SHREVEPORT, La.-An aggressive auto-loan recapture program and lower-balance mortgage refis are keys to making the bottom line at Shreveport FCU look even better this year.
At a time when it is difficult for credit unions to compete on new cars head-to-head with all the manufacturer incentives now in play, SFCU is choosing the approach many credit unions do-let the member take manufacturer financing, get the rebate, and then come to the credit union for a lower rate.
"It is very aggressive in our market for new car loans, but the recapture program is doing well," said CEO Helen Godfrey-Smith. "Normally the first four months of the year we lose loan volume from the previous year end. This year we are showing about an $800,000 net increase over year-end."
The mortgage loan portfolio has also increased by a net of $834,000 year over year, said Godfrey-Smith. The CEO explained the target has been lower-balance mortgage loans, under $75,000, from middle-income members. Overall, loans across the CU are up about 1.5% over year end. "Again, this is a time of year in which we would normally experience a 1% to 2% reduction in loan activity."
Godfrey-Smith added that the $90-million SFCU, too, is leaning more on social media, particularly Facebook, to keep the CU "top of mind" with a younger demographic.
