A new name for what had been DM Federal Credit Union will no doubt have some people assuming it's been swallowed up by a larger financial institution.
But the yellow and red banners heralding Vantage West Credit Union actually denote the same locally based credit union flexing its new state charter.
It was originally chartered as D.M.A.F.B. Federal Credit Union in 1955, but Vantage West members voted in April to convert from a federal to a state charter to increase the number of people eligible to join and reduce the costs of doing business, said CEO Robert Ramirez.
"We're still the same credit union with the same board and the same management team, but we're going to be able to enhance our products and services," Ramirez said.
"The name change will help alleviate prior misconceptions about who is actually eligible to join the credit union."
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Anyone who lives, works, worships, volunteers or attends school in Pima or Pinal County, or in a portion of Maricopa County, is eligible to join, Ramirez said.
Vantage West is the largest credit union in Southern Arizona with about 100,000 members and $862 million in assets. It has nine Tucson branches, one in San Manuel and one in Phoenix, said spokeswoman Jill Figueroa.
Ramirez said one reason the credit union changed its charter and subsequently its name is because of recent restrictions that limit federally chartered credit unions to serving more than one county.
"A lot of that has to do with what we call 'banker attacks,' because they really do want to get rid of the competition," said Pat Bodnar, senior vice president of Phoenix-based Arizona Credit Union Systems. "The banks got a moratorium put onto federal charters against serving more than one county, and that's why your seeing some of them switch to state charters."
Just as many credit unions do the reverse with their charters, she said.
"It happens both ways," Bodnar said. "For some, it's cheaper to do business with a federal charter, and in Utah, for example, they passed a state law that kind of harmed state charters, so a bunch of them are actually switching to federal charters."
Banks have criticized the largest credit unions for growing at the expense of community banks, charging that the tax-exempt status of credit unions creates an unfair competitive advantage.
That's the beauty of credit unions, Bodnar argues, as their nonprofit status allows members to enjoy lower fees and higher dividends than banks, which need to show a favorable profit margin to shareholders.
"Banks do a great job at certain things and credit unions do a great job at others," she said. "There are good reasons for both to be around."
Ramirez said Vantage West has expansion plans that include adding physical branches and expanding the credit union's Web site, ATM network, and kiosk-type services, Ramirez said.
Despite the new name, Vantage West will allow members to use checks and ATM, debit and credit cards with the old "DM" logo, he said.
l D.M.A.F.B. Federal Credit Union chartered to serve members of Davis Monthan Air Force Base.
l Name is changed to DM Federal Credit Union to represent wider membership.
l Name temporarily changed to DM Credit Union to reflect conversion from federal to state charter.
l Name changed to Vantage West Credit Union.