MEMPHIS — The last few years have been rough for Agility Financial Credit Union.
In 2011, the $10 million-asset institution ended the year with a loss of $48,000, but by 2012 it had posted its first five-figure profit of $12,000 since 2006.
The Tennessee credit union's membership also grew from 1,200 members in 2011 to 1,413 as of January 2014.
Kay Mims, a 30-year veteran of the credit union industry took over as CEO in 2011 and set about making changes, some of which are still in the works.
"We ended 2013 with earnings of $815.87 because we had to charge off some loan accounts and therefore had to replenish our loan loss accounts," Mims said. "But we're still in the black."
What has brought the state-chartered credit union — founded in 1933 as the Appeal Papers Credit Union to serve newspaper employees — back from the brink, was Mims' idea to petition the state to expand its membership criteria to just about anyone inside the I-240 loop, which is an underserved area in Memphis.
"We weren't loaning money and the board had set their sights on building a new building for us," said Mims. "We rent 1,000 square feet and pay $1,250 a month rent and they thought that building a new office and spending half a million dollars would turn us around. It just didn't make sense to me and so I set out to convince them to try different ideas."
Mims met with a group of Memphis area credit union CEOs who helped her create a new business plan and she sold the idea to her board to target C&D loans.
"I thought these people need a second and yes sometimes a third chance," she said. "As long as there are no bankruptcies and the member has a job we do our best to work with them."
Mims and her staff of two full-time employees and two part-timers papered bus stops with ads offering loans. On more than one occasion she has escorted a member to a title loan office to pay off the high-interest debt so that the member couldn't be cajoled into taking out another loan.
"Those loans are like a deal with the devil," said the effervescent CEO. "I get more joy out of helping someone get out of that type of debt than almost anything else."
Mims offered a credit rebuilder program, an auto loan recapture program and a credit card transfer program to her members.
Another way the small credit union is competing is by embracing technology and mentoring younger employees."
"We offer mobile apps, internet banking and shared branching," she said. "I don't jump into things, I run everything by my group of CEOs before I present it to the board so we are sure of the technology."
So far, the board has been caught up in Mims' enthusiasm and success.
"Oh my gosh, we're just thrilled with what's happening," said board member Donna Calvi. "When she told us her fears about the new building we decided to change direction. She's found so many ways to reach people and word is getting out. People are paying their loans and they just love us."
Member Raymond Rico, who owns a graphics design company, has found that Mims is not only a financial advisor, but she has mentored him on growing his business.
"Kay and everyone at the credit union have helped me in some way to keep my business running," Rico said. "They have been a big part of my business success."
Mims knows that the motto of "people helping people" has become overused in the industry, but she's not shying away from it.
"Look, a lot of credit unions have turned into banks and they turn the people who we used to serve away with hardly a thought," she said. " Stuff happens to people and we are doing our best to give them a chance. We're not supposed to be like B of A or Chase. We're a credit union and we're not about to forget who we are and who we serve."
