FORT MILL, S.C. -
"Profitability and growth takes care of itself. It's very difficult to articulate," said Sharonview Federal Credit Union CEO John Carlson, when asked what the key to success has been for the credit union has that has consistently gotten top marks from Callahan & Associates. "This is not a quick fix. You're not going to start a special promotion and get to where we're at."
In Callahan & Associates rankings for the third quarter of 2006, Sharonview FCU came in third in Return to the Member (ROM), fourth in Return to Borrower (ROB) and 19th in Return to Saver (ROS). Carlson said the credit union had run no special promotions or ad campaigns, it's just a way of life for his staff and employees.
"We don't do anything different. It's something we track so we're aware of it," Carlson said. "It's not just one quarter."
Indeed, the credit union has consistently been in the top 20 on Callahan's Return of the Member Charts for "the last four or five years," he added.
From 2000 to 2006, Sharonview has had a compound growth rate of 15% and a loan-to-asset ratio of 90% for the last five years. At the heart of Sharonview FCU's success is its loan program and the employees who believe in their products and work to get members into loans versus "selling", he said.
"We are loans driven. We are very aggressive as loans are concerned," Carlson said. "We go looking for them."
Sharonview has $728 million in its loan portfolio with $421 million in home equity loans or mortgages.
Carlson said within the loan portfolio the real mover and shaker is the "Super Saver" loan program that holds $218 million in home loans for members who might not qualify for a regular loan.
The Super Saver loan rate is above local market rates but changes each week.
In fact, a loan rate isn't even posted on the Sharonview website page detailing the Super Saver program.
The loan can be used for first time buyers or refinancing and has a very low fee, around $500, and no points or extensive title work.
The loans can be opened at 10, 15, or 20 years with a fixed rate, with the 15-year option being most popular.
Qualifying ratios and credit qualifications are both flexible. When Sharonview members need a home, the Super Saver loan gets them into one.
"They pay an extra 25 basis points to avoid $4,000 in closing costs. Keep it simple and keep it focused," he said.
Carlson said the Super Saver program is a good example of what credit unions should be doing: creating and offering a product or service that the member needs and not what the credit union wants to sell.
The Super Saver loans are so successful that Carlson said it doesn't need a marketing campaign. When asked by the Credit Union Journal, Carlson said he couldn't provide ad samples, because there aren't any.
"We've never marketed it. We don't even have a brochure for it. Our people believe in it. To us, it's about engaging people. The members need it. We don't," he said.
Carlson flatly states that a satisfied member buys more products when they're happy with the value and experience of credit union staff running the loan programs.
To track that satisfaction, Sharonview works with Raddon Financial Group to sample member transactions on a daily basis.
The random samplings are compiled each month and sent to Carlson for review. If a Sharonview member is happy or not, they can always e-mail Carlson himself: his e-mail is listed on the credit union's website for all to see.
Carlson said creating a years-long culture of serving the needs the members actually want is very difficult and chiefly involves intangibles such vision, teamwork, daily effort with each member and employee faith in Sharonview's goals and loan programs.
The credit union also manages its expenses "very, very hard" to pay a little more on deposits and a little less on fees.
"They come back. But you'll never get a satisfied member until you get a satisfied employee," he said. "This isn't rocket science."
Carlson said to consistently place high member service and loyalty, there's no magic pill or complex formula.
Daily member sampling or reducing fees to place a young family into their dream home are actions any credit union can duplicate without large investments.
The same attitudes and efforts that win sports championships and forge good military units will also bring in the good numbers for any credit union, he said.
