OGDEN, Utah -
Goldenwest FCU, Ogden, Utah
In a year of flat growth for many credit unions, an institution showing measurable progress in asset and membership increases commands notice. Recent steps taken and progress made by Goldenwest Credit Union has helped the Ogden, Utah institution shine.
Numbers tell the story for Utah's third-largest credit union. The $550-million institution saw a 148% growth in assets over the past six years and the addition of new fields of membership, including underserved population segments in two of the four counties where the credit union has branches.
Over that same period, Goldenwest posted a capital growth of 89% and membership expansion of 55%, while its return on assets increased from 1.17% in 2000 to 1.75% in 2006.
Much of that progress was made in 2006. Goldenwest increased its assets by 23.84%, its deposits by 24.58 % and loans by 20.11% last year. Membership jumped 10.45% to the current level of 63,000, with about 3% of that growth coming from underserved areas, according to Shelley Clarke, Goldenwest's CEO. The initiative, begun by the credit union in 2003, supports Goldenwest's goals and objective from a variety of levels, she said.
"There's no question that serving the underserved is both a philosophical and economic initiative," said Clarke, who's been Goldenwest's top executive for seven years, a time span covering one of the credit union's most significant growth periods. "Those are two complementary factors in helping folks who otherwise might not have access to credit."
Ogden's Hispanic population has grown by 26% in recent years, many of whom fall in the underserved category. In addition to helping Goldenwest grow, serving the underserved broadens the credit union's reach into various population sectors and helps fulfill what Clarke considers to be a core value of the credit union movement. Despite some opinions to the contrary, serving the underserved doesn't pose that great an operational challenge, she said.
"We have to do our job qualifying and underwriting the loans, but they're not that different from the rest of our members," Clarke said. "At one time we served all 29 Utah counties. Given our background, we always served underserved groups; we just didn't call them that."
These days Goldenwest, which began in 1936 as Ogden Railway Employees Federal Depot Credit Union, is a multi-common bond credit union serving select employee groups in four counties in and around Ogden. Conversion from a state to federal charter in 2003 removed branching restrictions that formerly hamstrung Goldenwest's growth efforts, and the credit union now has 16 facilities throughout its service area, with more branches in the planning stages. Continued member support will keep those branches productive and profitable, she said.
"Utah is a very competitive environment, so we have to keep our pricing in place and continue to cultivate relationships," Clarke said. "Serving members is a daily commitment and we have to work hard to overcome obstacles to growth."
Increasing Community Service
To that end, Goldenwest also has increased its levels of community service, including a now- annual 5K run in March that this year attracted 2,000 participants and netted $45,000 that was distributed to area schools to help defray escalating operating expenses.
The credit union last year opened a branch in Ogden's Bonneville High School to support its commitment to financial literacy. Operations were so successful that several of the branch's student staff were hired as summer interns at GCI.
Such efforts are all part of Goldenwest growth strategy, one centering around what Clarke described as an authentic sales-driven environment that incents employees to provide superior service. Supporting external members, as well as those working within the credit union, is critical to the credit union's continued success.
"I have a sign outside my door that says: 'Our members are everything. Without them, nothing else matters.' I grade myself on how well I've supported that concept every single day," Clarke said. "There are no secrets to success in this business. It's about really good people wanting to do great things, with all of us working toward the same agenda in service to members."
