ORLANDO, Fla.-Despite a housing market that has been depressed for three years and unemployment surging close to 12% across the Sunshine State, FAIRWINDS CU here had a surprisingly strong 2009.
The $1.6-billion institution posted a net operating income of $13.1 million - a $41 million improvement over 2008 when it reported a $28 million loss. CEO Larry Tobin credited efficiency and a thorough approach to collections for the good numbers.
"It's been all hands on deck and the crew members, that's what we call our employees, have been very involved in coming up with cost-savings measures," he said, noting that all staff members are involved in collections and member solutions. "Every department, every employee in some way is engaged in the process of collecting and reducing delinquency."
Collections officers do their usual job of making phone calls, but front-line staff also plays a major role by gently bringing up past-due payments and offering to help solve the problem when a member comes into the branch. With the right approach and attitude, members are "not put off in any way," Tobin said.
Employee cost-cutting suggestions helped FAIRWINDS save about $1 million last year, CFO Kathy Chonody told Credit Union Journal. The lower loan losses and cost cutting will prepare FAIRWINDS for 2010 - even with continuing troubles in the Florida market and another NCUSIF assessment. She projected a positive net of as much as $5 million for this year.
An attitude adjustment has also helped the credit union succeed in a tough environment.
"Last year we were starting to change the mindset that we were in a survival mode and started looking ahead," Tobin explained.
FAIRWINDS has already well-exceeded "aggressive" auto loan goals for the first month of the year and Tobin said that the rest of the numbers in the CU's loan portfolio look strong.
The credit union is also stepping into the business-lending gap as many competitors have pulled back from that marketplace, especially given the number of commercial loans that have gone sour due to excessive speculative building during the tail end of the boom. Tobin also noted that while its lending portfolio is performing well, the CU is "not overly focused" on getting members to borrow money. He believes that consistently telling members that they need to save more and spend less will make members feel ever more confident that FAIRWINDS is a solid financial institution and that loyalty will drive additional walletshare in both the near and long terms.
