PITTSBURGH - Credit Union Journal asked CUs at the Pennsylvania CU Association’s annual meeting, “How is the economy affecting your members?”
Carol Ann Stevens, CEO of the $17-million Altoona Regional Health System FCU, Altoona, Penn.
“There has been downsizing at local businesses and people are getting laid off. It’s affecting new loans because members are out of work and unable to borrow. Families have less income, some are on unemployment, and it affects their ability to do business with the credit union. The economy has hit us hard here.
“We are trying to run special promotions and lower rates as best as we can. Keep things more competitive and affordable. We try to be proactive with rates and work with members as best as we can. If they are little behind in a payment, we work with them to get them past the crisis.
“We hope the measures we’re taking will help members weather the storm, and it’s an ongoing process. Every month the board and I look at where we are and if the actions we are taking are working, or if we have to look at other solutions. To be honest, I don’t know if anyone knows what’s really going to happen with the economy, because I don’t think anyone, only a short time ago, thought we’d be where we are today.”
Mike Pastirick, CEO of the $37-million United Community FCU, West Mifflin, Penn.
“Our original sponsor was the General Motors plant in West Mifflin, and they are closing. Obviously that’s affecting us. Not drastically, but it is affecting us.
“We anticipated what was coming at the plant and went community a year or so ago. We are opening our doors to more people and are working with small businesses now. We just partnered with six other credit unions to do a business development CUSO. We go in the back door, handling business services for a company, and pick up their employees as well.
“In addition to our business lending CUSO, we are partnering with Clearview Federal Credit Union, which is leading discussions around implementing an indirect lending CUSO. They are a large credit union and can help us and other participating credit unions with their lending expertise. We couldn’t afford to do indirect lending on our own.
“Even in the tight economy we find time to laugh–laugh at all of the financials that say, ‘We have free checking–again.’ We have never charged for checking and we maintain our fees to almost nothing, where we can. Our stance has always been to offer most everything free, and that’s helping us especially today. I also think the safety and soundness of credit unions is even more important now.”
Mark Brennan, CEO of the $600-million Clearview FCU in Moon Township, Penn.
“Our loan portfolio is fine. We did not get involved in subprime lending, and actually subprime has been an opportunity for us because a lot of members who had adjustable rates somewhere else are coming to us for the stability of fixed rates.
“We have an asset liability team that meets on a weekly basis, reviews all of the market rates, makes sure we are competitive, and we adjust our rates when necessary. Our rates are not always the very best, but we are usually in the top three in the market. I also think more people are turning to credit unions now for safety and soundness reasons.
“We used to be U.S. Airways Credit Union but we went community three years ago for the obvious reasons. When the airlines started pulling out of Pittsburgh it was time to make the business decision to go community, and it was a good decision because about 50% of our membership is still U.S. Airways related.
“Our credit union is one of seven owners in a business lending CUSO and we are generating business with it. We are also in discussions about an indirect lending CUSO. Let’s share the expenses and the revenue . . . these partnerships are working out well. They are something we haven’t done as much in western Pennsylvania as we should have, but now we have to.”
