OKLAHOMA CITY, Okla.-The old-fashioned bread and butter of credit union lending has proven to be plenty contemporary for Tinker FCU here, which experienced a whopping 17% increase in lending during 2009.
While loan growth of 17% would generally be considered strong in any year, it's particularly noteworthy given that CUNA is predicting an industry-wide national average of 5% loan growth for 2008.
"One thing we've done is stayed with what we know best-auto lending," said Donna Haines, senior vice president of lending at Tinker FCU. "We have a huge indirect program."
In other recent years, the credit union has experienced between 5% and 10% loan growth. Haines attributes 2008's much higher growth to what is going on in other areas. "I believe that national lenders have pulled out of Oklahoma," she said. "So the borrowers are looking at their local credit unions. We've seen a lot of new members through indirect."
The CU also listens to their members, and tries to cross-sell based on the products they need, "not just the product-of-the-month," Haines said.
The credit union has also had success with its direct-mail, pre-approved checks, which it sends out to its members three or four times per year for auto loans and unsecured loans.
One product that has not contributed to Tinker FCU's loan growth is mortgages. "We don't keep any long-term mortgages on our books," she explained.
Another product contributing to Tinker FCU's loan growth is student loans, Haines noted. "Our student loans have grown quite a bit this year," she said, explaining that other financial institutions have been pulling out of the student loan business, allowing more opportunity for Tinker FCU.
Haines also said that another reason the credit union may be experiencing an increase in lending compared to other credit unions throughout the country is its location-which may not be experiencing the economic turmoil seen other places.
"I don't think we're being as impacted as some of the coastal areas," she said. "We have been sheltered from the catastrophe."
For other credit unions hoping to experience similar loan growth, Haines advises them to "stick to their core business." "Don't do anything exotic," she said. "Just get out there and serve their core needs. Just the basics, the core-what we've always done in the credit union industry."
