ROME, N.Y.-As a recovering banker, Joseph Anderson knows that any financial institution's success is built on its lending program. Eleven years ago Anderson brought that awareness with him from the banking world to AmeriCU Credit Union and has used it to help drive the institution's growth and profitability.
"I knew people in the credit union business, but I never thought I would become part of the business," said Anderson, COO of AmeriCU and NAFCU's Professional of the Year in the category of credit unions with more than $751 million in assets. "After all these years, I wouldn't go back."
Anderson's role with a Baltimore bank was focused on lending, and prior to his departure he was managing director of consumer lending and president of the bank's real estate investment trust division. An impending acquisition of the bank and an uncertain future for the banker caused the Timonium, Md., native to accept the job as vice president of lending at the community chartered credit union in upstate New York, where he eventually became COO.
"AmeriCU had a low loan-to-share ratio when I got here, and the lending expertise I brought from the banking world helped to change that," said Anderson, who expanded the credit union's standard 80% loan-to-value real estate loan to 90% and 100%. "If we were going to make our process less onerous to the member, it meant making our products more competitive."
A Broadened Portfolio
Anderson also led the charge on creating an indirect lending program and changed the loan portfolio balance to reduce dependency on auto loans and increase the number of home equity loans, which is now the credit union's fastest growing lending product.
"Last year we had $500 million in loans," Anderson said. "That's pretty good for a credit unions with $1.1 billion in assets."
Anderson also instituted a loan program requiring the credit union to respond to members within 24 hours of application, a move designed to keep them from shopping other institutions. The community credit union, the result of a merger among several military credit unions, currently serves 121,000 members primarily located in eight counties in central and northern New York.
AmeriCU also has made technology a priority for reasons that are both economic as well as service-oriented. Transaction kiosks with around-the-clock service were installed in each of the credit union's branches four years ago, and they resulted in a sea change in the way that members conduct business.
"In the beginning 70% of all transactions took place in the teller line, with 30% done at the kiosks," said Anderson. "We now have completely flipped the equation and are moving on to our second generation of Diebold machines in July."
ROI, Despite Price Tag
Despite the $50,000-per-machine price tag, increased efficiencies and reduced costs for processing "low value" transaction like cashing checks have made the kiosks a valuable investment, Anderson said. Currently, a credit union iPhone app is in development to broaden technology's service reach even further.
Despite the strong emphasis on efficiency and profitability, AmeriCU stresses community and charitable involvement as part of its member service profile. Under Anderson's direction, the credit union works closely with and donates generously to numerous local and national charities. AmeriCU's employees donate hundreds of hours to various organizations, including the American Heart Association, the American Cancer Society, the Humane Society, the Muscular Dystrophy Association, the Carol M. Baldwin Breast Cancer Research Fund and others.
"Being involved in the community has made me a better person," said Anderson. "Before I was a hard-core banker and we called it CRA. Now it's really is about helping people."
