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Section contents:
Over sixty years ago, a small group of Northrop employees applied for permission
to organize and operate a credit union as a benefit to all employees of
Northrop Aircraft Company. On August 29, 1946, the Northrop Aircraft Credit
Union was officially chartered and opened for business. The newly organized
credit union's philosophy to provide a safe place to save and offer loans
at fair rates became the cornerstone of solid financial stability in subsequent
years.
In 1948, Walter Gage, Personnel Manager for Northrop Aircraft Company and
one of the original incorporators of Northrop Aircraft Credit Union, was
appointed the Credit Union's general manager. With a staff of four, he started
the long journey of providing needed financial services to Northrop employees
and their families.
As Northrop grew, so did its credit union. On February 3, 1959, the Credit
Union changed its name to Northrop Credit Union to reflect its mission to
serve all Northrop employees. By 1964, 63.4% of Northrop's 11,899 employees
were members.
In November 1965, the Credit Union family was saddened by the untimely death
of Walter Gage, its general manager for 17 years. Mary Delaney, one of the
first women in Northrop's Management Club, was appointed general manager
on December 1, 1965.
August 1976 marked the retirement of Mary Delaney. During her eleven-year
leadership, the Credit Union grew from $3.5 million in assets to over $40
million in assets with 28 full-time employees serving 18,621 members.
Marv Peiffer was appointed the Credit Union's third general manager on August
16, 1976. New branch facilities were opened at the Aircraft Division's Technical
Center in Hawthorne, at the West Complex location in El Segundo and at the
Defense Systems Division in Rolling Meadows, Illinois. In mid 1979, a new
multi-service Credit Union headquarters facility was dedicated at the Hawthorne
Airport Administrative Building. During this period of expansion and growth,
the asset size of the organization doubled. During 1980, the Share Draft
and Direct Deposit of net paycheck programs were introduced as membership
increased to 30,868.
Our current president and CEO, Stan Swenson, was hired as the Credit Union's
fourth General Manager on May 24, 1982. That year also marked the introduction
of the Individual Retirement Account and Money Market Savings Account. This
period of deregulation of the financial services industry and dynamic growth
of Northrop Corporation saw the Credit Union's assets skyrocket from $87.8
million to $186.8 million during the 4-year period. Membership increased
from 35,500 to a record high of nearly 47,000 in 1987. Loans outstanding
more than doubled from $52.8 million to $136.3 million and reserves increased
to $12.9 million.
By 1985, during its 40th year of service, the Credit Union's assets reached
$100 million, a remarkable figure considering that just 11 years prior our
assets were just over $20 million. Noticeable during 1986 was the growing
sophistication of the Credit Union's automated delivery systems including
our no-fee Share Draft Accounts, NetPaycheck program, and Norteller and
Star System ATMs. At the close of 1991, our 45th anniversary year, yet another
milestone had been reached as assets surpassed the $200 million mark closing
at $211.8 million.
While 1992 proved to be difficult for some financial institutions, Northrop
Employees Federal Credit Union continued to succeed and prosper, ending the
year at a record assets high of $233.5 million. Responding to member requests,
Flight Plan Financial Services, Inc., a wholly owned Credit Union subsidiary,
was incorporated to offer investment and insurance products. On June 8th,
Northrop Grumman chairman, president and CEO, Kent Kresa, dedicated the
opening of our 26,000 square foot Main Office and headquarters at the Electronics
Systems Division in Hawthorne, California. By joining the CU Service Centers
and CU Deposit Network, the Credit Union added another 116 deposit locations.
1993 began with the Credit Union expanding service to Northrop employees
in Norwood, Massachusetts and during September 1995, the Credit Union expanded
services with a branch opening at a newly acquired Northrop Grumman site
in Lake Charles, Louisiana. 1996 ended with the relocation of our branch
in Lancaster, California to a new, more convenient location. The end of 1997
marked the opening of a new branch to serve the employees at the
St. Augustine, Florida site. We moved to a permanent location there with a
Norteller ATM in May of 1998. Our growth was marked by assets in excess
of $265 million as of April 1998.
The Credit Union began the new millennium by merging with two credit unions
in the Washington, D.C./Baltimore area. With these credit unions, Northrop Grumman
Federal Credit Union inherited an expanded field of membership as well as five new
branches.
On-line banking became available to members all over the nation when the
Credit Union launched its Internet branch alternative, the_Max!, in 2001, following
a rigorous test and acceptance period. This versatile tool provides members with
outstanding reliability, convenience and security from an Internet connection.
In 2001, Northrop Grumman Federal Credit Union merged with the Metro Employees
Federal Credit Union, further expanding the field of membership to include Los Angeles
County Metropolitan Transportation Authority (MTA) employees. It also acquired a new
branch in the heart of downtown Los Angeles. By the end of 2001, Northrop Grumman FCU
assets had grown to more than $362 million with an occupationally and geographically
diverse membership of over 50,000 nationally.
Despite the challenges brought about by a sluggish economy and dynamic changes in
member demographics, 2002 proved to be a banner year for Northrop Grumman Federal Credit
Union as evidenced by growth in shares, assets and membership. Shares grew at record
levels as investors pulled money out of an uncertain stock market with a heightened
appreciation for the security offered by the Credit Union’s insured savings. Loans and
assets grew as borrowers enjoyed the expanded buying power of extremely low interest
rates for both consumer and real estate loans. Finally, as Northrop Grumman Corporation
expanded its influence into every region of the United States, the Credit Union was busy
implementing service solutions to a varied and geographically disbursed membership base.
The Credit Union finished 2002 with $396 million in assets with a membership base
exceeding 55,000.
During 2003, thousands of members chose to enjoy the many time- and money-saving
benefits of the_Max! eBranch with
free bill payer. Through it’s wholly owned subsidiary, Flight Plan Financial Services, Inc.,
the Credit Union implemented new dental and vision coverage aimed to serve the special
needs of retirees. A new branch was opened in McLean, Virginia, to serve the growing
population of Northrop Grumman Federal Credit Union members in that area. The Credit
Union added more value to its MasterCard program by offering low rates, rebates and
rewards. During the last half of 2003, a special low fixed rate auto loan promotion
provided nearly 1,000 members with more than $16 million in funding for new and used
vehicles. With record low real estate rates, the Credit Union provided over $96 million
in real estate loans to members to refinance or purchase homes. The year ended with over
58,000 members and assets up 17.3 percent from the previous year in excess of $466 million.
Throughout 2004, the popular 3.9%/4.9% Fixed
Rate Auto Loan program continued to provide low interest rate loans to
members for new and used vehicles. Members funded nearly 2000 low interest
rate auto loans totaling $36.25 million. A new branch office and ATM
went into operation to serve the employees at Northrop Grumman's F-35
Building in El Segundo, California. With the assistance of its wholly-owned
subsidiary, Flight Plan Financial Services, Inc., the Credit Union made
available an array of voluntary insurance options to Northrop Grumman
employees in the Space Technology and Mission Systems sectors and to NGC
retirees. the_Max! eBranch service expanded to over 16,000 users
managing their Credit Union accounts online, with over 2,300 using the
convenient and free bill payer feature. The year 2004 ended with
assets of $523 million, a 12% increase over 2003.
As a reflection of member confidence, the
Northrop Grumman Federal Credit Union continued a pattern of steady growth
throughout 2006 finishing the year with $570 million dollars in assets with
more than 40% of Credit Union income returned to members in the form
dividends on savings. Improvements were implemented to remote access
channels providing members with more services and better accessibility
including the newly redesigned the_Max! eBranch with expanded
account services, an improved bill payer environment, and the implementation
of eStatements. In addition to an improved eBranch, during 2006 the Credit
Union also implemented online consumer loan origination to complement the
addition of online mortgage loan origination in 2005. Completing the
symphony of eBranch services, the Credit Union began offering an easy,
convenient and secure method of "taking ownership" with the implementation
of online membership origination and account funding.
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