Citadel Credit Union Converts Charter
Citadel Credit Union has completed a charter conversion that expands its membership eligibility. The move is designed to support growth by allowing the credit union to serve more individuals, families, and businesses in its region.
With assets of approximately $6.6 billion and a membership base of over 285,000, Citadel is one of the largest credit unions in the Greater Philadelphia region. The charter conversion is a strategic move to facilitate further growth, building on a significant expansion of assets from $350 million in 2001 to $5.7 billion by 2023 under former CEO Jeff March, who retired after a 40-year career with the institution. The new Federal Multiple Common Bond charter allows Citadel to extend its services beyond its previous community-based boundaries in southeastern Pennsylvania. Membership is now open to individuals and businesses in neighboring states, including Delaware, New Jersey, New York, Maryland, Ohio, and West Virginia. This move is part of a broader trend of credit unions converting charters to gain greater flexibility and expand their field of membership for growth. This expansion aligns with Citadel's recent focus on growing its presence in Philadelphia. The credit union recently opened its first branch in the city's Overbrook Park neighborhood and has plans for more locations. These new branches are intended to serve as community hubs, offering financial education and partnership opportunities. The push into Philadelphia follows a 2024 settlement with the Department of Justice (DOJ) over allegations of "redlining". The DOJ alleged that from 2017 to 2021, Citadel failed to provide adequate mortgage lending services to majority Black and Hispanic neighborhoods. As part of the settlement, Citadel agreed to invest $6 million in a loan subsidy fund and open three new branches in predominantly Black and Hispanic neighborhoods in Philadelphia. Under the leadership of CEO Bill Brown, who took the helm in October 2023, Citadel has been undergoing a rapid transformation. This includes doubling its commercial lending team, relaunching its business banking group, and investing in technology to streamline services like digital account opening. Originally founded in 1937 as the Lukens Employee Federal Credit Union by employees of Lukens Steel in Coatesville, Citadel has a long history of expansion. A significant charter expansion in 2006 allowed it to serve five Philadelphia-area counties, growing it into a major financial institution in the region.
