Minnesota Building Trades Federal Credit Union was established on March 1, 1992, when Minneapolis Building Trades Credit Union (MBTCU) merged with St. Paul Building Trades Federal Credit Union (SPBTFCU).
Founded in May of 1950, SPBTFCU served the building and construction trade unions of St. Paul. SPBTFCU managed an asset base of $6 million and maintained 7% in capital. Its membership totaled 2800 and it employed a staff of five (three tellers, a loan officer and a President). SPBTFCU operated one office located in an office complex called Bandana Square (a rehabbed train facility) which was expensive to maintain and difficult for the membership to find. Although the Credit Union had potential, its limited budget prevented it from adding additional employees. Most importantly, it lacked the support of leaders in the building and construction trades community which would enable it to grow.
Also founded in May of 1950, MBTCU served the building and construction trade unions of Minneapolis. Over 42 years, it had grown to $14 million in assets, 9% capital and maintained a membership of 3700. MBTCU employed a staff of eight, including three tellers, two loan officers, a bookkeeper, a collector, and a manager. MBTFCU operated out of one office located on the second floor of the Minneapolis Labor Center, a location that was inconvenient to everyone except the few members who worked in the building or lived in the nearby apartments. Although the Credit Union was prospering, its growth potential was limited due to its inconvenient location.
Discussions to merge the two credit unions began after SPBTFCU’s president announced her resignation in June of 1991. At that time, experienced managers willing to work for a small credit union were scarce and the Credit Union knew replacing her would cost more than they could afford. After reviewing the strengths and weaknesses of each organization, it became apparent that merging the two entities would result in a financially stronger institution, provide the operating budget and staffing needed to offer an expanded product line and, most importantly, provide for additional branch locations.
Many members and leaders of building and construction trades fought to keep the merger from happening. At that time, the Mississippi River not only divided the cities of Minneapolis and St. Paul geographically, it also divided the building and construction trades community. In spite of this, the eighteen board members, chaired by Patrick Boyle and Wayne Schneider, had the vision to look beyond the negative rhetoric and focus on the future benefits.
After obtaining a positive vote of each Credit Union’s membership, the National Credit Union Administration approved the merger plan and the two organizations merged on February 28, 1992.
Minnesota Building Trades Federal Credit Union (MBTFCU) is a financial cooperative, owned and operated by its more than 15,000 members, with more than $103 million in assets. Our mission is to be our members first choice for financial solutions. All else is secondary.
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