Area Educational Credit Union

What Area Educational Credit Union does

Area Educational Credit Union (AECU) is a state-chartered, member-owned credit cooperative founded in 1960 in Mattoon, Illinois, serving employees of 16 area school districts plus Lake Land College and the Regional Office of Education across central Illinois. As of 2025, the credit union reports more than 2,300 members and over $30 million in assets, with a paid staff of approximately 8 led by President/CEO Kerry Fearn and a 10-member volunteer Board of Directors. AECU operates from a single branch at 812 Charleston Avenue in Mattoon and is regulated by the Illinois Department of Financial & Professional Regulation, with NCUA-insured deposits up to $250,000 per member.

The credit union's core product portfolio centers on consumer lending — auto loans (rates starting at 3.50% APR for new vehicles, up to 72-month terms and 120% of retail financing), powersports loans (4.50% APR and up), personal loans (12.00% APR, up to $5K standard or $10K with co-signer), and share-secured loans (3.50% APR) — paired with savings products including share accounts (2.01% APY), Christmas Club, Traditional and Roth IRAs (2.26% APY), and Coverdell Education Accounts. Underlying technology is delivered through third-party vendors: MessagePay for text-based loan payments with debit/ACH options, a financial-net.com online banking portal, EZStatements for legacy document access, and SmartSource Solutions as website host. Member-facing channels include the website (myaecu.com), quarterly newsletters, community events (CUKind Day, Shred Day), and the annual meeting.

AECU's revenue model is interest-rate-spread driven: net interest income on the loan portfolio is the primary stream, supplemented by transaction fees (MessagePay $6.99 debit card convenience fees), insurance commissions from CUNA Mutual Group on GAP and Credit Life/Disability products, and interchange. Distribution relies on payroll deduction arrangements with member employers as the primary recurring touchpoint, supported by online banking and a single physical branch. As a not-for-profit cooperative, AECU returns earnings to members through competitive loan pricing and higher savings dividends rather than distributing profit to external shareholders, and membership is restricted to the defined education-employee field plus their immediate families.

Name

Area Educational Credit Union

Legal name

Area Educational Credit Union

Website

https://myaecu.com

Company type

Private

Founded year

1960

Operating status

Operating

Headcount range

11–50 employees

Short description

Area Educational Credit Union is a member-owned, state-chartered credit cooperative in Mattoon, Illinois, serving employees of 16 school districts plus Lake Land College with consumer loans, savings accounts, and retirement products.

Ownership category

akta.pro rank

Product category

Credit Union / Consumer Banking

NAICS

Credit Unions (52213)

SIC

Personal Credit Institutions (6141)

akta.pro primary industry

Employer/Occupational Credit Unions (FSABAEAB)

Keywords

• Credit union lending
• Savings accounts
• Auto loan financing
• Consumer banking services
• Educational credit union

Headquarters

HQ city

Mattoon

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure, Others

Revenue model

1. Loan Interest Income: Primary revenue from interest earned on auto loans, powersports loans, personal loans, and share secured loans. Rates vary by loan type, term, and loan-to-value ratio.
2. Payment Processing Fees: Transaction fees from MessagePay service - $6.99 per debit card payment; ACH checking account payments are free.
3. Savings Dividends: Shares, Christmas Club, Traditional IRA, Roth IRA accounts earn dividends. Dividend rates: 2.00% (2.01% APY) for shares; 2.25% (2.26% APY) for Traditional IRA.
4. Insurance Products: GAP insurance and Credit Life/Disability insurance offered through CUNA Mutual Group, providing protection products for vehicle loans.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels5 records

Core offering

Area Educational Credit Union is a member-owned, not-for-profit cooperative financial institution that provides consumer loans (auto, powersports, personal, share-secured), savings products (shares, Christmas Club, Traditional/Roth IRAs, Coverdell Education Accounts), and ancillary services (GAP insurance, Credit Life/Disability insurance, notary, online banking, and MessagePay text-based payments). The credit union primarily serves employees of 16 area school districts in Illinois plus Lake Land College and the Regional Office of Education, and their immediate family members.

Product overview

Area Educational Credit Union is a member-owned financial cooperative offering a comprehensive suite of banking products and services primarily serving employees of 16 school districts and Lake Land College. The core product portfolio centers on loan products (auto, powersports, personal, and share-secured loans) and savings products (shares, Christmas Club, Traditional/Roth IRAs, and Coverdell Education Accounts). The credit union differentiates through member-owned cooperative structure, competitive rates (auto loans as low as 3.50% APR, savings at 2.01% APY), and ancillary services including GAP insurance, Credit Life & Disability Insurance, MessagePay text-based payments, online banking, and free notary services. The company emphasizes the cooperative model where members are owners and earnings benefit members through better rates.

Differentiator

Problem solved

Functional benefit

Products and services

• Auto Loans Vehicle financing for new and used cars with rates starting at 3.50% APR for new vehicles. Terms up to 72 months with financing options up to 120% of retail value based on NADA valuations. Available to credit union members.
• Powersports Loans Financing for recreational vehicles including campers, boats, motorcycles, ATVs, and side-by-side vehicles, with rates starting at 4.50% APR (rates adjusted 2% higher than vehicle loans).
• Personal Loans Unsecured loans for unexpected expenses, vehicle repairs, bill consolidation, tuition, remodeling, and financial emergencies. Limits of $5,000 standard or up to $10,000 with approved co-signer, at 12.00% APR up to 24 months.
• Share Secured Loans Loans secured by existing member savings at 3.50% APR up to 72 months. Pledged shares continue earning dividends while serving as collateral, useful for building credit history.
• Guaranteed Asset Protection (GAP) Insurance Optional protection through CUNA Mutual Group that covers the gap between vehicle insurance payout and loan balance if a vehicle is totaled or stolen. Includes deductible assistance and a $1,000 loan reduction benefit.
• Credit Life & Disability Insurance Voluntary insurance through CUNA Mutual Group that makes loan payments during covered disability or life events, protecting both borrower and dependents.
• Share Accounts Member savings accounts earning 2.00% dividend rate (2.01% APY) with a minimum balance of $5.00.
• Christmas Club Account Holiday savings account earning 2.01% APY, allowing deposits and withdrawals at any time.
• Traditional IRA Individual Retirement Account earning 2.25% dividend rate (2.26% APY), allowing contributions up to $7,500 in 2026 with potential tax-deductible benefits.
• Roth IRA Roth Individual Retirement Account with tax-free growth potential.
• Coverdell Education Accounts Education savings account (formerly Educational IRA) allowing contributions up to $2,000 per child annually.
• Online Banking Digital banking platform for members to access accounts, view balances, manage finances, and conduct transactions online.
• MessagePay Loan Payments Secure text-based loan payment system enabling members to receive payment reminders and make loan payments via text message from 217-236-6293, with debit card ($6.99 fee) or free ACH from checking account.
• Notary Services Free notary services available by appointment for credit union members at the Mattoon branch.

Quantifiable outcome

• Rates as low as 3.50% APR on new auto loans
• +3 more outcomes

Named customers3 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

Three partnerships are on record, tiered core.

• CUNA Mutual GroupcoreStrategic or Co-development PartnerCUNA Mutual Group provides insurance products including MEMBER'S CHOICE Guaranteed Asset Protection (GAP) and Credit Life/Disability Insurance for AECU members. GAP Plus with Deductible Assistance helps protect members from vehicle loan gaps in total loss situations. Insurance is voluntary and offered at loan closing.
• Illinois Credit Union LeaguecoreStrategic or Co-development PartnerState-level credit union league organizes CUKind Day community service events. AECU participates annually, selecting local charities and schools to receive volunteerism, support and donations. Prize winners from membership promotions designate local charities to receive matching funds.
• MessagePaycoreTechnology or IntegrationThird-party payment processing platform enabling text message reminders and secure online/mobile loan payments. Provides encrypted payment portal for debit card and ACH bank account payments.

Scale indicators3 records

Recent moves2 records

Expansion highlights5 records

Direct peers

• SchoolsFirst Federal Credit Union: SchoolsFirst FCU is the largest credit union in the U.S. exclusively serving educators and school employees, offering auto loans, savings, and retirement products on a cooperative model directly comparable to AECU's mission, structure, and product mix.
• BCU (Baxter Credit Union): BCU is an employer-based credit union founded on serving employees of Baxter International, now operating across select employer groups with a member-owned cooperative model. Comparable to AECU on occupational charter logic and consumer lending focus.
• Self-Help Federal Credit Union: Self-Help Federal Credit Union is a community development credit union with an explicit mission of serving education employees, underserved communities, and mission-aligned members — a structural and mission peer to AECU's educator-occupational charter.
• Service Credit Union: Service Credit Union serves a defined occupational/affinity field of membership and operates consumer loans, savings, and digital banking with member-owned cooperative governance — closely mirroring AECU's operational and governance structure.
• Illinois Educators Credit Union: Illinois Educators Credit Union is a state-chartered, education-focused credit union serving school district employees across Illinois. It is the most directly comparable peer to AECU in terms of field-of-membership (educators), product set, and Illinois regulatory framework.

Regional players

• Great Lakes Credit Union: Great Lakes Credit Union is an Illinois-based community credit union serving select counties in the Chicago region. It is comparable to AECU as a regional Illinois credit union competing for retail deposits and consumer loans in the same state.
• First Northern Credit Union: First Northern Credit Union is a small Illinois community credit union comparable in scale and rural/Midwest footprint to AECU, with overlapping member services and a similar local cooperative approach.

Others

• CUNA Mutual Group: CUNA Mutual Group is AECU's insurance partner, providing GAP, Credit Life and Disability products. It is the dominant credit union insurance carrier in the U.S. and a key enabling/commercial partner rather than a direct competitor.
• Illinois Credit Union League: The Illinois Credit Union League is the state trade association organizing CUKind Day and industry advocacy for Illinois credit unions, including AECU. It is an enabling/ecosystem peer rather than a competing institution.

Broad incumbents

• Connexus Credit Union: Connexus Credit Union operates as a digital-first broad credit union serving employer groups and consumer members nationally with similar consumer loan and savings products, competing with AECU for share-of-wallet among education-employee members.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Area Educational Credit Union