NCUA Q1 Economic Report: Idaho Success Overview
In NCUA’s recently released economic report, Idaho credit unions excelled in several categories. Read on for executives’ insight on their credit unions’ success.
In NCUA’s U.S. Map Review for the first quarter of 2017, Idaho credit unions showed their vibrant health.
Idaho’s successes included being ranked third in the country for loans-to-shares. Nationally, the median ratio of total loans outstanding to total shares and deposits was 62 percent. Idaho credit unions saw a remarkable 85 percent loans-to-shares ratio.
Idaho credit unions also excelled in the median growth rate in loans category. With a growth rate of 6.6 percent, the state’s credit unions surpassed the national rate of 4.4 percent.
St. Maries, Idaho-based St. Joe Valley experienced incredible success in this category. The credit union saw 57 percent loan growth in the year ending March 31, 2017, in part due to conventional mortgages. In a competitive area with five financial institutions available to about 3,000 residents, the credit union counts being small among its advantages.
“We get to know our members personally. We try to find a way to do the loan rather than turn them down,” said St. Joe Valley President and CEO Gloria Rauch. “Being in a small community, I can go look at property myself. We have wonderful, loyal members who are committed to paying their credit union loans back.”
Idaho United Credit Union also experienced exceptional results in the area of loan growth, with 47 percent growth year over year. The credit union’s strategy included adopting a new approach to dealer management. “We weren’t getting significant business from certain dealerships, and they wanted to be paid a large amount to send the loan our way. We simply quit working with dealerships that operated with that mindset and focused on our dealers that were interested in our success, too,” said Gary Skeen, President and CEO of Idaho United Credit Union.
The credit union also implemented different tactics to mitigate risk on auto loans. “On deals with questionable credit history, we require lower LTVs and GPS tracking/shut-off,” Skeen explained. “I’ve been surprised how many new, loyal members have come from this type of transaction. Those who have cleaned up their credit and have maintained a good history with us, we’ve rewarded with better rates on other transactions. After all, that is one of our core missions as credit unions.”
Stay tuned for the next article in this series highlighting the performance of Oregon, Idaho, and Washington credit unions in the NCUA report.