AUSTIN, Texas - While it is experiencing a sharp decline in auto loans, don’t associate national headlines about recession with the Texas economy, advises Greater Texas FCU CEO Tommy Seargeant.
“We’re statewide and we’re not seeing the slowdown that we’re reading about,” Seargeant said. “I think the economy in Texas is stable–not as robust as it has been, but not as bad as it’s been before, like during the ’80s real estate bust. I remember going through that.”
In Austin, headquarters for the $303-million Greater Texas, there haven’t been many problems with mortgage delinquencies, because the credit unions and banks have followed sound underwriting policies, Seargeant said.
“We don’t make subprime loans. We have $300 million in assets and about $16 million in mortgage loans with zero delinquency. We’ve sold off another $16 to $17 million that have only very little delinquency.” Still, Greater Texas FCU has seen a decline in auto lending. “Our car loans have slowed drastically,” Seargeant said. “I think people are just a little leery about their jobs, especially since Dell just had some layoffs. But I think it’s the national picture that might be scaring some people.”
It isn’t the Austin economy, says Seargeant, because the population is growing here. “The steady influx of new residents, high-tech jobs, the music and film industries...there’s just a good mix of businesses here complementing each other.” That local mix has led to steady growth for Greater Texas, which continues with its expansion plans. “We plan to add one to two branches each year,” Seargeant said. “We’re sound, well capitalized, and growing.”
