Bringing Business To You Company and Product Overview
Profile January 2016 CU Business Group is a CUSO focusing solely on business services. The following are highlights of our history and the services we bring to the credit union industry. Initially formed in August 2002 as a CUSO of Northwest Corporate now owned by seven corporate credit unions. CU Business Group now has a staff of 36 business services professionals. We now work with 511 credit unions in 46 states to help them deliver quality business services. We sign on an average of three new credit unions every month. Our credit union retention rate is over 98%. Our loan services include underwriting, loan documents, risk monitoring, consulting and training on business loans. We do not fund loans we only provide recommendations, advice and training. To date, credit unions have submitted over $6 billion in business loan packages for our review. CU Business Group s organic growth in loan volumes is 10%-20% annually. Independent loan reviews are an integral part of the services we provide. As credit unions grow their own in-house programs it is imperative that they review and maintain a sound business loan portfolio. Our staff has the knowledge and expertise to provide these independent reviews for quality control or problem situations. The CUBG Participation Network is a major strength, bringing together all our credit unions to share in buying and selling opportunities on larger loans. A large part of our consulting work centers in the business deposit area. Credit unions are typically not set up to handle business accounts and we spend considerable time helping them with account structure, pricing, operations and compliance. We also help credit unions put together a complete package of business services. This includes merchant bankcards, business remote deposit capture, ACH, and tax payments, marketing materials, and training on products and sales techniques. Education sessions are a major part of our role in the industry. Our education staff regularly lead sessions across the country and via webinar on all aspects of business services. CU Business Group obtains an SSAE16 Type II audit report annually which evaluates the controls of our systems and operating processes. 9600 NE Cascades Pkwy., Suite 250 Portland, OR 97220 Toll-free 866-484-2876 www.cubg.org
CU Business Group Products and Services Strategic Consulting Board and management education Strategic options for building your business services program including recruiting/interviewing Market demographics, program potential and breakeven analysis customized for your credit union Business Deposits Structure and pricing of core deposit accounts and package services Treasury management products including remote deposit capture, ACH origination and merchant services Operations, compliance, and systems guidance and expertise Marketing ideas, templates and resources; training in high-performance sales techniques Business Loan Consulting Policy development, forms, and procedures Processes, work flows, quality control steps Contract loan administration Education and training in operations, compliance and all aspects of business lending Business Loan Origination Commercial real estate, term, lines of credit, construction, agriculture, SBA Complete analysis and risk-rated credit presentation Spreads or a la carte underwriting Loan documentation compliant in all 50 states Alternative lending sources Loan and Participation Servicing Book your loan or participation on CUBG s system Includes funds management/distribution reporting and all detailed accounting Risk Monitoring Periodic financial review and analysis of business loans, including updated risk ratings Expertise in problem loans and workouts available to your credit union on demand Loan Participations Established network makes buying or selling easy Standardized processes, parameters and legal agreements CUBG will service the entire participation and serve as one point of contact for all participants Business Loan Portfolio Review and Quality Control Independent loan reviews for quality assurance and management comfort Education Complete webinar program covering a variety of important business services topics Regional in-person courses covering a variety of business lending and deposits topics Two national business services conferences held annually Customized training to fit your credit union s or association s need 9600 NE Cascades Pkwy., Suite 250 Portland, OR 97220 Toll-free 866-484-2876 www.cubg.org
Larry Middleman, President/CEO Core Staff Expertise 36 Years Experience Larry is the founder of CU Business Group and brings 36 years of banking expertise to the credit union industry. His background is based in community banking where he has extensive experience in leading business banking and cash management practices, including product development, pricing and sales. As a CPA and consultant, Larry has done extensive work with banks and credit unions throughout the United States to expand product lines, improve efficiency and increase profitability. His primary role at CU Business Group is consulting with credit unions on business services planning, program development, pricing, and education. Jim Clark, SVP/Chief Credit Officer 32 Years Experience Jim has 32 years of commercial lending and banking experience. As a veteran credit administrator, Jim has demonstrated success in all facets of commercial lending for both national and community financial institutions. Jim s experience in credit administration includes managing credit activities, ensuring compliance, establishing lending policies, maintaining high quality loan portfolios, and managing loan growth. From rural farmland to urban industrial areas, Jim has experience in originating, documenting, and servicing all types of business loans including commercial real estate, lines of credit, term loans, and government guaranteed loans. Jim oversees the credit policy and detailed guidelines for all aspects of business lending and directs CUBG s business lending team. Mike Mucilli, SVP/Senior Business Services Officer 38 Years Experience Mike has spent his entire career gaining expertise in banking, commercial lending and sales. He founded CUBG s east coast operations in 2003. Mike has underwritten all types of business loans. He also has extensive experience with SBA lending, has 12 years experience as a branch manager, and served as Director of Consumer and Home Equity Lending. He is a former instructor for the American Institute of Banking and has taught extensively throughout his banking and credit union career. Mike consults with credit unions in the eastern U.S. on all aspects of business services planning, program development, account pricing, and education. Mark Olague, VP/Senior Business Services Officer 39 Years Experience Mark has 39 years of commercial lending, banking, and credit union experience. Prior to joining CUBG Mark served as Business Relationship Manager for the largest credit union in Arizona. Mark is well-versed in all aspects of business lending including SBA lending, commercial real estate term loans, lines of credit, commercial and industrial loans, construction loans, and agricultural loans. Additionally, Mark has extensive experience in risk management and maximizing portfolio growth through the planning, development, and implementation of lending strategies. Mark consults with credit unions on portfolio reviews and all aspects of business services. Mike Smith, VP/Senior Business Services Officer 23 Years Experience Mike has over 23 years experience in commercial banking, business consulting and education. Most recently he served as a Commercial Loan Officer and Vice President of a Texas based community bank where he was responsible for business development and portfolio management with an emphasis on real estate and healthcare banking. Previously he was Director of the Small Business Development Center at Lone Star Community College System in Houston. Mike has significant experience in all facets of business banking including commercial real estate, agriculture, equipment and SBA lending, credit analysis, loan review and compliance. Mike consults with credit unions in the Midwest region of the U.S. on all aspects of member business services.
CU Business Group Services Members get the five course meal Affiliates go a la carte 9600 NE Cascades Pkwy., Suite 250 Portland, OR 97220 Toll-free 866-484-2876 www.cubg.org
How We Work With You Risk Monitoring is a key element of business lending This is a joint effort between the credit union and CU Business Group 9600 NE Cascades Pkwy., Suite 250 Portland, OR 97220 Toll-free 866-484-2876 www.cubg.org
Three-Year Business Lending Track Record Business Loan Delinquencies as a Percent of MBL Outstandings 2.82 MBL Delinquencies Dec. 31, 2013 - June 30, 2015 All Banks 2.58 Banks < $1B Assets 2.09 All Credit Unions CUBG 1.69 1.76 1.90 1.80 1.19 1.05 "CUBG credit unions" are those credit unions for which we regularly underwrite 0.81 0.72 0.42 *Delinquencies are defined as 30+ days past due December 31, 2013 December 31, 2014 June 30, 2015 Business Loan Charge-Offs as a Percent of MBL Outstandings All Banks 0.53 MBL Charge-Offs Dec. 31, 2013 - June 30, 2015 Banks < $1B Assets All Credit Unions 0.44 0.43 CUBG 0.35 0.28 0.28 0.22 0.21 0.18 *Charge-off figures are annualized for comparability 0.11 0.13 Source: FDIC call report and NCUA 5300 reports 0.03 December 31, 2013 December 31, 2014 June 30, 2015
Business Loan Participation Network Sellers Buyers Liquidity Caps Risk Tolerance CUBG s Participation Network More than 510 credit unions in 46 states Yield Diversification Get Started Benefits of the CU Business Group Participation Network Easy matching of buyers and sellers Liquidity when you need it Manage your caps total MBLs and loans-to-one borrower Increase asset yields CU Business Group facilitates the entire process Due diligence on the participating credit unions Underwriting and credit quality Standardized processes and documentation Pricing the loan and the participation Marketing the participation Quality control provided by CU Business Group Standardized loan documents and participation agreements Participation accounting standards Investor reporting and funds management Participation Network service standards
CUBG Relationship Programs Services and Benefits CUBG Service Specialty Affiliate Participation Member Member Ability to use loan underwriting, analysis, and consulting services Access to loan participation network for buying and selling Access to CUBG trusted partners Can attend CUBG education courses, webinars, national conferences Full service SBA program available Loan servicing system available Business loan forms, checklists, etc. Set-up on LaserPro loan documentation system CUBG participation policy template Priority for purchasing loan participations Complete access to CUBG staff expertise on participations Discounted fees on participation transaction services and education Free 100 level on-demand webinars Full CUBG MBL policy template with annual updates Discounted fees on loan transaction services and education Complete access to CUBG expertise on business loans and regulations Complete business deposit consulting, resources and support Members-Only access to CUBG resource library of forms and templates 9600 NE Cascades Parkway, Suite 250 Portland, OR 97220 Toll-free 866-484-2876 www.cubg.org
2016 Education Calendar Date Course Host/Location January 14 11:00 a.m. Pacific Streamlining & Managing the Commercial Lending Process Special Webinar hosted by ProfitStars January 28 11:00 a.m. Pacific Trends in Business Services Special Webinar March 8 9 Analyzing Business Loans LA Credit Union League Baton Rouge, LA March 24 11:00 a.m. Pacific Board & Business Loan Committee Training Special Webinar May 4 5 Analyzing Business Loans CU Business Group Portland, OR June 2 11:00 a.m. Pacific Key Updates on MBL Regulations Special Webinar August 8 10 CUBG National Business Services Conference Portland, OR September 19 21 CUBG National Business Services Conference Reston, VA October 20 Board and Business Loan Committee Training Special Webinar October 12 13 Putting the Pieces Together Understanding & Interpreting Business Financials CU Business Group Portland, OR 9600 NE Cascades Parkway, Suite 250 Portland, OR 97220 Toll-free 866-484-2876 www.cubg.org
Pricing CUBG Members All Other Credit Unions Streamlining & Managing the Commercial Lending Process Free Free Trends in Business Services $99 $129 Analyzing Business Loans $695 $795 Board & Business Loan Committee Training $199 $269 Key Updates on MBL Regulations $149 $199 CUBG National Business Services Conference $699 $799 Putting the Pieces Together Understanding & Interpreting Business Financials $695 $795 Streamlining & Managing the Commercial Lending Process: Learn new ways to strengthen your business relationships, grow your portfolio safely and confidently, and manage your business lending pipeline more effectively. Join us at 11 a.m. for a special webinar hosted by ProfitStars. Trends in Business Services: Tune in to this live hour-long webinar and hear CU Business Group s CEO Larry Middleman share valuable insights on top trends in business lending and deposit services. Analyzing Business Loans: This two-day in-depth course is designed to help credit union business services staff and management understand the critical elements of business lending. Learn about reading and interpreting tax returns, debt service coverage, appraisals, examiner hot buttons, and more. Board & Business Loan Committee Training: This two-hour live webinar covers the essential knowledge for key decision makers to successfully oversee your credit union s business lending program. We ll review MBL regulations and important regulatory issues as well as the importance of cash flow and how to calculate it and other key financial ratios. Learn to distinguish between the different types of business loans and understand the primary functions of a business loan committee. Key Updates on MBL Regulations: Join CUBG s business lending experts for an exclusive webinar on recent updates and best practices in business lending. CUBG National Business Services Conference: Join CUBG, credit union peers, and industry experts for the 2016 National Business Services Conference. Enjoy extensive networking opportunities, topic-focused breakout sessions, and key updates on credit union business services trends and best practices. Putting the Pieces Together Understanding & Interpreting Business Financials: Learn the key skills needed to effectively assess and understand a company s tax returns and financial statements. This two-day course will familiarize you with the basics of balance sheets and income statements, and will teach you to calculate cash flow ratios to determine how the business is really doing. 9600 NE Cascades Parkway, Suite 250 Portland, OR 97220 Toll-free 866-484-2876 www.cubg.org