Breakwater FCU part of International Credit Union Week

Here in the Copper Country, there is the Breakwater Federal Credit Union, which has been in existence since 1952. Many residents who are members can probably recall the days when the financial institution was the Michigan Tech Employees Federal Credit Union.

President and CEO Paula Megowen has been with Breakwater for 36 years.

“We started out on the Michigan Tach campus in 1952,” she said. “It was in Margaret Eddy’s office – she was a secretary to Tom Ruby. There was a group of founders; Tom was involved.”

Eddy’s desk drawer was her teller drawer, Megown recalled.

Shown is the Breakwater Federal Credit Union sign in Houghton, which features a reminder for patrons that they have an app to help with personal banking. (Graham Jaehnig/Daily Mining Gazette)

“That’s how the credit union started on the Michigan Tech campus, and why it was called the Michigan Tech Employees Federal Credit Union. Back then, we were only here for the university,” said Megowen, “because we were started by the university.”

Over the years, the Credit Union grown and expanded. Needing a larger facility with more offices, the credit union moved to its current its current location, on Sharon Avenue, in 1994. In 2000, the institution absorbed the Pelkie Credit Union.

“That’s when we opened our charter to become a Community Credit Union,” Megowen said. “And now, you have to live, or work, or worship, or do business in Houghton, Baraga, or Keweenaw County, to become a member.”

Being an employee of the university is no longer a requirement for membership. And, once a member always a member, Megowen said.

For example, many school students become member, then graduate and leave the area, they can still be a member. That also applies to university students who graduate and leave the area.

There are advantages in becoming a credit union member. The key difference between traditional banks and credit unions is that while banks have private stockholders or investors, credit unions are not-for-profit.  Because of this, profits from banks go back to the stockholders, while profits from credit unions are reinvested into the credit union to directly benefit the members.

“As a member,” Megowen said, “you have a voting right at our annual meeting, which is held every April. You can vote to decide who our Board member are; different once come up for election every year.”

Becoming a credit union member requires purchasing a minimum of one share in the institution.

“To become a member is $25 to have a share in the credit union,” Megowen explained. “You are an owner of the Credit Union. Whereas banks could be stockholders, with the credit union, you are the owner, so you have a share.”

For credit union members, loan interest rates are typically lower than banks offer, and we typically have higher interest rates. Additionally, dividends are also paid on shares.

Interested parties can become a member on the Breakwater FCU website at https://www.breakwaterfcu.org/. Members can also enjoy online banking, and apply for loans online.