October 15, 2009 - Article Written By: Lia Russell, The Virginian-Pilot
NCP paves way to financial freedom
Photo: Amanda Lucier, The Virginian-Pilot
The revelation stunned Di-Anne Montgomery. At first, the tears some of her clients shed upon opening accounts at a local credit union confused the Norfolk Redevelopment and Housing Authority case manager. Then she realized they were tears of happiness. Montgomery, who has worked at the Calvert Square and Tidewater Gardens communities, was touched. “Many of these people would use a bank to just cash their checks – no savings, no financial planning,” Montgomery, 58, said. “We’re talking money stuffed under a mattress. They just couldn’t believe they finally had an account and a savings plan and that they were actually shareholders in a financial institution.” The NCP (Norfolk, Chesapeake, Portsmouth) Community Development Federal Credit Union has meant the world to its members. For the past 10 years, the small financial institution has grown slowly and quietly in Berkley. “We want to offer alternatives to pawn shops and payday loans to the communities we serve,” said Letitia Batey, NCP operations manager since 2005.
Photo: Amanda Lucier, The Virginian-Pilot
The late Jesse Fleming, a retired banking executive from Richmond, founded NCP to promote thrift, build wealth and promote community revitalization and development in low-income areas. Montgomery has brought 66 new members to the credit union. Financial counseling and an account with NCP are often the first steps for them toward moving out of subsidized housing. “That’s really the goal for these people, to move by choice, not eviction,” she said. NCP is certified as a Community Development Financial Institution, meaning it works in markets underserved by traditional financial institutions. It offers members checking and savings accounts, loans and investment opportunities. A recent partnership with ABNB Federal Credit Union means its members can use any of the nearly 20 Hampton Roads ABNB branches. Members get personal attention. “Because we’re so small, we try harder,” said board Chairman Gilbert Bland. “From our board members to the people who work in our branch, it’s a personal touch.” Montgomery agreed. She recalled the founder, Fleming, once giving her a hand-held mirror to practice saying ‘no’ into, because she needed to learn to say no to her children more often. “You feel like you’re part of an extended family,” she said. Montgomery, a single mother of two, said NCP loaned her money for a new roof, a new driveway and her daughter’s college education. She and her two children also attended financial management classes there together. Batey, the operations manager, explained that if a member doesn’t qualify for a loan, NCP will work with the individual to create a financial plan that eventually will help him qualify. “We’re grass-roots,” Batey said. “We know our members by name.” Currently, the credit union has 535 members. Batey believes that number can easily grow to 4,000. Lenient lending practices early on and the successive deaths of three of its visionary leaders – Fleming in 2004, and board chairmen Robert Jack Jr. in 2005 and Ernie Wilson in 2006 – were setbacks. The past several years have included intensive rebuilding, and NCP now enjoys a solid base with nearly $2 million in assets and growing membership. “We’ve been able to move past the issues of survival and now we’re focused on how to best address the needs of our communities,” Bland said. “I think the future is fairly bright.” Community development initiatives such as financial literacy programs and low-income housing support are primary goals, Bland said. “And to a lesser degree, small-business support.” Batey said the greatest challenge facing NCP today is its low community profile. “People just don’t know that we’re here,” she said. “We want to get the word out that we’re here, we’re a full-service financial institution, open six days a week, and we’re fully insured by the government.”
