THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, January 24, 1996 TAG: 9601240353
SECTION: BUSINESS PAGE: D3 EDITION: FINAL
SOURCE: BY TOM SHEAN, STAFF WRITER
LENGTH: Short : 36 lines
Naval Air Federal Credit Union, the third-largest credit union based in Hampton Roads, said it will change its name next week to Chartway Federal Credit Union.
The new designation will better reflect the credit union's expanded field of membership, said Ronald L. Burniske, president and chief executive officer of the Virginia Beach-based credit union.
Organized in 1959 for service personnel and civilian employees at the Norfolk Naval Air Station, the Virginia Beach-based credit union has aggressively expanded its field of membership to hundreds of private employers in the region, including Sumitomo Machinery Corp. and the Farm Fresh supermarket chain.
Like other credit unions, it is a nonprofit organization governed by its members. But in contrast to many smaller, more conservative credit unions, Naval Air Federal has been quick to add bank-like financial services, including home mortgage loans, automated teller machines and credit cards.
The expansion of Naval Air Federal's membership and its broad mix of services have fueled complaints from local bankers, who argue that very large credit unions compete unfairly with banks because their earnings are not taxed.
In its first major expansion, Naval Air Federal absorbed the Continental Airlines credit union in Houston in 1983. In 1992, it took over a credit union in Wakefield, R.I. Today, Naval Air Federal has assets of $470 million and 13 offices, including two in Houston and one in Rhode Island. by CNB