KANNAPOLIS, N.C. - Given the downsizing in textiles andmanufacturing, it's hardly surprising North Carolina ranks high inhaving what might be the nation's poster credit unions for economicsurvival and social responsibility.

On both scores, there are a multitude of high achieverslately.

Take the $30 million Southern Select Credit Union of Kannapolis,for example, which captured CUNA's Dora Maxwell Award two years agofor aiding out-of-work employees at the now bankrupt PillowtexCorp. which at the time represented the largest layoff in NorthCarolina history.

Despite such adversities as a 10,000 to 6,000 membership drop,an equally precipitous decline in loans and several years oflosses, Southern Select has managed to hold on and succeed in 2006"though it has been a major struggle," confided the CU'spresident/CEO Huyla Jackson.

And then there is the $19 million Carolina FCU of Cherryville, aformer single sponsor CU which fell on hard times when its parenttrucking company left town. But the CU has since regained itsfinancial footing, doubled its SEGs and last month applied for itsfirst underserved charter.

"I suppose you could say it has been gratifying and a challengeto help my credit union grow once again," declared Donna Beringer,the president and CEO, who left a branch manager's job at Navy FCUa year and a half ago to take the Carolina FCU post.

For years, Carolina FCU had been a "plain vanilla" institution,she said, with little or no marketing, no audio response or onlinebanking and since her takeover has brought in those services, addedoverdraft protection and increased SEGs from 12 to more than20.

Even timelier is the June 1 announcement by the $26 millionSchool Workers Federal Credit Union of Charlotte to change its nameas part of an expansion program encompassing seven North Carolinacounties under a U.S. Treasury designation as a CommunityDevelopment Financial Institution.

"We're right here in the shadows of Bank of America andWachovia, but that hasn't stopped us in reaching out to theunderserved," said Saundra Scales, president/CEO of School Workers,renamed First Legacy.

First Legacy's member base for 65 years has been employees ofthe Charlotte-Mecklenburg School System with its CDFI designationcovering people of modest means in African-Americancommunities.

Indicative of its expansion, First Legacy has pending with NCUA,an amendment to its charter to cover Mecklenburg County whichincludes metropolitan Charlotte. As a result of recent mergers, italready has FOM coverage for Rowan, Iredell, Cabarrus, Alexander,Catawba and Davie counties.

By changing the name and extending new services, the CU canstill "showcase our rich heritage," said Scales

Like First Legacy, Carolina FCU, Southern Select and other smallCUs, which have sought ways to expand, their moves have caught theattention of the state's media. Getting Noticed

Indeed, the Kinston Free Press gave featured coverage in Aprilto a ribbon-cutting ceremony of the $13.6 million Carolina FamilyFCU, an ex-single sponsor which after several years of delayfinally opened its second branch in downtown Kinston, miles awayfrom a downsized Dupont Corp. polyester plant. The Free Pressarticle quoted Brinda Turnage, manager of Carolina Family, on itsdecision to seek an August 2005 community charter as well as changeits name from Dupont Federal CU, a development that came amidstcontinued layoffs at the plant, which was eventually sold to UnifiCorp. "We were quite pleased with the press coverage," said Turnagenoting that the CU had not received that kind of attention before."It was a great way to get the word out of what we do." In thearticle, Turnage traced the CU struggles of operating out of anoffice at the Dupont site, where hundreds of workers were laid off,but had now landed in a more convenient site. Carolina Familycurrently has 2,100 members, down from the 3,500 during the plant'sheyday, but remains in good financial condition with loans on therise and high traffic at the downtown location, said Turnage. "Wewill have to move at least one employee from the plant office tothe new location and I think for the first time we'll have moreemployees downtown than we do out there,"said Turnage. Like its CUbrethren elsewhere in the state, Carolina Family has also had towithstand losses, but now the CU is seeing the fruits of itscharter change "and we're witnessing a base of loyal members."

At Southern Select of Kannapolis, managers underwent a similarstruggle to withstand lost business and members when PillowtexCorp., formerly Fieldcrest/Cannon, closed in July, 2003 laying off4,000 in North Carolina and more than 1,500 in the area.

But Southern Select's problems began before that. In fact, theevents of 9/11 took a toll on the North Carolina CU since theinitial downsizing of Fieldcrest/Cannon was underway in Oct. 2001,the same month Southern had pre-planned a name change, communitycharter and a computer conversion.

"We were all dealing with shocks of 9/11, and so it was all verynegative," recalled Jackson

Following the Pillowtex closing, the CU quickly providedfinancial education to displaced members as well as waived fees anddeferred loan payments.

But, in addition, CU employees went to work arrangingfundraisers to soften the blow for Pillowtex workers with thelargest undertaking being a popular Community Yard Sale. That eventin September 2003 raised more than $2,000, all of it going toPillowtex families, said Jackson.

"The purpose of the event was to allow the public a centrallocation for a sale, and vendors could keep the proceeds or donatethem to the Cooperative Christian Ministry Relief Effort," saidJackson. "We involved local merchants, churches as well as the highschool's National Honor Society members."

"The official mascot from the local single-A baseball team wasthere, and we had food, refreshments as well as games for thechildren," recalled Jackson.

On top of that, Southern Selected sponsored nearly a dozen othercharity events in town ranging from blood drives to Christmas hometours, all of which figured in the decision by Dora Maxwell judgesto pick Southern Select.

One noteworthy event included raising money for phone cards forthe local U.S. Army National Guard units on their way to Iraq.

Today, said Jackson, Southern Select sees a brighter future witha high-tech research park being built on the now-demolishedPillowtex site and the prospect for many new members.

"I suppose you could say if there is one lesson we could passon, it would be `don't give up'," Jackson concluded.

In acknowledging the problems of many small CUs in the state,the North Carolina Credit Union League said it has long beenworking to ease their plight adding however that the state has lostthousands of manufacturing jobs here in N.C. and that's put a lotof pressure on some credit unions.

"This development validates the wisdom of Congress expandingaccess to credit union membership in 1998. A lot of credit unionswould have died out otherwise," said Dan Schline, senior vicepresident of association services.

"Bankers have spent a lot of money and time in an effort topresent credit union growth in a negative light," said Dan Schline,senior vice president of association services.

"But if you look at how globalization has changed the economy inour state, you quickly realize that credit unions are having toreach out to new people in order to remain a viable choice foraffordable financial services," said [email protected]