Credit union shows
its financial muscle

By William Kenny
Times Staff Writer

When other credit unions were worried about folding with their sponsor companies in the 1980s, managers of the former Budd Manufacturing Co.’s credit union were thinking about diversification.
As a result, the credit union has more than survived in the aftermath of the closing of both of Philadelphia’s Budd Co. plants, one in Hunting Park and another in Somerton.
In fact, the credit union, in its 21st year under the American Heritage name, has continued to grow. Just last week, the Bustleton-based financial institution celebrated the opening of its 18th Philadelphia-area branch at 430 Rhawn St. in Fox Chase.
The new branch is expected to serve the employees of three of the credit union’s local sponsor organizations — Fox Chase Cancer Center, Jeanes Hospital and St. Cecilia Parish — along with other members who live in the neighborhood, according to longtime American Heritage president and CEO Bruce K. Foulke.
Foulke was just 25 when he became the credit union’s chief executive in 1979. Since then, both he and American Heritage have done a lot of growing.
"(In 1979) we had four or five million (dollars) in assets and one small branch in Hunting Park," Foulke said. "We had four-thousand members. Now, we have ninety-thousand members and six-hundred million (dollars)."
The American Heritage formula for success has been part member service and part community service, as well as capitalization on changing market conditions, according to the chief executive.
Founded by Budd Co. employees in 1948, the credit union remained a single-sponsor organization for more than 30 years. Federal deregulation that took effect two years after Foulke’s arrival finally opened the door for members from outside the Budd Co.
Though the new regulations applied to other credit unions, too, not all sought out new business like the Budd credit union. But Foulke and his colleagues viewed expansion as a necessity.
Budd had been founded during the golden age of American industry as a manufacturer of stainless-steel rail cars, airplanes, auto parts and other items. Rumors had swirled for years that the end was near for the local shops. Many industrial-era companies were in a similar position, as were their credit unions.
"We realized that a lot of credit unions were going to go out of business," Foulke said. "We were one of the more aggressive ones. We started (expanding) in the eighties, where most credit unions didn’t do it until the nineties."
Eventually, the talk proved true, as Budd shut down its Philadelphia operations. Foulke’s credit union adopted the American Heritage name in 1987 and built its highly recognizable colonial-style headquarters on Red Lion Road near Jamison Avenue in 1993.
The choice to stay in the city may have defied conventional wisdom at a time when many businesses were leaving town in search of better tax structures and relocation incentives elsewhere.
"Philadelphia is a Colonial town. It’s where America started, and American Heritage started here," Foulke said.
It also made sense to stay, the CEO explained, because of the positive feedback the credit union has received from communities where it has sought to expand.
"It’s because every time we go into a place, we’re usually fixing up the place," Foulke said.
The headquarters site previously was an unsightly junkyard, he said. A recently reopened Hunting Park branch was a gas station, as were offices in several other locales, including Foulke’s hometown of Perkasie. The new Fox Chase branch formerly held a series of ill-fated businesses, including a fitness club and a martial arts studio.
"That’s why the community welcomes us — because they know we’re going to improve the value of properties (around the branch) and the financial lives of the residents," he said.
The Fox Chase branch is open Monday to Wednesday, 8 a.m. to 5 p.m.; Thursday, 8 a.m. to 6 p.m.; Friday, 8 a.m. to 7 p.m.; and Saturday, 9 a.m. to 3 p.m.
The branch contains five teller stations, three member-service offices, an Internet café, a free outdoor ATM and a free coin-counting machine.
It opened to customers earlier this month. A ribbon-cutting ceremony on May 16 included Foulke, City Councilman Brian O’Neill, Fox Chase Homeowners Association president Craig Turner, Fox Chase Town Watch vice president John Duffy and numerous other local and credit union officials.
In addition to a full complement of financial services, including accounts, investment services, loans, mortgages and insurance products, the branch will bring American Heritage’s high level of civic involvement directly into the neighborhood.
Each year, American Heritage awards college or trade school scholarships to five high school graduates, Foulke said. In addition, the credit union hosts the annual Gelatin Olympics to raise money for its own Kids-N-Hope charity.
Kids-N-Hope supports music therapy for children with developmental disabilities and chronic illnesses at Children’s Hospital of Philadelphia. Since 1996, the effort has raised $400,000, Foulke said.
On Friday, he was recognized for his work with Kids-N-Hope when the Northeast Regional Center of the Community College of Philadelphia gave him its Distinguished Leadership Award in the business community category.
Kids-N-Hope will benefit again when this year’s Gelatin Olympics is held at 6 p.m. Wednesday, June 13, at Cannstatter’s, 9130 Academy Road. Entrants must seek sponsors for their participation. Events will include the Ultimate Gelatin Slide, Gelatin Balloon Toss and Gelatin Eating Contest. Call Linda Cumpper at 215-969-0777, Ext. 2920, for information.
"People pay to see their bosses slide in Jell-O. That’s what it’s all about," said Foulke. ••
For more information about American Heritage Federal Credit Union, visit www.amhfcu.org or call 215-969-0777.
Reporter William Kenny can be reached at 215-354-3031 or bkenny@phillynews.com