News Release -- 2003

Brethren Benefit Trust signs a partnership agreement with Brethren Employees’ Credit Union

Oct. 1, 2003 Elgin, Ill.

Brethren Benefit Trust and Brethren Employees’ Credit Union (BECU) today signed a partnership agreement that calls for BBT to become the credit union’s third party administrator (TPA) in 2004. As the TPA, BBT will assume the credit union’s daily administrative responsibilities, meaning all staff and office functions.

This agreement is viewed by both agencies as the first step in what could lead to expanded credit union membership availability and services.

“The potential to offer many financial services to all Brethren is great,” said Wil Nolen, BBT president. “With BECU’s competitive rates and BBT’s socially responsible investing strategy, all Brethren are expected to soon be able to benefit from myriad financial services that will help support the church while working to promote Brethren values throughout corporate America.”

“It makes a lot of sense to combine an established member-owned credit institution with the national denominational agency whose charter calls for it to provide financial services to Church of the Brethren agencies and individuals,” said Russ Matteson, BECU board chair. “We see this partnership as opening up many opportunities for both organizations, to the benefit of all Church of the Brethren members.”

Discussions about forging a partnership agreement between BBT and BECU have been ongoing for nearly two years. A third party administrator agreement was tentatively reached in July, but was contingent on a market study to be conducted this past summer to assess whether a credit union with a broader membership base and expanded services would be utilized by Brethren nationwide. After conducting focus groups at the 2003 Annual Conference and initiating a survey that was mailed to more than 9,000 Brethren across the country, BBT and BECU both believe the answer is “yes.”

With the TPA partnership agreement now signed, both agencies will begin exploring the possibility of expanding the credit union’s membership base and services. BECU currently serves 1,200 employees of Brethren-related congregations and agencies and their family members and Church of the Brethren members who reside in Illinois and Wisconsin. Its loan services consist of new and used auto, motorcycle, and boat loans, and general unsecured loans. Its savings services include general savings accounts, Certificates of Deposit (CDs), and Individual Retirement Accounts (IRAs).

The agreement signed today calls for BBT to assume all BECU staff and office functions beginning April 1, 2004. Because BBT will assume the responsibility of staffing, BBT will soon announce a job position opening for the director of Credit Union Operations.