Pima Federal Credit Union Turns 75

For the Members, the Employees & the Community

By Jay Gonzales

From the day 75 years ago that a small group of Tucson teachers pooled $84 to form a credit union for themselves and their counterparts, Pima Federal Credit Union has worked diligently to remain true to its purpose – serving its members, its roots, and its community.

In those 75 years, Pima Federal has grown from that $84 to start in 1951, to a full-service credit union that remains focused on education and has now accumulated $1.7 billion in total assets with a grander purpose than making a profit for itself.

“What are we doing to support each member through every stage of their financial journey?” is how President & CEO Eric Renaud describes the credit union’s mission and its role in the community. “We’re not focused on selling products. We’re focused on serving people. At the end of the day, our responsibility is to do everything we can to create meaningful value for our membership.”

While the credit union sprouted from the efforts of teachers, after 75 years, its service goes beyond the education community. In 2009, it merged with Desert Energy Credit Union, which was the credit union for Tucson Electric Power and Southwest Gas employees. There are 14 brick-and-mortar branches stretching from Green Valley through Tucson, into Phoenix’s East Valley, and in the White Mountains.

Still, its reason for existing remains tied to its roots in education.

“That commitment will always remain at the heart of what we do,” said Celyna Cervantes, EVP, chief growth and strategy officer. “Our roots in education continue to inspire how we support schools, students and educators.”

Like most credit unions, Pima Federal is steadfast in its personal approach to its members. Questions are answered locally. Decisions are made here. Branch employees understand that when a member approaches them, they have a responsibility to make them welcome and meet their needs.

It takes a special kind of employee, working within a culture grounded in shared values to deliver that level of service consistently, said Sarah Holt, Pima Federal’s chief people officer.

The shared values are specific, Holt said − service excellence, teamwork, integrity, engagement and community involvement.

“These five values truly define our culture − who we aspire to be, how we guide the decisions we make, and the kind of people we seek to welcome to our team,” Holt said. “When we find people who are rooted in those values, we can teach them the skills they need to succeed.”

Pima Federal Board Chair Jason Larter, a retired Oro Valley Police officer, said the employees are one of the best things about the credit union in that they embody the overall credit union mission which is to be there for members who come for personal service they might not be able to get at a bank.

“You’re only as strong as the people on the front lines – the employees our members see and rely on every day,” Larter said. “We do things a little differently, and that is by design. We operate as a leaner organization, but our greatest asset will always be our employees and their shared commitment to serving members in a way that sets Pima apart from other financial institutions.”

None of that implies that financial performance takes a back seat, Renaud said. Quite the opposite.

Renaud said he believes a credit union has to be financially strong if it is going to provide meaningful value to its members.

With an already lengthy career in the credit union business, Renaud joined Pima Federal as CFO in 2011. He was named interim president and CEO in October 2015, and was named to the position permanently in January 2016.

“My journey in that is to be very fiscally disciplined so that we can afford to give the best value to our membership,” he said.

As he evaluated the organization, Renaud thought Pima Federal had room to improve its financial performance and operational efficiency.

“We weren’t growing significantly at the time,” he said, noting that while growth is not the sole measure of success for a credit union, “it is an important indicator of scalability and long-term viability.”

The larger concern when he became CEO, he said, was that high expenses and low earnings limited what the credit union could give back to its members and the community.

His response was to make the organization more efficient − not simply for the sake of producing better financial numbers, but so those improvements could ultimately benefit members.

“I really wanted to operationally create a much more efficient shop, so that we could lower operating expenses and then provide that value,” he said.

That member-first philosophy also shapes how Pima Federal employees interact with the people who walk through its doors.

“I want Pima Federal to be a place where people with financial needs can turn with confidence – knowing they will be treated fairly, supported without excessive fees, and made to feel comfortable asking for help,” said Board Member Linda Kennedy, who served as chair until May and was on the Desert Energy Credit Union board when it merged with Pima Federal. “What I value most is that we help people achieve financial success.”

Renaud acknowledges that banks and credit unions both have an interest in providing good service, but he sees a fundamental difference behind Pima Federal’s approach.

“We want to meet that member where they are when they come in,”  Renaud said.

Or, in Bruce Barnett’s world, anywhere the members make contact with the credit union often via technology that is generally expected to match or exceed what they can find at a bank, not only in service and convenience, but in security.

“Your first touch point with your members is your technology,” said Barnett, the credit union’s chief technology officer. “Most members are signing up online. They’re learning about you from the internet. They’re opening up an account online with your app, seeing how your systems work. You have to be as good or as seamless as Wells, Chase, 

B of A, because that’s what they expect.”

In the end, Renaud said, Pima Federal’s role in the community is not so much a battle for market share as it is to provide financial services and value to its members.

“The way I see our community, and our broader place across the state, is that there is ample opportunity for everyone,” Renaud said. “What weighs most heavily on me is the human side of our work. At the end of the day, it is, and always will be, about people.”

Pictured above The Pima Federal Credit Union executive team, from left – Bruce Barnett, Chief Technology Officer; Celyna Cervantes, EVP, Chief Growth and Strategy Officer; Eric Renaud, President & CEO; Sarah Holt, Chief People Officer; Adam Coggshall, Chief Credit Officer. Photo by Brent G. Mathis
 

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