MCUL & Affiliates 2015 Executive Summit. Lending Panel. Richard Hamm, Moderator. Thursday, Sept. 17, :00 a.m. Sponsored by:

Transcription

1 MCUL & Affiliates 2015 Executive Summit Lending Panel Richard Hamm, Moderator Thursday, Sept. 17, :00 a.m. Sponsored by:

2 Agenda/Format View from the Top Remarks from Jennifer Watson Questions Consumer/Mortgage Lending Remarks from Eric Burgoon Questions Business Lending Remarks from Ken Michalak Questions Other Topics and Questions Note: Further lending discussion will be possible at afternoon sessions starting at 2:30 p.m. within your peer group sizes

3 View from the Top Jennifer Watson CEO Limestone Federal Credit Union Manistique

4 Limestone Federal Credit Union $45,000, $40,000, $35,000, $30,000, $25,000, $20,000, $15,000, $10,000, $5,000, Asset Loan & Deposit Growth $- 12/31/ /31/ /31/ /31/ /31/ /31/ /31/2014 Assets $22,640, $27,019, $29,364, $33,098, $37,078, $39,707, $42,488, Shares $19,325, $23,625, $25,831, $29,413, $33,089, $35,257, $37,609, Loans $19,566, $21,332, $23,102, $26,162, $31,539, $34,052, $37,095, Assets Shares Loans

5 Lending Spectrum MANAGING PEOPLE MANAGING GROWTH MEMBER RELATIONSHIP MANAGING RESULTS Hiring Engaged Team Confident/Educated Staff Strong Sales Culture Organizational Standards Internal Standards Progressive Products Staff Development Plans Technology Variable Compensation Utilizing Resources Deposits/Loans Simultaneous Growth Rates Measure Report Communicate Empowered Staff Accountability Develop/Manage Member Relationship Can we save them money? Can we educate them? Selling products based on need rather than product of the month Value added services versus traditional advertising Top of Mind/Referral Staff Motivation Member Use of Services Industry Comparisons Overall Financial Condition Goals Alter Course Action

6 View from the Top Questions?

7 Consumer/Mortgage Lending Eric Burgoon SVP of Mortgage Lending Lake Michigan Credit Union Grand Rapids

8 Consumer/Mortgage Lending Advantages credit unions have in residential mortgages Reputation, including member service We are the anti-big bank Lower rates and fees Portfolio (hold) vs. sell options

9 Consumer/Mortgage Lending Products LMCU has chosen Conforming and jumbo, but also: Construction and lot lending Doctor mortgage

10 Consumer/Mortgage Lending Sales Force: What experienced loan officers need in order to do purchase business Products and pricing Competitive compensation plan Find them! Don t forget e-mortgage opportunities with members

11 Consumer/Mortgage Lending Advanced Phases of Development Servicing Operational efficiencies Expanded investors Investors Aggregators: Chase, Wells Fargo Agencies: FNMA, FHLMC, FHLBI, GNMA Participations

12 Consumer/Mortgage Lending Questions?

13 Business Lending Ken Michalak AVP and Commercial Lending Manager Lake Trust Credit Union Brighton

14 Business Lending Why businesses choose a credit union Banks Have become fickle with helping businesses get access to funding Make unpredictable loan decisions based on industry, loan type and/or loan size Have more loan officer and management turnover Have more customer disruptions due to acquisitions/mergers Credit unions Offer a stable lending environment that banks previously offered Typically do not use automated credit scoring for small loan sizes, which can increase the number of approvals Make decisions locally

15 Business Lending Best practices Lake Trust utilizes Helped establish MBL CUSO in 2004 that provided access to loan opportunities and qualified lending personnel Hired seasoned commercial lending staff in 2011 Seasoned lenders that are tired of banking changes are prime targets for moving to Cus Developed relationships with real estate brokers, CPAs, attorneys and business leaders in markets We find a way to say yes We stress timely communication with borrowers We provide member-businesses with a full-time loan assistant and number

16 Business Lending Questions?

17 Other Topics and Questions Hurdles/Challenges Other Questions Share Best Practices

18 Thanks! We have enjoyed working with you this morning Remember, further lending discussion will be possible at afternoon sessions starting at 2:30 p.m. within your peer group sizes