ALERT: Family First has recently been made aware of a scam spoofing both our 585.586.8225 and 1.800.356.1101 phone numbers. Please exercise caution if you receive a phone call claiming to be from our Fraud Department. Learn more here.

All Family First branches and the call center will be closed on Monday, May 27 for Memorial Day. We hope you have a safe and enjoyable holiday.

Family First will be holding our Annual Meeting on Wednesday, March 24 at 8:30 AM at our Browncroft Office. Click this link to join us virtually through Microsoft Teams.  

The Impact of Rising Interest Rates on Financial Institutions

Last Updated

October 2, 2023

Written By

Tom Dambra, Family First CEO

In these challenging economic times, we’ve all felt the pinch of rising costs and interest rates. Your Credit Union is no exception. Let’s take a closer look at the factors contributing to these cost increases and how Family First is proactively adapting to ensure we continue to provide excellent member service while staying financially stable in the years to come.

Impact of Loan Rates: Over the past few years we have seen an increase in interest rates across various financial products, including mortgages, car loans, personal loans and more. These rate hikes, coupled with the cost to buy, have started to affect the economy by slowing down loan volumes. As the cost of borrowing rises, consumers are becoming more cautious about taking on debt, which can have a ripple effect on overall economic activity. In addition, recent forecasts suggest that these higher rates may be sticking around for longer than they were initially anticipated.

Employee Compensation: Our dedicated employees are the backbone of this credit union. They work tirelessly to ensure your financial well-being, and it’s crucial to keep their compensation competitive to retain and attract top talent. Rising inflation has made this task more challenging. To address this, we’ve made it a priority to fairly compensate our team members so they can keep up with the cost of living and continue to serve you, our members, effectively.

Third-Party Provider Costs: Family First Credit Union collaborates with over 100 third-party providers in order to deliver top-notch service to all of our members. These partnerships are essential in providing you with the convenience and quality you deserve, however, like many businesses, these providers have also been impacted by escalating costs. As a result, we’ve had to absorb some of these cost increases to maintain the high standards and quality you expect and deserve from us.

In light of these challenges, you can rest assured that Family First is taking proactive measures to position itself for long-term sustainability and excellence. Here’s how:

  1. Streamlining Operations: We are constantly evaluating our internal operations to identify areas where we can optimize efficiency without compromising the quality of our services. This includes reviewing internal processes and leveraging advancing technology to reduce operational costs.
  2. Diversifying Revenue Streams: To mitigate the impact of slower loan volumes, we’re exploring new avenues for revenue generation. By diversifying our offerings and exploring innovative financial products, we aim to ensure our long-term financial stability.
  3. Member Education: We understand that financial literacy is key to navigating a changing economic landscape. We are committed to providing resources and educational materials to help you make informed financial decisions, especially in times of uncertainty.
  4. Adaptation and Flexibility: Our team remains agile and ready to adapt to changing circumstances. By closely monitoring economic trends and staying informed about potential rate adjustments, we can better position ourselves to meet your evolving needs while adapting to the ever-changing banking environment.

While the rising costs of running a credit union have faced us with unique challenges, our team at Family First is dedicated to maintaining its commitment to you, our valued members. By addressing these challenges head-on through cost management, revenue diversification, and ongoing education, we are confident in our ability to weather these economic shifts and continue to provide excellent service in the years to come. We thank each and every one of our members for their trust and partnership as we’ve navigated these waters over the past few years and as our credit union continues to grow and adapt.


Tom Dambra became the CEO of Family First Credit Union in 2015. He earned his bachelor’s degree in accounting from Boston College and his MBA from RIT, and has decades of experience in the banking industry. Tom is a Rochester native, is an active member of the Rochester community, and held the Director of Finance position on the Penfield Business Chamber’s Board of Directors from 2016-2022.

You are now leaving

By accessing this link you will be leaving the Family First Federal Credit Union’s website and entering a website hosted by another party. Family First Federal Credit Union is not responsible for its products, services, or overall website content. We encourage you to read and evaluate the privacy and security policies of the site you are entering, which may be different than those of Family First Federal Credit Union. If you choose to conduct business there, you will be conducting business with another party’s website.