the manager, acted as tellers, loan officers, bookkeepers - all on a volunteer basis, in their "spare time," after full days of work at their day jobs.

Documentation for the deposits and loans of the ever-increasing membership had to be completed, to the satisfaction of the federal examiners, who kept a close watch on this new credit union. Keeping complete and accurate records was the responsibility of the manager - in addition to overseeing the daily office operations.

As credit union services and its premises expanded in the Besida building the National Credit Union Administration (NCUA) mandated that Selfreliance hire a full time employee. In 1953, Mr. Pleszkewycz became salaried. In 1955, when the credit union had grown to $650,000 in assets and 1,100 members, two additional full-time staffers were hired. In 1955, following the untimely death of the credit union's first president of the board of directors, Mr. Artymovych was elected to that position.

Purchasing its own premises

The credit union purchased its own premises, at 2351 West Chicago Ave., on April 17, 1957, at what then seemed a very high price of $48,140, including the purchase price and remodeling costs.

To increase membership and keep it informed, the credit union sponsored radio programs and advertised its services; board members appeared live on Ukrainian radio, explaining cooperative philosophy and the history of the movement. For a two-year period in 1957-1959, Selfreliance combined several radio programs into one daily half-hour broadcast, beamed from the offices of the credit union building itself. Together with Selfreliance Detroit, the credit union published a bi-monthly Cooperative Bulletin, and members of the board contributed articles on various economic topics.

In 1959 Mr. Artymovych resigned from the Board of Directors, taking a position as a full-time staffer of the credit union. Roman Mycyk was elected president of the board of directors, a position he held to his death in 1996.

During its first decade, 2,754 Ukrainians became members of Selfreliance Federal Credit Union, and credit union assets grew to over $2.5 million.

It was in the 1960s that Selfreliance Federal Credit Union was first able to provide mortgage and construction loans to its members for a 10-year term. Members did not pay points, which in most financial institutions was between 1 and 3 percent of the borrowed sum, and this was a significant savings for members.

Selfreliance provides its members with more mortgage loans than most credit unions, whose lending is mostly to satisfy consumer needs. Property purchases may be for homes, rental or for investment purposes.

For example, the credit union's assistance to members interested in development of the motel industry in Wisconsin Dells began in 1959. With the help of Selfreliance, 20 motels were purchased and renovated or built during the 1960s. The Ukrainian-owned properties in the tourist center of Wisconsin Dells were assessed at $18 million in the early 1970s.

During its first 15 years, Selfreliance Federal Credit Union provided over $4,156,000 in loans to its members. During those years 29 Ukrainian physicians, veterinarians, optometrists and dentists established their practices; 13 gasoline stations and 30 other businesses were started, and 1200 Ukrainian families purchased their own homes - all with funds borrowed from Selfreliance.

This is how the "Ukrainian Village" grew around the Ukrainian churches, and where many other cultural and community institutions found a home. No doubt the viability of this area influenced the positive image of Ukrainians and countered the pressures of assimilation so prevalent at the time. This neighborhood continues to be the focal point of Ukrainian life in Chicago, attracting young and old alike with its stature and its proximity to the city.

Equally important was the credit union's assistance to students in the form of government-subsidized student loans. Selfreliance has been part of the Illinois Guaranteed Student Loan program since 1968. In 1985 there were 422 such loans, totaling $2,377,000. The program provides long-term loans to college students at affordable rates, with interest on the loans paid by the U.S. government until the student completes his or her studies, begins working and starts repaying the loan.

The first branches

To meet the needs of its members as they moved out from the city center, the credit union established branches located in outlying Ukrainian parishes. In February 1969 the credit union opened its first branch, at St. Joseph Ukrainian Catholic Church on the city's northwest side. A second branch located in the SUM premises on the South Side was opened soon afterwards.

In May 1972 Selfreliance reached another financial milestone, as its assets surpassed $10 million.

Selfreliance became a leader in providing financial services even among credit unions. In 1977 the credit union became fully computerized, installing a custom designed, state-of-the-art transaction-processing and recordkeeping package from Triad Software. The program allowed the credit union to perform real-time operations, and afforded a high level of flexibility and control.

The credit union opened two more branches in the 1970s: in the premises of the SUM building alongside Immaculate Conception Ukrainian Catholic Church in Palatine and at Ss. Peter and Paul Ukrainian Orthodox Church in Palos Park. Two additional branches were opened in 1980: one at St. Andrew Ukrainian Orthodox Church in Bloomingdale, and the second at St. Josaphat Ukrainian Catholic Church in Munster, Ind. - the credit union's first branch in another state.

April 19, 1977, the U.S. Congress legislated changes to the credit union law, increasing the deposit guarantee on member shares to $100,000. New services were also introduced for members, including IRA and Keogh accounts, share draft (checking) accounts and automatic deposit of social security and other federal benefits.

On August 21, 1977, Selfreliance treated its members to a picnic, held at the Round Lake Resort owned by the Self-Reliance Ukrainian-American Cooperative Association. The Cooperative Fun Day has become an annual celebration, attracting more members every year, rain or shine. The festival brings together many members, and is important for building community spirit and cooperation.

To encourage savings by its young members, Selfreliance initiated a program of children's savings accounts for the grammar school students attending St. Nicholas School. Besides having the opportunity to watch their savings grow, the young savers received rewards for their participation.

In 1977 Mr. Pleszkewycz retired from his post as treasurer/manager, and Roxolana Harasymiw was appointed to this position.

Continued growth in late 1970s

The U.S. economy and financial markets entered a difficult period towards the end of this decade, with the prime rate rising to 21 percent. Instability and inflation sapped the country's strength. Despite these difficulties, Selfreliance continued to attract new member deposits and new borrowers. By the end of this decade, Selfreliance was serving 7,648 members.

In 1980 Bohdan Watral was elected to the board of directors, and the board appointed him treasurer/manager of the credit union. The title was later changed to President/CEO.

In 1980 Selfreliance adopted a new logo. After obtaining permission from the Credit Union National Association (CUNA), it modified the general helping hands symbol, adding a tryzub, the emblem of Ukraine. This logo continues to adorn all Selfreliance publications and promotional items.

At the annual meeting that year credit union members also voted to change the credit union's name to reflect the importance of its position within the Ukrainian community. Thus, the credit union became officially know as Selfreliance Ukrainian Federal Credit Union.

Further government deregulation of financial institutions in the 1980s made credit unions more competitive with other financial institutions, leading to a general spurt in credit union growth. The 1980s saw an increase in credit union services, with the introduction of new types of certificates of deposit, higher-rate money market savings accounts, and a wider array of personal, mortgage, business and construction loans. Selfreliance also introduced Visa credit cards and interbank transaction processing, such as wire transfers.

The credit union has maintained a close, mutually beneficial relationship with the Ukrainian religious community, and it is at the outlying Ukrainian churches that Selfreliance established its branches. During the 1970s and 1980s these were primarily member service and information centers, with representatives authorized to open new accounts, collect deposits and loan payments, and provide other services. The parish advisory committee of each branch acted as liaison between the credit union and the church community. The first branch to be fully computerized with real time, online operations was the Northwest Branch at St. Joseph Ukrainian Catholic Parish. By the end of the decade this had become a full-service branch, its large office even boasting of the first drive-up teller window.

New milestones reached

Selfreliance Ukrainian FCU reached another milestone in 1988, as assets surpassed the $100 million mark and capital reached $10 million. Membership topped 13,000.

The 1990s were a time of unprecedented growth for Selfreliance Ukrainian Federal Credit Union. Membership doubled, due to both the influx of a new wave of immigrants from Ukraine and the credit union's acquisition of new branches as a result of mergers and expansion.

With the collapse of the former Soviet Union, the opportunity presented itself to assist Ukraine in its struggle toward reform and a market economy. Selfreliance was able to complete the cycle of credit union development by becoming an integral component in the rebirth of the cooperative movement in Ukraine. Selfreliance played a pivotal role in projects for credit union development in Ukraine, in cooperation with the World Council of Credit Unions (WOCCU) and Ukrainian National Credit Union Association. President/CEO Watral served as chairman of UNCUA's Committee for Development of Credit Unions in Ukraine.

With the death of Mr. Mycyk, founder and longtime chairman of the board, in 1996, leadership of Selfreliance was assumed by Michael R. Kos.

In 1993, the NCUA approved the credit union's purchase of certain assets of the Self Reliance (Jersey City) FCU. On October 1, 1993, Selfreliance inaugurated its first New Jersey branch, gaining a toehold and establishing a presence within the large East Coast Ukrainian population. The merger increased credit union membership by 2,000.

Throughout the last decade, the credit union's growth continued, and in 1999 assets surpassed $300 million and reserves surpassed $34 million.

In a continuing effort to provide quality services to an ever-increasing number of Ukrainians, in December 2000 Selfreliance Ukrainian Federal Credit Union of Chicago and Selfreliance Ukrainian American Federal Credit Union in New Jersey merged. Ihor Laszok, the CEO of Selfreliance/New Jersey became executive vice-president for Eastern operations, bringing with him another strong cooperative voice.

The newly merged credit union: Selfreliance Ukrainian American Federal Credit Union, expects that its success and growth will continue into the new Millennium, once again affirming that people helping people truly works. Following the merger, Selfreliance surpassed $365 million in assets at the close of its fifth decade.

Today Selfreliance UA FCU is an institution with $390 million in assets, over $48 million in reserves and 20,000 members, primarily in Illinois, New Jersey and Indiana, where the credit union has offices. With the introduction of Internet banking, available 24/7 online at http://www.selfreliance.com as well as credit, debit and ATM cards, geographic location is no longer a prerequisite to doing business at Selfreliance.

Selfreliance occupies a special place within the rich mosaic that is Ukrainian life in Chicago. Its role is not only that of a financial and economic institution, but also a community leader. Only Ukrainians can be members of Selfreliance, and, as a democratically run cooperative institution, it continues to be "wholly owned" by its Ukrainian members. The credit union unites all members, from all religious backgrounds, no matter what their political or ideological background may be. Selfreliance Ukrainian American Federal Credit Union will always remain a cornerstone of Ukrainian life.

Compiled from Selfreliance UAFCU's 50th anniversary publication edited by Theodora Turula.

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