History

The credit union idea is a simple one: People should be able to pool their money and make loans to each other. It's an idea that evolved from cooperative activities in 19th century Europe.

Since that time, the idea's guiding principles have remained the same: (1) Only people who are credit union members should borrow there; (2) loans are made for "prudent and productive" purposes; (3) a person's desire to repay (character) is considered more important than the ability (income) to repay. Members are, after all, borrowing their own money and that of their friends. These principles still govern most of the world's credit unions.

As America grew in the early 1900s, the credit union idea caught on: Town needs financial services, town boosters gather in parish hall, boosters organize credit union. In Somerset, the year was 1936, the place was Panneton's Drug Store, the town was a community of farmers and working folks and the credit union they founded was Somerset Community Credit Union. It was the first financial institution in Somerset, a place where people with a common bond worked together for financial security.

In the 1930's big banks would only loan money to property owners. The credit unions lent to working people and made character loans - a loan that requires the borrower be of good character and working steadily. This was the only way a working person of '20s and '30s could borrow even a small sum of money.

Somerset Federal Credit Union was one of the first credit unions in the state to own and operate its own building at 1275 County Street. That building is still standing and now houses Frank's Hair Styling.

Founded on the principle of helping members better their financial situation, our mission has not changed since 1936. We're here to encourage thrift and make consumer loans available, keeping fees as low as possible.

As a credit union, we are a financial cooperative and a democratic institution. Which means that everyone we do business with is an owner and a member and has one vote at the annual meeting. There are no stockholders, so we are not profit-driven, we're service-driven. Money earned after expenses and reserves is returned to members as dividends.

And, true to our small-town roots, we treat all members as family.