Special Series: Small CUs, Big Challenges
Small credit unions have always faced profitability and growth challenges, and today that's being exacerbated by assessments and new compliance requirements. This special CU Journal series looks at the strategies small credit unions are using to rise to the occasion.
WEST PALM BEACH, Fla.-Faced with shrinking ROA and growing compliance demands, credit unions and leagues are collaborating to devise solutions to keep small CUs in business.
RUSSELLVILLE, Ark.-Nancy Mattox believes unrelated business income is what will carry small credit unions through their current problems.
SAN BERNARDINO, Calif.-More credit unions have to share data processing systems. That's the opinion of Gregg Stockdale, CEO of the $35-million 1st Valley CU.
ONTARIO, Calif.-The California and Nevada CU League is making compliance the initial focus of its CU Roots CUSO.
HARRISBURG, Penn.-The Pennsylvania CU Association it making it more affordable for small credit unions to call in the league's "Compliance Cavalry."
ERIE, Penn.-Eleven small Pennsylvania CUs have formed a working group to help each other grow.
OLD FORGE, Penn.-A year ago Incol CU would never have considered taking out a full-page newspaper ad and partnering with a local car dealership on an auto loan promo.
Small credit unions have always faced profitability and growth challenges. But ongoing assessments and projected new compliance requirements have many sounding more pessimistic than in quite some time.
Gregg Stockdale, CEO of the $35-million 1st Valley CU, contends small credit unions are "alive and well."
The survival of many small credit unions may rest on examiners paying greater attention to supervisory letters and NCUA instituting a "moratorium" on forced mergers.
When asked for insights into its policies, procedures, and programs regarding small CUs, NCUA responded to Credit Union Journal by the book.