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May 12th, 2008
By Larry Sharp, CEO, Arrowhead Central Credit Union
Arrowhead Central Credit Union finished 2007 with strong financial results despite its geographic location in the “eye of the storm” – California’s housing bust. In preparation for a weakening economy, Arrowhead reduced operating expenses by 8.5% and balanced its loan portfolio. Arrowhead ended 2007 with a Return on Assets Ratio of 1.41% and a Capital Ratio of 9.64%. Arrowhead actively sold residential real estate loans into the secondary market, and spread portfolio growth among home equity, auto, recreational vehicle, and member business loans.
In 2008, Arrowhead sees opportunities to help members and to grow the Credit Union. Recent interest rate cuts by the Federal Reserve Bank will provide an opportunity for many members to refinance mortgages and reduce debt costs. Also, legislation to increase the maximum lending limits on mortgage loans will give members new sources of lower cost financing.
Continue Reading Cutting Costs and Reaping Opportunities »
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May 5th, 2008
By Bill Connors, CEO, Purdue Employees FCU
We are in the low portion of a normal cycle. Previous good planning should carry you through, but some points to remember: Don’t panic; keep diversified; emphasize service over yield; stick to your mission; and maintain strong contact with members
The media has its horror stories and some credit unions made some very bad mistakes, but my 35-plus years of experience tells me: Don’t panic; this is part of a normal cycle. Frankly, I didn’t think some parts of it would be as bad as they have become but really what we are seeing is a predictable long-term ebb and flow. This isn’t the first time housing prices have dropped and it won’t be the last. We are going to get through it. This is what capital is for. Stick to your mission of creating member value and you should come through fine. Remember that there are always going to be good years and bad years – weather the storm. You don’t want to knee-jerk a solid strategy in the low point of a normal business cycle.
Below are a few points about managing through the cycle.
Continue Reading Don’t Panic; Stick to Your Mission »
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April 28th, 2008
By Bridget Looby
In the Saginaw area, Catholic Federal displays a deep commitment to the communities and the Catholic flock.
Catholic FCU began in 1956 in the rectory of St. Mary’s Cathedral in Saginaw and then grew through new members and mergers. It expanded to encompass the 11 Michigan counties composing the Diocese of Saginaw. It can accept members of Catholic parishes in the Diocese of Saginaw, employees of the Diocese of Saginaw (or Catholic parishes) and employees of the Catholic schools who are either Catholic or non-Catholic, as well as relatives of members regardless of where they live or what their religion. The credit union serves 23,000 members and has over $210 million in assets.
You are pretty closely tied to the Diocese of Saginaw?
BL: Yes, our geographic area is the same as theirs. A few years ago, the credit union noted that other credit unions were converting to community charters so Catholic FCU wondered if it should convert as well. But during a planning session our Board and management decided to stay true to the credit union’s roots and stay primarily Catholic. One idea generated from not joining the mass exodus of local credit unions to community charters was to hire a Vice President of Business Development. Needless to say, I am that end result. I see a large part of my job as getting out into the diocese office, parishes, schools and their functions and telling people about our credit union.
Continue Reading Working Closely With the Diocese »
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April 21st, 2008
By Scott Vandeventer, COO/EVP, Evangelical Christian Credit Union
Less than 20 years ago ECCU had $40 million in assets. It now has over $1 billion in core assets and $3 billion in assets under management owing to a participation network. Its employees are passionate about helping their credit union’s member ministries.
Explain your credit union.
SV: We exist to make evangelical Christian ministries more effective. Like any financial institution, we provide loans and banking services, but we are not a typical credit union. Instead of serving consumers, our primary market is ministry organizations, specifically churches, Christian schools, colleges, and other evangelical ministries. World Vision and Campus Crusade for Christ are two examples. Even with all this emphasis on serving non-profits, we do serve individuals. Essentially, so we can focus on doing the best for ministries, we limit our services to individuals to just deposits, with the one major exception. Because we serve Christian workers doing relief, linguistics and other kinds of work around the world, we are thrilled to provide this specific member segment with all the banking services the average credit union provides. It’s really another way of serving ministries—the organizations that send them overseas like having a banking partner that will drop everything to meet the needs of their expatriates—today these folks are in more than 100 countries.
Continue Reading Finding Success at “Ministry Banking” »
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April 14th, 2008
By Kent Hartzler, CEO Mennonite Financial FCU
Mennonite Financial FCU uses both credit union and Mennonite means of networking to grow an institution based on long-established practices of mutual aid.
Mennonite Financial traces its roots to 1955, when it began under sponsorship by the Mennonite Publishing House of Scottdale, Pa. It expanded its FOM to Mennonites in Pennsylvania, then merged with other Mennonite credit unions in Ohio and Illinois. Mennonite Financial is now a 10,000-member; $82-million credit union operating out of Lancaster, Pa. Kent Hartzler has worked at Mennonite Financial for 10 years and been its CEO for a little more than a year.
Explain your FOM.
KH: Mennonite Financial is a faith-based credit union and also something of a contradiction. We serve a niche market that is located across all 50 states, with our charter being single common bond by association – we have no geographic boundary but serve any person in the Anabaptist community. This community is made up of Mennonites, Amish, Brethren in Christ, and related Anabaptist groups.
Continue Reading Building on a Strong Tradition »
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