By Ray Birch
MANKATO, Minn.—Getting along with bankers is a big reason why one small credit union here is consistently beating all other local financials in reputation and consumer approval.
Four out of the last five years Minnesota Valley FCU has been ranked No. 1 in a financial services poll conducted by Mankato Magazine and the Free Press.
“We were voted Best Bank or Credit Union for 2017, while Wells Fargo came in No. 2 and US Bank No. 3,” noted CEO Nick Meyer. “This is good news really for all credit unions, especially for smaller ones. We’re $150 million in assets today, and in that period we have grown by more than $60 million—which shows small credit unions can take on the big banks and grow.”
There are approximately 20 financial services providers in the Mankato area, which covers about 60,000 people, said Meyer.
“Four of the last five years we came in No. 1. And in one of those years we came in second. So we’re almost five for five,” said Meyer. “We’re happy and humbled each year. And I admit, when this started, we were a bit surprised.”
Playing Nice With Banks
A big part of the success, asserts Meyer, comes from the credit union playing nice with the big banks, which return the favor, he said.
“We intentionally don’t do much commercial or agricultural lending, because that is what many of the banks do, plus they have the expertise,” said Meyer. “That has helped create an environment in which we get along with the banks very well. We stay out of their sandbox and they stay out of ours.”
Meyer said that bankers here have never attacked the credit union’s tax-exempt status, and there has not been any negative press directed at either side.
“We don’t push their buttons and they don’t push ours,” said Meyer. “In fact, we all refer business to one another when we find we can’t meet an individual’s need, but know that another FI can. The banks have never said anything about the credit union not contributing to the community since we don’t pay taxes.”
Nick Meyer
But Minnesota Valley contributes a great deal to the local area, said Meyer, much more so that the other banks and even credit unions—there are two other CUs in town.
“We are proud to be a cooperative and we clearly practice the cooperative principles,” said Meyer. “We are very closely involved in the community, supporting local events, traditions and needs. We do believe that has driven a lot of business our way and created a great deal of loyalty.”
The credit union makes it very clear to its members and the community that it gives as much back to its account holders as possible. It keeps capital at 9.75%, which Meyer said is a level he feels is healthy for the credit union and allows it to give members a solid return. Meyer said that Minnesota Valley’s rates are at the top of the market on both deposits and loans, and it does that while operating on a somewhat tight 2.75% net interest margin.
60 Cents To Make A Buck
To be able to do that demands efficiency, said Meyer. He said it costs Minnesota Valley 60 cents to make a dollar. One of the reasons is limited branches—the credit union has two—and a staff of 32.
“Years ago, we made the decision to emphasize digital,” said Meyer, who said the credit union’s home banking and mobile platforms are heavily used.
Meyer said the credit union consistently tells the town it’s the best financial choice, and emphasized it does all that it can to let members know they have made the right decision.
“We go out of our way to help our members,” said Meyer. “For example, we don’t like hitting members with an NSF fee. Call it old-fashioned, but we make a lot of phone calls, send emails and text messages early each morning to all those who are on the NSF list. We try to track them down so they can send a deposit to us so we don’t have to charge them $21 and they won’t be embarrassed by a returned check.”
Meyer added that the Minnesota Valley is also one of strongest real estate lenders in the area, which he said not only adds to the bottom line but also generates a lot of referrals.
Getting along with bankers is something Meyer has always been good at—his wife, Vicky, works at a bank.
“Ever since she has been a kid, Vicky worked at a bank. She is a personal banker here at a branch of U.S. Bank. So I know how to get along with bankers,” kidded Meyer.