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CUNA Mutual Group Recognizes Excellence in Lending Winners

Rick Uhlmann
608.231.8940
rick.uhlmann@cunamutual.com

Michelle Larson
608.231.8310
michelle.m.larson@cunamutual.com

NEW ORLEANS — Five credit unions, including a double winner, were recognized for their lending prowess Monday with CUNA Mutual Group’s Excellence in Lending Awards at the CUNA Lending Council’s 17^th annual conference.

Dan Murray, CUNA Mutual Group, vice president, presented the 12th annual awards to:

University of Kentucky FCU, Lexington, Ky.: Consumer Lending, Assets More Than $250 million;
Texell CU, Temple, Texas: Consumer Lending, Assets Less Than $250 million;
Charter Oak FCU, Groton, Conn.: Mortgage Lending, Assets More Than $250 million;
Latino Community CU, Durham, N.C.: Mortgage Lending, Assets Less Than $250 million;
Black Hills FCU, Rapid City, S.D.: Business Lending;
Latino Community CU, Durham, N.C.: Low to Modest Means;

“A record of nearly 50 credit unions were nominated for 12^th annual awards and they were quality applicants,” Murray said. “It’s a credit to the ingenuity and resiliency of our nominees to achieve this kind of success during times of high unemployment, a poor housing market and low consumer sentiment.”

CUNA Mutual Group, with support and expertise from the CUNA Lending Council, established the Excellence in Lending Awards in 2000 to recognize credit unions that have implemented outstanding lending programs while demonstrating sound financial performance. The annual awards provide an opportunity for credit unions to share best practices and ideas, build networks, and recognize and celebrate lending excellence.

CONSUMER – Assets More than $250 Million:

University of Kentucky FCU ($403 million in assets; 45,000 members) – This Lexington, Ky., credit union has grown its indirect business from 1,600 deals with $29 million in originations in 2009 to more than 2,600 deals with $51 million in originations in 2010. UK FCU understands its market and uses social media, including blogs, Facebook and YouTube to connect with it. As part of its rebranding as the value leader with flexible terms, low rates and expert service, UK FCU focused its lending awareness on indirect lending and home-equity products. It also streamlined its loan decisioning so that 46 percent of loans are system approved and don’t go to underwriters.

CONSUMER – Assets Less than $250 Million:

Texell CU ($145 million+ in assets; 26,000 members) – Under the leadership of CEO Tony Hale, this Temple, Texas, credit union transformed from an order-taker culture to a sales culture. Part of that transformation was lessening its dependence on indirect loans Prior to 2008, 50 percent of its portfolio was concentrated in indirect loans compared to less than 20 percent today. Existing members are now encouraged and rewarded for financing directly through the credit union. Texell grew its lending nearly 27 percent in 2009 and 35 percent in 2010. That resulted in the highest loan-to-share ratio in Texell’s history, higher average loan balances and net charge-offs below peer and industry averages.

MORTGAGE – Assets More than $250 Million:

Charter Oak FCU ($650 million+ in assets; 68,000+ members) – An economic downturn that severely hurt its vehicle loan business prompted this Groton, Conn., credit union to implement a diversification strategy. With its focus on mortgages, Charter Oak developed several innovative mortgage products, including Accelerator Mortgage, which is designed to appeal to members interested in paying down their mortgages. Proof of their lending excellence was in the results: The credit union became Eastern Connecticut’s No. 1 mortgage lender with more than 1,000 mortgages ($130 million) originated in 2010.

MORTGAGE – Assets Less than $250 million:

Latino Community CU ($102 million+ in assets; 50,000+ members) – Latino Community Credit Union of Durham, N.C., understands its core purpose and delivers affordable and accessible mortgage loans to its low-income Latino membership throughout the state of North Carolina. In 2010, LCCU experienced loan growth of approximately 20 percent, an overall loan yield of close to 7 percent, while limiting loan losses to less than 1 percent, despite many of its members having no credit history. LCCU attributes that low loss experience and 2 percent delinquency rate to its very effective financial education program.

BUSINESS:

Black Hills FCU ($880 million+ in assets; 51,000+ members) – This Rapid City, S.D., credit union took a very disciplined approach to blending business lending into its corporate culture as a core product offering. Through plenty of homework, a commitment of people and technology, and a solid marketing campaign, Black Hills FCU opened the eyes of business members to the credit union’s business loans and services alternatives. The business plan ensured that their team of lenders remained involved at all levels of business loan decisioning in order for them to act as a member’s advocate on a loan request.

LOW TO MODEST MEANS:

Latino Community CU ($102 million+ in assets; 50,000 members) – It’s rare for a credit union to win two awards in the same year, but judges were unanimous in bestowing the honor on LCCU. As it did as a mortgage winner, this credit union delivered the overall lending products and services to meet the membership needs of many previously unbanked Latinos in North Carolina. Its fully bilingual and bicultural staff delivers low-cost check cashing, money transfer services and low-interest credit builder loans. LCCU’s attributes its 2 percent delinquency rate to its award-winning financial education program, despite much of its membership having no credit history. The credit union’s outreach is aided by the many partnerships it has with businesses and organizations in the communities it serves.

Excellence in Lending judges for the 2011 awards included, Bill Vogeney, Ent FCU; Joel Luebkeman, CMG Mortgage Insurance; Jennifer Cowles, American Eagle FCU; Fawn Terwilliger, Service Credit Union; John Dangoia, CUNA Mutual; Jason Osterhage, Delta Community CU; Keith Reynolds, Citizens Equity First CU; Rich Fischer, CUNA Mutual; Chuck Anderson, Arizona State CU; Aaron Bresko, BECU; Tom Keepers, CUNA Mutual and Vicki Lovett, Suncoast Schools FCU.

The CUNA Lending Council is a community of credit union lending professionals dedicated to being the primary source of the best lending practices and educational opportunities in the industry.

CUNA Mutual Group insurance, retirement and investment products provide financial security and protection to credit unions and their members worldwide. With more than 75 years of true market commitment, CUNA Mutual’s vision is unwavering: To be a trusted business partner who delivers service excellence through customer-focused products and market-driven insight. More information on the company is available on the company’s Web site at www.cunamutual.com.

CUNA Mutual Group is the marketing name of CUNA Mutual Insurance Society, its affiliates and subsidiaries, including CUMIS Insurance Society, Inc. Product availability and features may vary by jurisdiction and are subject to actual policy language. Corporate headquarters are located in Madison, Wis.