Diana Dykstra still remembers her first day at TheGolden 1 Credit Union. The former Bank of America employee washired in August 1982, the very day California's second-largestcredit union reached $200 million in assets.

“I started as a part-time loan clerk,” said Dykstra, nowpresident/CEO of the California and Nevada Credit Union Leagues. “Ileft in 1997 as senior vice president of lending, collections,marketing and statewide services.”

Dykstra's career trajectory continued, including serving aspresident/CEO of the $850 million San Francisco Fire Credit Union,a role she occupied just prior to her league appointment. Shecredits her 15 years at The Golden 1 for setting her on the rightpath.

“I am where I am today in large part because of theopportunities (The Golden 1) gave me,” Dykstra said.  “Itook many things away with me and probably the most important wasnot to fear failure. The only way we can get better is to takemeasured risks, learn from the mistakes and keep movingforward.”

The Golden 1 turned 80 on Aug. 5, and its age alone may beconsidered an achievement given the frequencies of mergers in theindustry. But as California's second largest credit union, afterthe $9.8 SchoolsFirst FCU in Santa Ana, and the nation'sseventh-largest, The Golden 1 has also achieved significant growthin its size and service to members. 

And, while size matters, strategy plays an even more crucial inhelping the credit union fulfill its mission, according to DonnaBland, The Golden 1's president/CEO.

“We're here to provide our members with the products, servicesand advice they need to get where they want to go in life,” saidBland. “We're advocates.  We see members as theindividuals they are and we're here to help.”

The credit union backs its member commitment with a wide rangeof products and services, as well as an emphasis on member serviceitself. With more than 1,300 employees serving 640,000 members from80 branches —more than other credit union in California—the $8.2billion The Golden 1 has played a formidable role in its members'financial lives, something that stands in marked contrast to itsmodest beginnings.

The credit union was established on Aug. 5, 1933, in the heartof the Great Depression. Chartered by 11 state employees asCalifornia State Employees Credit Union #1, the institution was thefirst to provide financial services to state workers and theirfamilies. By 1934, the credit union had reached 131 members and by1950, membership topped 4,565.

Growth continued, with assets reaching the $1 million mark in1952 and exceeding $100 million by 1977. That same year, the creditunion changed its name to The Golden 1 to better reflect a quicklydiversifying membership that grew well beyond its original stateemployee base.

By the 1980s, technology began playing a more important role inThe Golden 1's service profile, which led to the installation ofATMs.  

The 1990s saw the addition of state budget payrollloans available to state employee members enrolled in directdeposit to assure that they received payment when state payrollswere delayed by specific pay dates and state budget impasses.During that same period, the credit union introduced electronicbanking and bill payment services.

“With the expansion of mobile technologies in the late 2000s, weintroduced dedicated mobile banking applications for Apple andAndroid devices, as well as Popmoney for person-to-personpayments,” Bland said.  “Now, almost 44% of our 640,000members use these online and mobile services regularly.”

Such convenience has helped The Golden 1 earn significantconsumer accolades. In recent years, the credit union has won theLouise Herring Credit Union Philosophy in Action award four times,the Dora Maxwell Social Responsibility Award twice, and has beennamed among the Sacramento Workplace Excellence Leaders twice.

“These awards are for our efforts to build financial literacyskills among the members of our communities and for providing freeservices such as community shred events which are attended bythousands of area residents each year,” Bland said. 

The Golden 1 also introduced The Golden 1 Scholarship program,which this year provided scholarships amounting to $320,000 inrenewable financial assistance to 33 students attending Californiacolleges and universities. The credit union also just launched aGolden 1 Grant Program, which this fall will provide $300,000 tosupport programs in 2014 that help students develop reading skills,and provide assistance to young adults emancipated from the state'sfoster care system.

It's one thing to provide scholarships to members or advancefunds to state employees whose checks have been delayed due topolitical wrangling, but quite something else to bail out the stateitself.

The Golden 1 was one of the first financial institutions to cometo the aid of the State of California when it sought to generatetemporary funding to cover state operating expenses during times ofbudget impasse in 2008 and 2009.  Through the purchase ofRevenue Anticipation Notes, the credit union assisted both thestate and its members who were state employees.  The fundshelped stabilize the government during an economically difficulttime, according to Bland.

“Although Golden 1 was not the largest purchaser of CaliforniaRAN offerings, our sheer size enabled us to take advantage of theoffer while earning a modest return on these short terminvestments,” she said.

In this case, clearly, size mattered. But a strategy that helpsboth members and an employer the size of the State of Californiamake its easy to understand why The Golden 1 has enjoyed thesuccess it has over the years.

“One cannot look at Golden 1 and not admire the credit union forit's great success,” Dykstra said. “The Golden 1 has had a hugeimpact in Sacramento and all communities they serve.  Theyare great stewards in these communities and support all types oflocal efforts.”