Citadel Federal Credit Union to open new location in Philadelphia following discrimination settlement.

Chester County’s Citadel Federal Credit Union is poised to make a significant investment in urban development by establishing its inaugural city branch in the Overbrook Park neighborhood of West Philadelphia. This strategic decision aligns with the credit union’s commitment to expanding its footprint beyond suburban locations, fulfilling a promise made to enhance its community engagement.

City Councilmember Curtis Jones Jr., who represents the Overbrook Park area, expressed enthusiasm for Citadel’s choice to invest in a neighborhood that has seen some major financial institutions retreat. He emphasized the importance of such investments in urban areas, particularly at a time when many banks are facing pressure to concentrate services in wealthier locales.

The new branch will be located at 7557-61 Haverford Avenue. Citadel previously announced plans to broaden its operations into Philadelphia, following a legal agreement reached in 2024 that resolved a discrimination complaint lodged by the U.S. Department of Justice. The settlement required Citadel to open three urban branches and allocate at least million to improve access to mortgage and loan services within predominantly Black and Hispanic communities.

Founded in 1937 by steelworkers in Coatesville, Citadel has evolved from its early roots in Chester County to establish a network of branches that includes Montgomery, Delaware, and Bucks counties. The Justice Department’s complaint highlighted Citadel’s failure to fulfill its commitment to branch expansion in Philadelphia since 2006, when regulations allowed it to enroll members based on residency rather than employment ties.

The Overbrook Park branch represents the initial step in Citadel’s planned expansion within the city. Bill Brown, the credit union’s chief executive, highlighted ongoing efforts to identify additional sites in Northeast and Northwest Philadelphia. These efforts aim to serve neighborhoods largely comprised of people of color, identifying those areas with growth potential.

In addition to traditional banking services, the new branch will serve as a community hub, offering meeting spaces for local businesses and residents. Brown noted that Citadel has engaged with various community organizations to ensure its operations align with the needs and interests of the residents.

Citadel’s move comes during a period of overall contraction in the banking sector, where many institutions are closing branches in response to changing consumer behavior. Despite this trend, Citadel’s initiative mirrors similar expansions by other banks in the Philadelphia area, which are increasingly focused on establishing a presence in urban neighborhoods.

Overbrook Park is already home to various financial institutions and is strategically located near major transit routes and neighborhoods with varied socioeconomic backgrounds. Jones has stated that Citadel’s location decision illustrates the viability of the area, defined by its active community and a diverse population of long-term residents and newcomers alike.

Overall, Citadel Federal Credit Union’s commitment marks a new chapter in urban banking, aimed not only at providing essential financial services but also fostering community development and empowerment in Philadelphia’s underserved neighborhoods.