SAN ANTONIO -
Stephen Mackowitz, vice president commercial lending for Digital FCU, told attendees to CUNA's annual Lending Council conference that Citizens Bank and even giant Bank of America have sent MBL customers to his credit union.
Pete Van Graafeiland, vice president mortgage and business services for Coastal FCU, said his credit union has even financed new branches for three different banks. In addition, they have entertained bankers at the skybox they rent at the National Hockey League's Carolina Hurricanes games.
"It doesn't hurt to get banker buddies," said Craig Carpenter, senor vice president member business services at SELCO Community CU.
The credit union executives said their MBL programs have been high-performing. Coastal's Van Graafeiland said his credit union has $270 million worth of MBLs with no delinquencies and no charge-offs.
The $1.8-billion credit union makes both small member business loans, those up to $100,000, and large member business loans in the millions.
The participation market, where credit unions participate in loan pools created by other credit unions, is critical to Coastal because it allows the credit union to stay liquid while serving the market, he said.
But just as important is the fact it allows them to move some of the loans off their books to remain under the 12.25% (of assets) statutory limit for MBLs, Van Graafeiland added.
Even still, Coastal's business lending has grown so fast the credit union has had to ask NCUA several times for waivers from the limit.
The waivers have been fairly easy to obtain, said Van Graafeiland, of the three exceptions grants by the regulator.
The credit union executives insisted that credit union's need to reward their MBL officers because of the stiff competition. SELCO Community pays them up to 15% of their salaries as annual bonuses.
Coastal also pays up to 15% annual bonuses.
"We don't want to lose our personnel," Van Graafeiland said. "I don't want to be a training ground for someone to come and take our loan officers away."
