Suncoast Schools Federal Credit Union ( Tampa, FL) assets grew 12.0% to $5.9 billion mid-year, driven by strength in both the loan and share portfolios. According to second-quarter data from Callahan’s First Look program, Florida’s largest credit union realized share growth as money market and certificate balances picked up 12.7%. Loan growth of 10.3% was led by credit cards and mortgages.
Unique Value Drives Credit Card Growth
Suncoast Schools’ credit card loans grew an exceptional 37.6%, over the past 12 months. Two factors delivered the results: unique product benefits and a consistent marketing plan. Julie Renderos, SVP of Finance, comments that they offer a great product with low rates and almost no fees. For example, they have offered double reward points for gas purchases, free rewards on all platinum cards, and a 5.9% balance transfer promotion until balances are paid in full. Suncoast Schools’ marketing plan has also helped their loan growth by constantly promoting and enhancing the credit card benefits. Renderos explains, We use different marketing campaigns and never sit still.
Targeted Partnerships Lift Mortgage Growth
For Suncoast Schools, mortgage growth has taken off due to their structured programs and the strategic decision to keep more loans versus selling them. Renderos comments, We have the ability to take on a little more risk, and have leveraged withlonger term borrowings. Understanding their ties to the core membership, they offer 100% loan-to-value loans with a fixed rate in partnerships with school districts in their counties to aide in recruiting and retaining teachers.
Investing in Member Service and Value
Suncoast Schools continues to return value to members. They have opened four branches over the past 12 months, growing to 45 branches. In addition to service network investments, dividend payments increased a strong 39.6%. Over $100 million has been paiddirectly to members through the first six months of 2007. Given this level of value, it is not surprising that membership increased 6.1% to 433,510 members as of June 30, 2007. Despite a challenging financial services environment, Suncoast Schools’first half results demonstrate that exceptional value leads to exceptional results.
| Key Financials | ||
| June 30, 2007 | 12 mo. %chg | |
| Assets | $5,870,524,773 | 12.0% |
| Loans | $4,397,972,542 | 10.3% |
| Shares | $5,204,511,301 | 12.7% |
| Income | $187,869,603 | 18.0% |
| Members | 433,510 | 6.1% |
| Jun-06 | Jun-07 | |
| Dividends/Income | 45.4% | 53.7% |
| Loan/Assets | 76.0% | 74.9% |
| ROA | 1.1% | 0.8% |
| Net Worth/Assets | 8.6% | 8.5% |