Since the First National Bank came to Haines in 1962, there has been only one place in town to make deposits and take out loans. Soon there will be two.
Ketchikan-based Tongass Federal Credit Union (TCFU) plans to open a branch on Second Avenue in January.
“We’ve always looked at the communities around us and wanted to provide financial services where they are unserved or underserved,” said Helen Mickel, chief executive of TCFU, which has sites across Southeast, from Metlakatla to Hoonah. In 2019, the credit union’s field of membership—the area that it legally can operate—expanded. “Haines was one of our first communities on the list,” Mickel said.
Unlike banks, credit unions are nonprofit cooperatives, meaning they are owned by their members. Rather than making profits for investors, credit unions are geared toward offering low rates and serving people who might not be eligible for a bank loan.
“We are always there to help people get started or start over,” Mickel said. “If (someone) had past issues with credit, we can help them work on cleaning that up and help them get a new fresh start toward financial wellness.”
Dick Flegel, former Haines branch manager at First National Bank Alaska (FNBA), said having TCFU in town might lead to some deposit spin-offs from FNBA but he doesn’t suspect it will affect rates at the bank. “Those who want to borrow can already borrow. And those who can’t might be knocking on Tongass’ door,” said Flegel, who worked at FNBA for 35 years.
“We welcome our new neighbors, Tongass FCU, and hope they enjoy serving the community as much as we do,” said FNBA executive vice president Cheri Gillian in an emailed statement to the CVN. “We’re committed to investing in Haines and providing local, neighborly access to reliable banking services to meet our customers’ ever-changing financial needs.”
While rates vary across the board at both institutions, one example of a difference is that TCFU offers an annual percentage rate range of 2.5% to 13.25% on auto loans, compared to 4.36% to 10.61% at FNBA.
“The fact that Tongass FCU has chosen Haines as a branch location speaks to the potential that Southeast Alaska sees in our community,” the Haines Chamber of Commerce assistant director Andrew Letchworth wrote in an email to the CVN. “For a financial institution to invest in a community means that they see growth potential they want to stand behind.”
Mickel was slated to visit Haines last week for a community meet-and-greet and presentation but her flights were canceled due to weather. She hopes to visit in a few weeks. If all goes as planned, TCFU will open at 138 Second Ave, the former location of The Magpie Gallery, in the second week of January. The credit union still needs to hire a manager and two member service representatives, one full-time, the other part-time.