SALT LAKE CITY – For Japanese-Americans who lived in the U.S. during World War II the end of the war didn't just mean the victory of the country over Japan. It also marked their release from the internment camps they were forced to live in during the war and their need to find financial assistance they couldn't get from banks. They found that assistance in the newly formed National JACL CU, and 62 years later the credit union's field-of-membership remains unchanged-members of the Japanese American Citizens League (JACL). The formation of National JACL CU was the idea of Hito Okada, a past treasurer of JACL who retired from the CU in 1976. According to National JACL CU President Terrell Nagata, as the "money man" for JACL, Okada was often approached by other Japanese to lend them the organization's money to use for transportation costs to jobs or other personal needs. "Many Japanese-Americans kept their money in suitcases because they couldn't open accounts at banks or get loans," explained Nagata. "But Okada couldn't lend them JACL money because it belonged to the organization. That inspired him to organize the credit union."
That and becoming acquainted with Karl S. Little, the "father" of the credit union movement whom Okada had the opportunity to meet when he moved to Salt Lake City to join the National Headquarters of the Japanese American Citizens League to handle their fiscal problems. It was 1942 and the Utah State Credit Union League, as it was known then, was still in its infancy. In order to get assistance to organize a credit union in the state, Ogada had to contact a member of the league, and that member turned out to be Little.
When National JACL CU applied to the Utah State Banking Department it was one of the first applications made for a state-chartered credit union by an ethnic group.
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National JACL CU began with 10 members and around $2,900 in assets.
When WWII ended, Japanese-Americans coming out of the internment camps and returning Japanese-American members of the Army's 442nd Infantry Regimental Combat Team learned about the credit union from JACL. Initially offering only savings accounts and small loans, the credit union proved to be a lifeline for many Japanese-Americans after the war.
Sixty-two years later, National JACL CU is still small by credit union standards-it has $27 million in assets and 4,800 members, and its field of membership is still single-sponsor.
Despite its size though, the credit union has managed to stay current with products and services. It offers consumer, mortgage and auto loans, IRAs, credit and debit cards, checking and money market accounts and certificates of deposit. Its loan-to-share ratio as of May was 3.75%.
The CU's staff includes nine employees.
Still Nagata, who's been president of National JACL CU for 23 years, realizes that the credit union faces the same challenges that other small CUs are dealing with-its survival and declining membership. He concedes the credit union may be forced to expand its FOM.
"I don't know how that will turn out, but if we can't reverse the trend then our board will have to consider that option," he said.
His other priorities for the next five years include increasing services and the CU's revenue. The CU is reviewing products offered by CUNA to provide its members.
Despite its uncertain future, National JACL still has things to celebrate like the new 6,900 square-foot facility it recently moved into which is three times the size of its previous headquarters it occupied for 41 years since 1965. The main advantage of the new offices is the drive-up lanes the previous facility didn't have.
"There's a lot of uncertainty about our future, but we have a rich history and I hope we can retain that," said Nagata.
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