ANAHEIM, Calif.–The best credit union lenders in the country were recognized here.
During the CUNA Lending Council’s annual meeting, the CUNA Mutual Excellence in Lending Awards were presented.
“The awards give us an opportunity recognize our peers who are doing awesome things with product development and using technology, but doing so while making loans safely,” said Mike London, chairman of the CUNA Lending Council.
The winning credit unions are:
- Consumer Lending Under $250 Million in Assets: Jefferson County Federal Credit Union, Louisville, Ky. In 2012, LTS of 33%. Four years later 43.57%, and then in 2017, after centralizing its lending process. The loan to share ratio at the $126.4 million JCFCU is now 57.26%. Loans are up 73%, and GAP sales up 150%.
- Consumer Lending Over $250 Million in Assets: Spire Credit Union, Falcon Heights, Minn. In 2013, total loan balances were not really growing. It refocused on lending metrics and technology, and also overhauled its indirect lending program with a preferred dealer program. BI and data analytics have changed the lending philosophy at SPIRE from seeking to be the lowest-cost lender and to instead focus on automation and provide an automated experience. SPIRE has gone from a 5% annual decrease in loan portfolio, to a 75% increase over two years. It credited using a “visual chart-based platform” as part of its data analytics solution, the credit union said, leading to seeing “new correlations we would not have previously thought of.”
- Member Business Lending, Under $1 Billion in Assets. Consumers Credit Union, Kalamazoo, Mich. Gary Ferguson. The CU experienced 46% loan growth in commercial loans in 2017 and is on pace for 42% growth in 2018. CCU made a strategic decision to grow its business lending, and its team of four is now 11. It has been promoting its services using digital marketing, including member testimonials, and has also used billboards and television ads. The CU’s target has been to focus on owner-occupied businesses, which CCU’s Gary Ferguson said “gives us the opportunity to develop a full relationship with them.”
- Member Business Lending, Over $1 Billion in Assets: Alliant Credit Union, Chicago. Using a variety of new analytics tools from Moody’s, the CUNA Lending Council said Alliant has been able to use that data and other macro-economic forecasts to build a balanced loan portfolio. It has also built a new website and online solution for just for commercial loans. Since implementing the strategies 18 months ago, it has originated $439 million in new business loans, with LTV of 59.5% and no charge-offs or delinquencies to date. Two years ago, a spokesperson said, it was focused on $1 million-$3 million loans mostly for commercial real estate. it has since changed its focus to go after larger transactions owned by seasoned portfolio owners with deep experience, often institutional in nature.
- Serving Members of Low to Modest Means, Under $250 Million. Calcoe FCU in Yakima, Wash. The $34-million CU had been seeing 1% loan growth an 0% member growth in 2012. As the result of changes, its loan growth has been 114% and it has doubled the number of members. The CU said it did not want to merge and chose to “reinvent” itself. With 50% Latino population in an agriculture county, and with a LICU charter in Yakima County, began offering risk-based pricing on auto loans. “Our members needed reliable cars to get to work. And we were tired of hearing from them saying they were getting ripped off by loan sharks at 20%,” said a spokesperson, noting it now offers loans to those same members at 12%-13% rates.
- Serving Members of Low to Modest Means, Over $250 Million in Assets: Frankenmuth Credit Union, Frankenmuth, Mich. In 2016-2018, FCU accumulated $2 million in awards from the CDFI fund it has used to create a mortgage product for low income and credit-challenged members. It created the “MIhome” product as part of long term strategy of penetrating the low-income market. The goal is to get 495 low-income families into a home. The Frankenmuth market was recently named “the most unaffordable place to rent in the country.” MIhome offers up to 110% LTV, and the CU waives the PMI requirement for some borrowers to increase affordability.
Individual Honors
- Rising Star Award: Jim Esner, GTE Financial, Tampa, Fla. Esner was credited with driving growth in indirect lending from $142 million to $205 million in loans, while decreasing charge-offs.
- The Phil Greer Lifetime Achievement Award: Keith Reynolds, CEFCU, Peoria, Ill. A 43-year veteran of CEFCU, Reynolds was recognized for his professionalism and for resolving numerous loan-related issues during his career. “Caring concerned colleagues should never be taken for granted but rather rejoiced in each day,” Reynolds told the meeting.