Expansion News

We are stronger together.
We are proud to start a new chapter with FSB, A Division of Y-12 Credit Union, bringing together the best of both organizations.
FSB, A Division of Y-12 Credit Union logo

Bringing together the best of both.


Yellow atom icon"This is an exciting and transformative moment for our organization. The completion of this acquisition allows us to bring our Credit Union membership benefits to thousands of new individuals and businesses throughout Southeast Kentucky and Northeast Tennessee. We’re honored to continue FSB’s long-standing community legacy while introducing expanded services and digital tools that create even more financial opportunity."

- Dustin Millaway, Y-12 Credit Union President/CEO


Yellow atom iconTogether, Y-12 Credit Union and FSB bring more than 200 years of combined service to the region—grounded in shared values of community, personalized support, and long-term financial well-being.

FSB customers will benefit from access to a wider selection of loan products, additional branch locations, enhanced digital banking capabilities, and expanded investment and retirement services. More importantly, Y-12 Credit Union remains committed to maintaining the personalized, community-first approach on which both institutions have built their reputations.

Y-12 Credit Union at a Glance

115k+
member-owners		$2.15B
in assets		350+
dedicated employees		16
East Tennessee Branches
30k+
surcharge-free ATMs nationwide		5-star
rating for strength and stability by Bauer Financial		$2.1M
in grants through the Y-12 FCU Gives Foundation since 2017		7+
decades as a trusted local financial partner

TIMELINE

Planning a future of growth.


NOW

Effective July 1, 2025, the acquisition of First State Bank of the Southeast is officially complete. FSB's eight branch locations are part of the Y-12 Credit Union branch network. For now, these branches will continue normal operations as FSB, A Division of Y-12 Credit Union.


NEXT

A full system integration will be completed sometime in 2026.

GROWING LOCALLY

This acquisition marks a significant milestone as we expand our seventy-four-year-old community-focused brand beyond the borders of Tennessee.

FREQUENTLY ASKED QUESTIONS

You may be asking...

Acquisition Information

  • First State Bank of the Southeast (FSB) has officially joined Y-12 Credit Union. Starting July 1, 2025 FSB began operating as part of Y-12 Credit Union.

  • This partnership is a proactive step taken by two financially sound institutions with similar values and cultures. It supports Y-12 Credit Union’s growth strategy by expanding its footprint into a new market. The partnership will provide members and employees the best of both organizations as well as the ability to offer expanded products and services, more financial assets, and combined technology.
     
  • For now, the acquisition will not result in any changes to the way FSB customers do business. Notice will be given well in advance of any changes that may impact you.

  • On July 1, 2025, all FSB accounts will become Y-12 Credit Union accounts. There are no immediate changes to FSB accounts, debit cards, checks, or access to services. We will provide at least 30 days' notice before any changes related to system integration take effect. Customers will continue conducting business as usual.

    • Enhanced Digital Banking & mobile app
    • Low, competitive rates on loans
    • Variety of mortgage loans
    • Higher deposit rates
    • Free financial education
    • Low fees
    • 24 branch locations throughout East Tennessee and Southeast Kentucky



Credit Union Information

  • Credit unions look a lot like banks, but there are some major differences. Unlike banks, credit unions are not-for-profit financial cooperatives that are owned by their members and governed by a volunteer board of directors. Like banks, credit unions accept deposits, make loans, and offer a wide array of other financial services for consumers and businesses. As member-owned financial cooperatives, credit unions provide a safe place to save and borrow money at competitive rates.

  • As a financial cooperative, a credit union acts on behalf of its membership, which is unified by a common bond known as a field of membership. Each member is an equal owner with equal voting rights. Members are not shareholders, and their individual financial standing in the credit union is not relevant. A credit union returns profits to its member-owners in the form of higher deposit rates, lower loan rates, low to no fees, while focusing on its members’ financial wellness.

  • Yes. Just as banks are insured by the Federal Deposit Insurance Corporation (FDIC), Y-12 Credit Union is insured by the National Credit Union Administration (NCUA). Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. Visit www.ncua.gov for more information.

    *Supplemental insurance may be available for public funds and other large depositors.
  • Y-12 Credit Union is a not-for-profit financial institution that has been serving the East Tennessee community and transforming the lives of members since 1950. From humble beginnings, they have grown to a $2.15 billion institution with 16 branches serving over 115,000 members.

    As a member-owned, not-for-profit financial cooperative, Y-12 Credit Union understands the importance of serving others and giving back. They do it every day in service to their members and local businesses. They truly believe that giving lifts everyone up and makes us all stronger while reflecting the overall credit union philosophy of “People Helping People”.

  • Y-12 Credit Union is headquartered in Oak Ridge, Tennessee, and has 16 branches in Anderson, Blount, Campbell, Knox, Loudon, Roane, and Sevier counties.


FSB Customer Information

  • We’re happy to announce that all FSB branches will remain open. You can count on the same great team to provide you with the exceptional service you’ve come to expect.

  • Our intent is for all FSB’s employees to maintain the same or a substantially similar role after the acquisition is complete. In fact, the acquisition creates a tremendous amount of opportunity for existing employees to expand their career options in the future.

  • Not yet. We’re working out the details to combine our systems. Until further notice, please continue to visit your current branch.

  • Nothing right now, it’s business as usual at your local branch. Checks, debit cards, and credit cards will continue to work like they do now.

  • At this time, your account number and online access will remain the same. If changes are needed during the transition, you will be notified well in advance, and we will assist you every step of the way.

  • For now, everything will continue to work the same. We are committed to making the transition as seamless as possible.

  • Y-12 Credit Union is a member of the Co-op surcharge-free ATM network. After the acquisition is complete, FSB customers will have access to over 30,000 surcharge-free ATMs.


FSB Commercial Account Information

  • No, you will continue to work with the same loan officer that you know and trust.

  • At this time, nothing is changing. It’s business as usual until regulatory approval is complete. Most accounts and loans will remain the same, but due to regulatory requirements, a few commercial loans may need a minor modification. If this affects your account, your commercial account lender will contact you directly to guide you through the process. Rest assured, we’re committed to keeping you informed every step of the way.

  • You will continue to work with your current loan officer for any new requests.

  • Yes. Just as banks are insured by the Federal Deposit Insurance Corporation (FDIC), Y-12 Credit Union is insured by the National Credit Union Administration (NCUA). Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. Visit www.ncua.gov for more information.

  • Yes. Large commercial accounts, including public funds, will be insured through ModernFI. You will continue to bank as usual, with no changes to your coverage.


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