History of Carolinas Credit Unions

North Carolina: Leading the Way in Cooperative Finance

Exterior of the Lowe’s Grove Credit Union, 1916

The credit union movement in North Carolina began with the vision of John Sprunt Hill, often called the “Father of Rural Credit.” Inspired by European cooperative finance models in 1913, Hill returned to North Carolina eager to help farmers suffering under the oppressive “crop-lien” system, which imposed interest rates of up to 50%. His work led to the McRae Rural Credits Act of 1915, one of the nation’s first credit union laws, setting the stage for community-driven financial solutions.

In 1916, Hill’s efforts led to the founding of Lowe’s Grove Credit Union in Durham County. Organized by 16 farmers who pooled $101.75, this was the first credit union in North Carolina and the Southern U.S. Lowe’s Grove inspired a wave of new credit unions across the state, and by 1920, North Carolina was home to 30 credit unions, which offered fair lending practices that helped farmers escape high-interest debt.

In 1918, Thomas B. Patterson organized Piedmont Credit Union in Greensboro, the first African-American credit union in both North Carolina and the U.S. This credit union empowered African-American farmers and workers through cooperative finance, helping them build savings and avoid predatory lending. Patterson’s work and the impact of Piedmont Credit Union were covered in Southern Workman, a prominent publication at the time, which highlighted the challenges African-American farmers faced and the community’s determination to achieve financial self-reliance.

Today, North Carolina credit unions serve nearly one in three residents, continuing a proud legacy of financial empowerment and community support.

South Carolina: Building a Cooperative Framework

South Carolina’s credit union history took root in 1921 with the efforts of Roy F. Bergengren, who worked with Clemson professors Dr. W.H. Mills and Dr. W.W. Long to establish the Clemson College Cooperative Credit Union. Mills, appointed by the U.S. Department of Agriculture, promoted credit unions across South Carolina, helping local farmers and veterans gain financial stability.

In 1924, Principal Rosa B. Cooley of the Penn School on St. Helena Island wrote in The Credit Union Bridge, America’s first credit union periodical, that the St. Helena Cooperative Society was planning to form a credit union. By March 1925, The Bridge reported that the cooperative society had reorganized under the South Carolina credit union law, becoming the St. Helena Cooperative Credit Union, furthering financial access for farmers in the community. Cooley to The Bridge: “with great gladness that the (credit union) is actually in existence and in working order. There has been a real demand from the people for this step.”

That same year, Charleston Postal Cooperative Credit Union was organized to serve postal employees. Enthusiastically supported by U.S. Postal Department Head Henry Dennison, Charleston Postal Cooperative CU quickly became a prominent part of the statewide movement. Its President, J. Gorman Thomas, later reflected, “That interest is alive and keen in the entire credit union movement. We should by all means continue to carry the movement through and ever onward.”

The 1934 Federal Credit Union Act led to the founding of both America’s Credit Unions and state leagues, including the North Carolina and South Carolina leagues, which promoted credit union growth throughout the Carolinas. Today, credit unions in the state serve more than 1.5 million people — a testament to the fortitude of those early leaders and to the value of the Palmetto State’s not-for-profit financial cooperatives.

History of the Carolinas Credit Union League

Our logomark, inspired by the Carrick bend knot

Established in 2014, the Carolinas Credit Union League was created through the unification of the North Carolina and South Carolina leagues, each founded in 1934. Rooted in a shared commitment to the cooperative spirit, the League serves as the leading advocate and catalyst for credit union success across the Carolinas.

The League’s brand, featuring the Carrick bend knot as its logomark, symbolizes the strength of two threads—North and South Carolina—woven into one, stronger entity. This emblem of unity underscores the League’s mission to support Carolinas’ credit unions, ensuring they thrive and continue serving as vital community resources.