EL PASO, Tex. - The presence of the Fort Bliss Army base and the influx of thousands of new troops are spurring the local market here.
“Overall our economy is very good, and we are doing extremely well,” said Ken Walters, EVP at El Paso Employees FCU. “The first quarter of 2008 has been one of the better starts for our credit union in the last five years.”
Walters acknowledged that the local economy may be unique, with the Army base helping to sustain business. “The base is doing well,” Walters said. “Being a border town (with Mexico) we have a high number of Homeland Security employees and the border patrol. All of that is stimulating the economy.”’
Stable housing prices have also contributed.
“The housing market has not diminished,” Walters said. “Prices haven’t really fallen and we’re still building homes.”
With home prices remaining level, home equity lines are still attractive. The $240-million credit union has seen a significant uptick on HELOCs, which Walters suggests could be an indication that members are concerned about the economy.
“We’re seeing a lot more members take home equity lines and kind of consolidate their bills, which may be a sign that people are bracing for the worst,” Walters said.
Nevertheless, El Paso Employees FCU is being careful.
“We are making sure that our allowance for loan losses is adequately funded–probably overfunded,” Walters said. “We are being very cautious. We’ve also tightened our underwriting criteria. We’re not waiting for the rain to fall.”
Overall, Walters feels the CU is “fortunate. We are doing well from a lending and savings standpoint. The tough national economy hasn’t had an impact on us here, yet.”
