DALLAS-- ALM First has successfully launched what it is calling a "first-of-its-kind" loan fund for credit unions.
The ALM First Loan Fund Investment Pilot Program is a new model whereby ALM First can pool funds for credit unions for the specific purpose of buying loans from other credit unions, the company explained.
"At Pennsylvania State Employees Credit Union, we're always looking for new opportunities to enhance our balance sheet and, ultimately, create more value for our members. We're excited to be among the first credit unions to invest in the ALM First Loan Fund," said Gina Seibert, CFO for Pennsylvania State Employees Credit Union.
The firm will host an investor call to share more details about the loan fund and discuss future opportunities for other credit unions to participate on April 23 at 2 p.m. CT. Interested credit unions may register online or contact us at info@almfirst.com.
"The benefits of this structure include shared underwriting and operating expenses to improve scalability, transparent loan pricing for both buyers and sellers, enhanced liquidity options for sellers, an efficient excess cash investment mechanism for buyers, and a clear fee structure. Inaugural ALM First Loan Fund investors include Bank-Fund Staff Federal Credit Union, among others," ALM First said.
“We’re thrilled to launch this innovative loan fund to benefit both buyers and sellers,” said Travis Goodman, CFA and principal of ALM First. “In our role as a trusted advisor to credit unions across the country, we’re among the first to pinpoint emerging trends and industry needs. Innovative solutions such as this loan fund can help clients prudently solve today’s challenges while positioning themselves for future growth and stability.”
The ALM First Loan Fund Investment Pilot Program, which the firm previously received NCUA approval to launch, is limited to 30 complex federal credit unions and state-chartered credit unions with federal parity. The fund invests in consumer loans with maturities under 10 years along with overnight investments. Participating institutions are limited to a 50% net worth investment cap, ALM First explained.