SAN LUIS OBISPO, Calif.-Help members when they need it, don't chase after money and love what you do-that's how one credit union is posting good numbers in a bad economy.
"We have consistently put up good numbers, and how you do that is by having a good staff. They understand our mission statement and all work very hard," said Bertha Foxford, CEO of the $475-million SESLOC FCU, which originally served the local school system but now serves the entire county. The $475-million CU took second place in Callahand & Associate's overall Return of the Member rankings for CUs with $20 to $500 million in assets.
Helping members has always been what credit unions are about, but it's become even more important in the current economy. That's why SESLOC created something its members have started calling the "Divine Intervention Committee."
Really called the Delinquent Intervention Committee, the aim is clear: "We help people who have fallen behind on their loans get a fresh start," Foxford explained. "Sometimes, when they cannot afford to live in their house any longer, we help them sell it without going into foreclosure."
"Friday [Feb. 6] was the first California furlough day-state employees are being furloughed twice a month so all of our state employees are hurting. It is a very difficult, depressed economy right now. But with that said, we have good loan demand - mostly through referrals."
Just as it would in any economy, SESLOC aims to have deep relationships with its members, as multiple services allow the CU to be "efficient." She noted it built $475 million in assets with just 34,000 members.
"We are a bit of an old-fashioned credit union and we like it," she continued. "We pay attention to the competition, but we mostly depend on word-of-mouth advertising and don't pay a lot for marketing. We are halfway between San Francisco and Los Angeles on California's Central Coast. It is God's country here, and there are not a lot of other credit unions around so we are not heavily infiltrated in the market."
Another important factor: recognizing that not all growth is good. "It is called [not-for-profit], but of course we have to make one if we want to stay in business," Foxford declared. "We allowed ourselves to shrink a little bit recently as we decided not to compete for deposit dollars. With all the problems going on, we want to be OK on the other side when things get better."
One of the biggest challenges, she said, is "hiring the employees I want when I want them." The credit union has five branches, and 91 full-time and 19 part-time employees. Most of the part-timers are students at the local polytechnic university, known as Cal Poly San Luis Obispo.
"This is a college town and we believe in learning, so we hire kids and work with their schedules. It is good for them and good for us," she said.
The goal is for staff to love coming to work, and in that, Foxford leads by example. "I love what I do," she offered. "I pinch myself every day when I get up and they pay me to do this. It will be 46 years this August. I might retire but no one wants me to. When I started SESLOC had $800,000 in assets, so I've seen lots of change."
