In 1951 black teachers and employees did not have a financial institution that would accept their money or make them loans. Because they possessed the same financial needs as their counterparts, the following people established on January 15, 1951 the Galveston School Employees Federal Credit Union by purchasing one share for five dollars ($5.00) and a twenty-five cents ($.25) joining fee: J. H. Clouser, Byrdie F. Buill, Grant Prater, Herbert Coleman Jr., Charles Moore, Cornelius Harris Jr., Mrs. M. J. Jones, Willie Mae Gray, Lynne Nita Pope and Mable Caldwell.

The driving force behind the organization of the Credit Union was the Black Galveston Association of Teachers and Federal Examiner Dean H. Hair. Both worked very closely with the teachers' group to secured Charter #07092 for the Credit Union on January 24, 1951. Final approval from the Bureau of Federal Credit Unions came on February 2, 1951. The original charter restricted the membership to the colored teachers of Galveston County. On October 4, 1955 the Credit Union's charter was amended to restrict membership to Galveston Independent School District employees, their immediate families and organizations of such persons. It was not restricted on the basis of ethnicity. Anyone employed by the Galveston Independent School District could join. Board members were J. H. Clouser, President; Frank Windom, Vice President; Randall Sterling, Treasurer; and V. J. Dezon, Secretary.

The Credit Union during these lean years operated on a very limited basis. Passbook savings and small loans were the only services offered. It was not until the late sixties and the early seventies that the Credit Union began rapid growth. Shares grew from 1971 to 1973, ranging from $71,593 to $125,400. Also during this time, loan balances increased from $51,907 to $128,251.

In April 1974, the Board of School Trustees for the Galveston Independent School District authorized payroll deduction for savings and loan payments. This one service caused the greatest change in the Credit Union's expansion. In 1978, a part time clerk, Gailand Miller was hired and worked closely with the Assistant Treasurer, Edward L. Clack. Then in 1980, a full time clerk, Evelyn Gulley was hired to operate the Credit Union during the day. Prior to this time, the Credit Union had operated from the home of the Assistant Treasurer. Before Mrs. Gulley was hired, all transactions were made in the evening or at night. The members would call Mr. Clack's residence to make their request. Share withdrawals would be picked up from Mr. Clack's office at the GISD Administration Building or sent through school mail. Loans, however, were picked up between 7:30 p.m. and 9:00 p.m. After a full time day clerk was hired, office hours were established from 9:00 a.m. until 4:00 p.m., Monday through Friday.

In April of 1982, the GSEFCU Board decided that it was time for the Credit Union to shape up its image. With the assistance of CUNA Data, the Board decided to convert to the batch system of bookkeeping. Also at this time, a space had become available at one of the elementary school campuses. (Alamo) The board decided that an office building would give members more of a feeling that the Credit Union was a full service organization. Thus, the conversion and the move were completed by the end of April 1982.

Beginning January 1, 1983, the Board increased the joining fee to one dollar ($1.00). On March 6 of that same year, the second treasurer, Mr. Charles Scott Jones passed away. His dedicated service will always be remembered. Following Mr. Jones' death, Mr. Edward L. Clack was appointed treasurer. With an office and normal hours of operation, the Credit Union grew by leaps and bounds. By the end of May 1984, the Credit Union had reached the million dollar mark.
In July 1985, the Board authorized the issuance of Certificates of Deposits in amounts not less than $20,000. This influx of funds gave the Credit Union an adequate cash flow for a good loan program. By year end 1985, share deposits had increased to $1,210.998.

The tragedy of losing another Board member struck again in February 1987 when the only President the Credit Union had ever had, Mr. J. H. Clouser died. Mr. Clouser was a continuous source of inspiration for the Credit Union for 39 years. Other faithful Board members who have passed on are: Mrs. V. J. Dezon, Mr. Frank Windom, Mr. Richard Haller, Mrs. Ardella Goodwin and Mrs. Minnie Deutsch.

Because of competitive interest and dividend rates, growth in shares and loan increased tremendously over the years. Mr. Clack joined Evelyn in the office on a full time basis on January 1, 1995. The Credit Union then moved to a larger area in January 1997.
Thus fifty years of continued growth and dedicated service from the Board and staff to members of GSCFCU and their families in the Galveston Independent School District account for this Credit Union's current status. As we look to the future, our effort will be to prepare for the challenges of the "New Millennium".