Freedom First Credit Union
2013 National Community Credit Union of the Year*
2013 Year-End Impact Report
Freedom First is Virginia’s largest Community Development Financial Institution. We have
proudly served the Commonwealth’s Roanoke and New River Valleys since 1956, and we
were named the national Community Credit Union of the Year in 2013 by the Credit Union
National Association.
As a designated Low-Income Credit Union (more than 60 percent of our members are lowincome), Freedom First is committed to ensuring a prosperous future for all of Virginia’s
families and communities—one member, one family, one business at a time.
The Garrido Family’s
Path to Homeownership
Step 1: Financial Education
Step 2: Visa Credit Card
Step 3: Custom Financial Counseling
Step 4: Personal Auto Loan
Step 5: Small Business Auto Loan
Step 6: Qualify for a Freedom First
Affordable Housing Portfolio
Home Loan
The Garrido family, first-generation immigrants who settled in Roanoke, receive one-onone instruction as Freedom First prepares them for the closing on their first home.
At Freedom First, we believe that the complex financial challenges faced by families, businesses, and
communities are not insurmountable. A sustainable approach to Community Development is the key to
helping Virginians reach their financial goals.
(540) 389-0244
www.freedomfirst.com
Freedom First Credit Union
Impact Banking Products and Services
Our unique suite of affordable financial products puts meaningful borrowing and saving opportunities
within reach for those who have been underserved by traditional banking institutions.
Responsible Rides
This award-winning partnership between Freedom First
and area businesses and nonprofits incorporates financial
education and vehicle maintenance classes.
Micro Loans
Total Loans Issued*
193
Total Amount Loaned
$2,032,584
Average Vehicle Cost
$10,531
Average Borrower Income
$18,415
Average Borrower Credit Score
556
*Numbers are since program began in 2010.
Unsecured loans of up to $3,000 don’t generate the kinds
of profits that most banks find worthwhile, but a Micro Loan
can be all that’s needed to help borrowers regain their
financial footing. From vehicle repairs to home maintenance
to education costs and debt consolidation.
Freedom First loaned $927,525
to 603 Micro Loan borrowers
in 2013—an average of $1,538 per loan.
Credit Builder Loans
0-630
Low/no credit is a catch-22: more risk to lenders means
less access to credit and higher interest rates, which
makes repayment more difficult. Credit Builder helps
borrowers develop a habit of making regular payments
on time while establishing positive credit.
New Freedom First members with zero credit
had an average credit score in 2013 of 630
after only 6 months of Credit Builder participation.
Payday Alternative Loans
Payday lenders do not have to be the lenders of last resort
for hard-working Virginians who have cash-flow emergencies in between paychecks. Extraordinarily high interest
rates make the cycle of debt even harder to escape.
Borrow & Save
When traditional loans and savings opportunities are out of
reach, Borrow & Save offers loans up to $5,000. Half of the
funds are held in a savings account until the borrower pays
down the other half. Borrow & Save builds credit while
teaching the benefits of saving.
(540) 389-0244
www.freedomfirst.com
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Freedom First issued 368 PAL loans in
2013, saving borrowers $47,858
in interest and fees!
Borrow & Save participants increased
their credit score—63 borrowers
began with a score of zero—
and saved $172,250 in 2013.
Freedom First Credit Union
Impact Banking Products and Services
Impact Banking isn’t limited to loans. Our comprehensive approach to Community Development includes
an award-winning financial education program, academic scholarships, and programs that support
responsible home and auto ownership.
Financial Education
Many for-profit financial “education” providers use their seminars
to market their products to their audience. At Freedom First, we
customize our free financial education curriculum to meet the
specific needs of the people, agencies, schools, and small businesses
we serve. Our goal isn’t the hard sell—it’s educating our members.
1,881
individuals benefited from free
financial education in 2013
Academic Scholarships
Freedom First awarded $9,500 in academic scholarships in 2013 to college-bound
seniors and undergraduates whose academic achievement, work ethic, and civic
involvement make them stand out from the crowd.
Home Ownership Solutions
In partnership with the Federal Home Loan Bank, Roanoke City, and local nonprofit
agencies, Freedom First has developed options for Virginians with less than perfect
credit to make the dream of home ownership a reality.
“Track-2” Loans, a second-chance loan review for borrowers who do not qualify when using traditional underwriting
standards but whose unique circumstances warrant customized underwriting
Down Payment Assistance with matches up to 5:1 — $113,996 awarded in 2013
VA, VHDA, USDA, FHA, ,and portfolio programs
Federal Home Loan Bank set-aside products
Affordable housing: more than $3 million in home loans to 34 lower income borrowers in 2013
Accessibility rehabilitation
Energy weatherization and energy-efficiency
Home buyers’ financial education
Veterans purchase and rehabilitation
(540) 389-0244
www.freedomfirst.com
3
Freedom First Credit Union
Volunteerism and Community Support
CDFI
As a certified Community Development Financial Institution,
we are dedicated to serving those who lack access to
financial services from mainstream banking institutions.
Our goal as a CDFI is to equip our members with the tools
they need to reach their financial goals, and our nonprofit
community partners with the capital they need to implement
their projects and fulfill their missions.
$106,878
in donations of time, money,
and scholarships in 2013
2013 Community Work Day Agencies
Service Projects
Community Work Day
11 projects, 160 volunteers, 1 “bank holiday”
This annual Freedom First-sponsored volunteer event
brings together the collective energy of the Credit Union’s
full roster of staff, management, and board to accomplish
large projects at under-resourced local nonprofit agencies.
Community Work Day is only one of many initiatives our
staff lead and participate in throughout the year—every year.
Advancement Foundation
Big Brothers/Big Sisters of SWVA
Botetourt Food Bank
Boys & Girls Clubs of SWVA
Children’s Trust
Feeding America Southwest Virginia
Habitat for Humanity
New River Family Shelter
Rescue Mission
Salvation Army
Warm Hearth Village
Rebuilding Together Roanoke
an extreme home makeover by an all-volunteer crew
Relay for Life and AHA HeartWalk
fundraisers for cancer and cardiovascular research
Nonprofit Board Service
632 volunteer hours in 2013 by our management team
Freedom First sponsored the first annual Superhero Race
to benefit Family Promise of Greater Roanoke.
...and many more!
Scoop
3,078
Free Ice Cream
Our outreach team brings free ice cream to elementary
schools, retirement centers, nonprofit events, public housing
block parties, and other community events. No pressure,
no sales, just ice cream and smiles.
(540) 389-0244
www.freedomfirst.com
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hours of community service
in 2013
Freedom First Credit Union
2013 Community Investment Grants
$35,000
The Advancement Foundation
$5,000 to fund a business enterprise development program
under its Lift, Educate, Advocate, Proclaim program umbrella.
City of Salem Farmers’ Market
in community investment grants
in 2013
$5,000 in matching funds for EBT users, making locally
grown, healthy produce and food items available to more low-income consumers.
Commonwealth Catholic Charities
$5,000 to establish and equip a computer lab to facilitate English and computer literacy instruction
to adult refugee clients.
Historical Society of Western Virginia/O. Winston Link Museum
$2,000 to fund Adventures in Photography, an
educational program at Roanoke’s Lucy Addison
Middle School.
The Hope Center
$3,000 to support establishing and operating an adult
daycare facility for 20 seniors in rural Catawba.
New Horizons Healthcare
$5,000 to expand its Happy Healthy Cooks program
into additional local elementary schools.
“We are so grateful to be affiliated with an organization that
supports and believes in the health and well-being of the
people in our community.”
~Heather Quintana, Happy Healthy Cooks
Salem Area Ecumenical Ministries
$2,000 to fund ACT Packs for Children, a summer
“feed and read” program for low-income students.
Unbridled Change
$5,000 to support Take Back the Reins, a therapeutic horseback riding program for low-income
survivors of domestic abuse.
Warm Hearth Village
$3,000 to furnish handheld adaptive computers and specialized software to provide enrichment
and engagement to assisted living residents with cognitive impairments.
(540) 389-0244
www.freedomfirst.com
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Freedom First Credit Union
Awards and Recognit ion
Credit Union Awards
National Community Credit Union of the Year
This prestigious award from Credit Union National Association recognizes and honors community credit unions that
consistently excel in the advancement of the ideals of the credit union movement, are proactive in their community,
and provide a wide array of services that meet the needs of their diverse communities.
“Freedom First has been called ‘a community development company that’s also in the banking business’ and it’s an
apt description,” says Paul Phillips, President/CEO. “Winning the national Community Credit Union of the Year award
validates our efforts and strengthens our commitment to our members and the communities we share.”
Desjardins Adult Financial Education Award
Chosen by the Virginia Credit Union League as the best adult financial education program in the Commonwealth.
Dora Maxwell Award for Social Responsibility
The set-aside programs we developed with FHLB-Atlanta were chosen by the Virginia Credit Union League as the most
effective community-focused programs in the Commonwealth. Freedom First also won this award in 2011 for our
Responsible Rides auto loan program.
Create Jobs for USA
Awarded $20,025 from the Opportunity Finance Network and Starbucks to provide small business and
microenterprise loans.
Credit Unions Care Foundation of Virginia
Awarded $5,000 to expand Freedom First’s Responsible Rides auto loan program.
Wells Fargo NEXT Seed Capital Award
Awarded $100,000 from Opportunity Finance Network, the Kresge Foundation, and the John D. and Catherine T.
MacArthur Foundation to develop the American Dreamer Loan, which will support the path to citizenship for refugees
and immigrants.
(540) 389-0244
www.freedomfirst.com
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Freedom First Credit Union
Awards and Recognit ion
Individual Awards
Eugene H. Farley, Jr. Award of Excellence
Freedom First President/CEO Paul Phillips was honored by the Virginia Credit Union League in 2013 in recognition of
his outstanding contributions to the credit union movement, in particular in support of the credit union philosophy
of “people helping people.”
Credit Union Rock Star
Credit Union Magazine honored Paul Phillips as a “rock star”—defined as an ordinary person who manages to pull off
the extraordinary”—for his leadership in transforming Freedom First into the largest CDFI in Virginia.
Citi Leadership Program for Opportunity Finance
Freedom First’s Community Development Analyst Nicole Pendleton was chosen to participate in this inaugural
professional development program that supports CDFI efforts to effect structural and systemic change.
Sharing What We’ve Learned: 2013 Speaking Engagements
The Case for Ending Homelessness: Taking a Comprehensive Community Approach
Building Capacity: The Structure and Growth of Community Development Banks
Federal Reserve Bank of Richmond
From Purchase to Rehab: Show Me the Money
Roanoke Regional Housing Network Symposium
Small-Dollar Loans: Impactful and Sustainable Solutions
Borrow & Save: Breaking the Cycle of High-Cost Borrowing through Savings Mobilization
Tools and Strategies for Writing Successful Grant Applications
National Federation of Community Development Credit Unions
Credit Union Alternatives to High-Cost Payday Loans
CDFI Partnerships With Municipalities and the Private Sector
Opportunity Finance Network
(540) 389-0244
www.freedomfirst.com
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Freedom First Credit Union
Small Business Lending
Continued uncertainties in the economic climate mean that credit and capital remain out
of reach for many small businesses. While some banks have eased standards and terms on
commercial and industrial (C&I) loans in recent months, many commercial lenders report
continued tightening of lending standards on C&I loans.*
As a small business itself, Freedom First understands the
significant impact small businesses have in communities.
Our business lending initiatives are designed to support
the Commonwealth’s continued steady return to economic growth by providing much-needed capital to
small businesses.
Types of Business Loans
Owner-occupied real estate
Investment properties
Equipment loans for purchase and refinance
Working capital
Financing for grants and inventory
Construction/Permanent Loans
Multi-family
1-4 family for sale or rental
Retail structures
C&I (office, warehouse, and industrial buildings)
*Federal Reserve, “October 2011 Senior Loan Officer Opinion Survey on Bank Lending Practices.”
(540) 389-0244
www.freedomfirst.com
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Freedom First Credit Union
What really sets us apart?
Collaboration and Partnership
When developing new programs and advancing new initiatives, we first make two determinations: whether
supporting a similar nonprofit-run program would be a better use of our resources, and whether we can bring
community, business, and political leaders together to ensure the program helps as many people as possible.
Freedom First is a recognized leader in facilitating collaboration among diverse stakeholders who share the same
goals: community and economic development in Virginia’s Valley Region.
Nowhere is that collaboration more apparent than in Roanoke’s urban West End
neighborhood, a food desert where a boarded-up building is being replaced by
a full-service credit union that will house a permanent home for a local farmers’
market and a shell for a future community kitchen.
West End Village Station, a partnership between Freedom First, the City of Roanoke,
the West End Center for Youth, and the U.S. Department of the Treasury, is designed
to revitalize the historic, struggling neighborhood at the edge of Roanoke’s
downtown.
The project is made possible by an $850,000 CDFI Fund grant and a $343,176 block
grant from the City of Roanoke. Local businesses Building Specialists and Interactive
Design Group offered their services pro bono or at reduced rates. Community
leaders and residents have offered invaluable input and support for the project
throughout the planning process.
Partnerships such as West End are vital
for sustainable growth, especially in
an economic climate where resources
are limited. Partnerships ensure that
many stakeholders are committed to
the efficiency and effectiveness of
every initiative.
Some of Our 2013 Project Partners
Enterprise Car Sales | Total Action for Progress | New River Community Action | Goodwill of the Valleys
Bank-On Roanoke | Virginia Cooperative Extension | Federal, State, and Local Governments
Roanoke Valley Financial Fitness Coalition | Opportunity Finance Network
Family Promise of Greater Roanoke | Blue Ridge Independent Living Center
Council of Community Services | Botetourt Education Foundation
(540) 389-0244
www.freedomfirst.com
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With more than 46,000 members, assets of $317 million, and
10 branch locations, Freedom First Credit Union is the largest
CDFI in Virginia.
Branch Locations
Blacksburg
1204 South Main Street
Founded in 1956, Freedom First Credit Union is owned and
controlled by its members and operates for the purpose of
providing access to affordable, equitable financial and
development services to its members and the Roanoke
and New River Valley communities.
Membership is open to the entire community. Anyone
who lives, works, worships, goes to school, or owns a
business in Botetourt, Craig, Franklin, Montgomery, and
Roanoke Counties, including Roanoke, Radford, and Salem,
can join Freedom First Credit Union.
Christiansburg
417 North Franklin Street
Daleville
1171 Roanoke Road
Roanoke
2125 Colonial Avenue
1210 Patterson Avenue
(Coming Soon!)
5240 Valleypark Drive
(Operations Center)
5102 Williamson Road
Salem
1235 Electric Road
LewisGale Hospital
Steel Dynamics, Inc.
Vinton
203 Virginia Avenue
Paul Phillips
President/CEO
Freedom First Credit Union
5240 Valleypark Drive
Roanoke, VA 24019
[email protected]
(540) 389-0244
(540) 389-0244
www.freedomfirst.com
Virginia Tech
Squires Student Center
Federally insured by NCUA.