SAN DIEGO – Four credit unions have been recognized for winning lending programs.
Presented with Excellence in Lending Awards, which are sponsored by CUNA Mutual Group and the CUNA Lending Council were: Carter FCU, Shreveport, La., Consumer Lending, Less than $250M in Assets; Clearview FCU of Moon Township, Penn., Consumer Lending, More than $250M in Assets; Numerica Credit Union in Spokane Valley, Wash., Business Lending; and Highmark FCU, Rapid City, S.D., Business Lending.
The awards were presented here during the CUNA Lending Council annual meeting.
Here’s a look at why the four credit unions were chosen by CUNA Mutual and the CUNA Lending Council, according to a statement released by both organizations:
Carter FCU, ($230,000+ million in assets; 30,000+ members). Chartered in 1954 by Floyd Carter of International Paper Company, Carter significantly grew its more profitable direct lending program while maintaining a moderate indirect lending channel.
With the financial well-being of its members in mind, CFCU recently adopted a Salary Advance Loan program by piloting Filene Research Institute’s “Borrow and Save” program. This cheaper alternative to payday-lending products deposits 5% of each loan request into a savings account to help members break the payday lending cycle. In five months, more than 118 loans were booked for more than $53,000.
Clearview Federal Credit Union, ($900 million in assets; 86,000 members). A credit union with its roots in the airline industry, for years Clearview FCU had struggled to get its lending program off the ground. With the help of a lending consultant, Clearview changed its ways in flight in a way that celebrates successes; keeps employees informed, engaged, and empowered; and provides real solutions for its members. Members took a liking to revamped home equity products that are flexible and priced more competitively. Clearview also streamlined the home equity turnaround time from four-to-six weeks to 10-14 days. Those and other improvements have resulted in double-digit loan growth in 2013 and the trend continued in 2014 with loan balances growing 18.87% year over year.
Numerica Credit Union, ($1.3 billion+ in assets; 103,000+ members). Numerica CU wanted to better serve small businesses and knew doing so meant being more organic. So, it hired experienced commercial loan officers and credit personnel and purchased appropriate software to set for more home-grown business lending. The credit union began focusing on originating high-quality loans through its loan officers or from branch referrals, versus through brokers. In addition to tapping existing members, Numerica connected with the community through outreach and marketing efforts. Numerica now has the largest member business lending portfolio in its market. At year-end 2013, MBLs totaled $232 million, a 123% increase in four years.
Highmark FCU, ($95 million+ in assets; 9,500+ members). This low-income designated credit union has ambitious business lending goals and a solid plan in place to reach those goals. Highmark serves parts of South Dakota and Wyoming, expects a third of its total lending portfolio to be comprised of MBLs by 2018. That plan is expected to increase membership, diversify HFCU’s loan portfolio, aid ALM goals and help meet profitability targets. In addition to investing in employees and technology, HFCU is adding a personal touch to its focus on small businesses and ag producers. Staff will make “house calls” to bring business members’ banking needs to them so they can avoid time away from their businesses. In 2013, HFCU increased its MBL portfolio goal by 135 percent from 2012. Within the credit union’s regional peer group, competitors’ MBL portfolios increased 4.7 percent compared to Highmark’s 158 percent growth rate.
In the photo, from left to right: Wes Moreau III, CLO, Carter FCU, Shreveport, La.; Ronald Celaschi, SVP of Lending/Operations, Clearview FCU, Moon Township, Pa.; Ted Bangert, VP of Business Lending, Highmark FCU, Rapid City, S.D.; Greg Hansen, VP of Business Services, Numerica CU, Spokane Valley, Wash.
Back Row, left to right: Dan Murray, VP-Product Executive and Andrea Stritzke, Director of Lending Compliance, CUNA Mutual Group, Madison, Wis.; Joe Arnold, CEO, Carter FCU, Shreveport, La.; James Wood, VP of Lending, Clearview FCU, Moon Township, Pa.; Jason Osterhage, Chair, CUNA Lending Council and SVP of Lending, Alliant CU, Chicago, Ill.; Bob Stowell, Vice Chair, CUNA Lending Council and SVP/COO, US FCU, Burnsville, Minn.