Don?t call it a bank.
Based in Hunt Valley, Point Breeze Credit Union fits into the area?s crowded and complex banking scene by catering to businesses and their employees. This is the opposite of what many area banks do ? drawing their customer base from the general public. Working out deals to become the financial institution of record for area companies like McCormick & Co., Baltimore Gas and Electric, and Procter & Gamble, the credit union has established its own built-in customer base.
Across the region, Point Breeze serves about 480 companies, with more than 48,000 members.
“We have a closer connection with the companies we work with,” said Paul F. Torbeck, president and chief executive officer of Point Breeze. “We are even in several company handbooks as a benefit.”
Compared with a bank, credit unions offer several advantages. Unlike banks, credit unions are nonprofit organizations, do not have shareholders and are not subject to taxes that other financial institutions are, according to the economic information Web service Beehive.
On average, a credit union offers interest rates about 3 percent lower on credit cards and about 1.35 percent lower on a 48-month new-car loan, MSNmoney.com reported.
Also, credit union savings accounts have about .21 percent higher interest yields than the national average for banks.
But there are drawbacks.
While almost everyone qualifies to be a member of a credit union somewhere, the credit unions each have membership requirements ? whether based on family employment, geography or religion.
Some credit unions also require a membership fee, which can be substantial, or a nominal charge, Beehive stated. Another issue credit unions may face is a lack of ATM locations or offices.
However, Point Breeze is attacking that problem head-on.
This month, the credit union broke ground on its new Bel Air location. Citing retired employees moving out of the city and expanding membership, Point Breeze is looking to supplement its Hunt Valley and Golden Ring locations.
“We have always looked to our job as doing the best we can with our members, and the rest will come together,” Torbeck said. “We don?t look at it as ?hey, we want to be a billion-dollar company in five years.? We just look at it as ?if we do the job right, good things will happen.? ”
