CHATSWORTH, Calif. Commercial real estate lending CUSO Business Partners, LLC reported it turned a profit in the first quarter, thanks to a reduction in overhead expenses.
Business Partners reported $122,500 in net income for Q1. A spokesman said BP expects Q2 net income to be "substantially stronger" as new business and originations are picking up speed month to month.
Last year, NCUA took control of Business Partners as the liquidating agent of Telesis Community Credit Union. The regulator later sold its controlling interest to three new principal owners, Farmers Insurance Group Federal Credit Union, Great Lakes Credit Union and Public Service Credit Union.
According to BP’s management team, including acting CEO Loren Houchen, the organization analyzed multiple areas to cut costs. “In many ways, Business Partners is redefining itself by getting back to basics,” Dave Maus, CEO of PSCU and chairman of the BP board, said in a released statement. “We have a very strong capital position so we can reinvest in the business by making improvements in technology, while at the same time making significant improvements to our balance sheet by reducing expenses. This allows us to focus more on expanding our participation levels and commercial real estate lending services for credit unions.”
Maus said additional moves included the formation of a credit review committee, consisting of the chief lending officers from the primary owner-credit unions. The committee’s main responsibility is to ensure that each loan originated through Business Partners meets particular lending criteria. “Every loan is reviewed to ensure risk tolerance levels comply with our guidelines, which provides our participants with an extra layer of support in their underwriting process,” Maus said.
Business Partners said it is the largest commercial real estate lending CUSO. It serves 40 states and more than 150 financial institutions nationwide.
