Three steps for credit union growth
Balanced growth takes many internal and external business facets into consideration
Linda Walker recalls receiving an unexpected call from NCUA that resulted in an excellent growth opportunity.
The agency asked Walker, CEO of $65 million asset Riverdale Credit Union in Selma, Ala., if the credit union would be interested in acquiring the shares of a smaller credit union that had been conserved. Walker agreed, and the NCUA examiner delivered the failed credit union’s member cards, along with a check for its total deposits.
Walker and her staff created accounts for the new members and transitioned them into Riverdale, bringing immediate growth in both shares and loans.
While this situation isn’t common today, using mergers and acquisitions as a growth strategy may not be atypical as competition increases.
In a recent article about the importance of growth, I referred to the 2015 Fiserv Forum panel on growth that was presented with three credit union CEOs: Walker; Lily Newfarmer of $80 million asset Tarrant County’s Credit Union, Fort Worth, Texas; and Sue Commanda of $205 million asset Hudson River Community Credit Union in Corinth, N.Y.
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