HR looks different in 2024.

Workers today consider their whole selves and their entire career, including employee engagement, company culture, professional development, benefits, and hybrid or remote work options. As employee priorities have shifted, many organizations — including credit unions — have struggled to recruit and retain the best talent, leading them to acknowledge employee wellbeing as a business strategy, not just a perk.

Here, credit union leaders consider what these changes look like in practice and how their shops have evolved to meet today’s challenges.

A Modern Role In A Post-COVID World

Pat Schneider is the chief people officer at Chevron Federal Credit Union ($4.8B, Concord, CA). He joined his organization in 2020 with more than 20 years of HR experience and a passion for guiding teams, departments, and companies through turbulence and change.

How has your role evolved over the years? What factors have driven those changes?

Pat Schneider: My role has transformed dramatically from what was traditionally viewed as an administrative HR function into a strategic leadership position that directly influences organizational success. Under the vision of our CEO, I’ve become a critical member of the executive team, actively shaping business strategy and organizational culture.

Several factors have driven this evolution: the intensifying competition for talent across geographic boundaries as remote work becomes normalized; the rapid advancement of technology requiring new skills and digital competencies; and an increasingly complex legal landscape around employment, privacy, and workplace regulations.

The pandemic accelerated this transformation, pushing my team and I to the forefront of crisis management and workplace innovation. I’m now navigating multiple challenges simultaneously — managing hybrid workforces across different time zones, competing both with traditional banks and fintech companies for specialized talent, and adapting to constant technological disruptions that reshape how we work. Additionally, I’m focused on broader strategic initiatives like DEI programs, developing a benefits package to accommodate multiple states, mental health and wellbeing support, and leveraging workforce analytics to make data-driven decisions.

How do your responsibilities differ from traditional HR roles?

PS: Unlike traditional HR roles that primarily focus on administrative functions, my position operates at a far more strategic level. Our CEO recognized the need for this evolution and specifically recruited me to drive this transformation. During the past four years, I’ve strategically restructured our people team, establishing a robust foundation of people operations that handles essential HR functions and risk mitigation, which has positioned me to focus on forward-looking people strategy and organizational development.

My day-to-day responsibilities now include regularly collaborating with our executive team on business strategy, leading digital transformation initiatives affecting our workforce, and developing talent strategies that align with our credit union’s long-term objectives. I’m deeply involved in succession planning, organizational design, and building a culture of innovation. Although managing HR processes are still critical and foundational, I am actively shaping how our organization adapts to industry disruption, leveraging data analytics for workforce planning, and ensuring our talent strategies give us a competitive advantage in an increasingly complex financial services landscape.

Intentional About Diversity And Impact

BJ Jones is the chief diversity and impact officer at Sandia Laboratory Federal Credit Union ($4.1B, Albuquerque, NM). She has 25 years of experience as an HR executive and a long record of community involvement on various nonprofit boards.

How has your role evolved over the years? What factors have driven those changes?

BJ Jones: My role here from 2014 to 2022 included leading our HR and organizational development functions. Then, in October 2022, we adopted an intentional focus on diversity, designing my current role of chief diversity and impact officer while carving out the HR/OD leadership to what is now our chief people officer role.

In the past few years, I have created collaborations both internal and external to our credit union and developed a three-year roadmap focusing on diversity and impact as a lens for how we do business — not as a separate initiative. It aligns with our 2035 strategic plan.

Within that lens we have four focal areas: talent and culture (employees, potential employees, and leaders), members and potential members, communities we serve, and our vendor/supplier relationships. We are beginning to create and track applicable KPIs to understand our progress in each of these focal areas. It is exciting to see our partnerships evolve and how diversity and inclusion are weaving into every aspect of our business planning, strategic planning, and operations.

How do your responsibilities differ from traditional HR roles?

BJ: We intentionally created this role to live outside of the HR structure since its scope expands past an internal employee focus. Focusing on inclusion and growth is different from the traditional, and critical, equal employment or affirmative action compliance activities that live in the HR area.

It is a great opportunity to consciously focus on our cultural competency within each business unit within the credit union and to exhibit to our members, our communities, and our partners. We can focus on how our brand, our products and services, and our philanthropy and volunteerism intentionally reflect the rich diversity of the markets we serve and contribute to our strategic journey and growth.

Encouragement And Support

Darryl Shiroma is the vice president of talent development at HawaiiUSA Federal Credit Union ($2.5B, Honolulu, HI), where he has worked for more than 16 years. The credit union was named one of Hawaii Business Magazine’s Best Places to Work in 2024.

How has your role evolved over the years? What factors have driven those changes?

Darryl Shiroma: People need more support now than before, whether it’s a mentor or a coach, and COVID-19 disrupted that. It allowed us to work remotely. It allowed us to turn off our cameras. So, how do you connect people as a workforce?

I cannot do it by myself. I have to do it through our leadership, so some of the work is convincing them that this is what’s needed. This is what’s going to inspire them — not just the taskmaster but somebody who can be collegial, somebody who won’t always and only expect hustle culture from them. You need to help managers understand what’s important to today’s workforce.

How do your responsibilities differ from traditional HR roles?

DS: I never saw myself as an HR professional. Ask the average person what HR does, and they would say payroll, interviewing, and the rule enforcer. HR needs to be more strategic. There’s a blending of the lines between a traditional HR role and what might be something more developmental. You have to create culture. You have to reinforce culture through your policies, through your practices, through your onboarding.

It’s not just enough to be a great recruiter. You have to build that relationship, and you also have to be honest. You don’t want to fool people into what they’re getting themselves into. This means being honest and clear about who and what we are — and what we are not.

I also think traditional HR roles are more reactive where we now have to be more proactive — whether that’s through engagement surveys or we want to hear what’s working and not working. We also look at data like turnover and productivity. In the past, maybe HR never asked managers how they’re doing with their goals or key performance indicators.

Interviews have been edited and condensed.

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In February, Lloyd went to work as COVID recovery program manager at Kaua’i Government Employees FCU ($124.3M, Lihue, HI), where she helps guide her cooperative’s efforts to help its members handle the economic blowback of the pandemic.

Lloyd came to the role naturally. She was already involved in the community, and her family’s business teaching lei-making and building surfboards gave her empathy for what the pandemic was doing to the tourism-dependent local economy.

Here, Lloyd shares insight on how her new job helps her cooperative and the community recover.

When and why did Kaua’i Government Employees FCU create the role of COVID recovery program manager?

Ivory Lloyd: The credit union is a first responder in the community. We’re a CDFI, and when the pandemic hit, KGEFCU immediately began creating programs and support systems to help people weather the storm. That required a full-time position.

Did the credit union create it specifically for you?

IL: KGEFCU has numerous programs to help our community. I was on the rental relief team before I started this position in February. The position was needed, and I knew this was where I fit into the credit union world. I jumped at the opportunity.

What challenges does your role as COVID recovery program manager address?

IL: Our economy here on Kaua’i is almost entirely based on tourism, which came to an abrupt halt. Our businesses suffered tremendously and are still struggling. My role acts as a bridge between many of our small-business owners and the resources that can help them weather this storm, pivot, or create a new stream of income for the future.

What opportunities does your role address?

IL: A lot of us knew the tourism industry was not sustainable it’s extremely taxing on our local infrastructure, environment, and people. As businesses recover from 2020, there are so many opportunities to shift and diversify so we’re not so reliant on tourism. We can create a more sustainable economy for our people and livelihoods.

What makes you a great fit for this job?

IL: I have a background in working in non-profits and a master’s degree in sustainable development and corporate social responsibility. Working in the credit union world kind of combines both of these things. I also have my own small business that I started in 2017, so I understand the needs of our small business community and empathize with what they went through this past year. I grew up here on Kaua’i. I love this place. It’s important to me to create a better future here for everyone, my kids included.

Who do you report to? Who reports to you?

IL: I report to our CFO and work in a team with our business and community development officers.

What are your areas of responsibility?

IL: My roles and responsibilities vary from day to day but are essentially in the areas of developing, implementing, and managing products and programs to foster economic recovery. This includes content creation, research, growing relationships with key community partners, and working directly within our community to better understand needs and then meet them.

What’s your daily routine?

IL: Every day is different. We have two branches on the island and added a third pop-up branch in response to a major landslide that happened right after I started this position in March. The north end of the island is completely shut off to the rest of the island. There is a convoy that goes in and out three times a day, so I am in Hanalei two days of the week to assist our members on that side of the landslide.

For the most part, I am out and about, meeting with people half of the days and the other half working on forgiveness applications for Paycheck Protection Program loans. It really varies depending on the projects we’re working on. But one thing I will never give up is my end-of-the-day routine, which is to get outside with my family and watch the sunset at the beach.

Job titles say as much about the organization as they do the person. The “What’s In A Name” series on CreditUnions.com dives into notable, important, interesting, or just plain fun roles to find out what’s happening at the ground level and across the industry. Browse the whole series only on CreditUnions.com.

How do you track success in your job?

IL: I look at the number of people we touch in the community that either become members or gain recognition of who we are and the number of our own members who are getting the support they need during this pandemic. We’ve had more than 1,000 applicants to our rental relief program, and our KGEFCU team is constantly showing up in our community and getting the word out there.

How do you stay current with topics that fall under your role?

IL: I follow all the things that Filene does. I jump right in any event or webinar it’s hosting. I also attend SBA and USDA webinars. Really, I’m signed up for anything related to small business or food and agriculture. I’m currently reading The Unbanking of America. But most days, if I’m being honest, I’m reading Pete the Cat books and listening to Greeking Out with my kids on my downtime.

This interview has been edited and condensed.

The post What’s In A Name: COVID Recovery Program Manager appeared first on CreditUnions.com.

• Hundreds of virtual conversions are yielding best practices learned on the fly by credit unions across the country.

• Staff members who suddenly found themselves working from home had to make adjustments that required added levels of teamwork and support.

CU QUICK FACTS

Ko’olau FCU
Data as of 09.30.20

HQ: Kailua, HI
ASSETS: $89.8M
MEMBERS:6,601
BRANCHES:2
12-MO SHARE GROWTH:13.2%
12-MO LOAN GROWTH: -10.1%
ROA: 0.14%

Ko’olau Federal Credit Union ($89.8M, Kailua, HI) was days from its first live testing for its new core processing platform when the pandemic forced a sudden change in plans.

Instead of having Fiserv staff on hand for the crucial mock conversion and subsequent discovery process, credit union and supplier went online, communicating by phone and training by Webex as the cooperative completed its conversion to the Portico platform remotely.

Ko’olau FCU went live on Aug. 2. Up to a couple weeks before that, the credit union hoped it could host Fiserv’s people for the culmination of a process that began in 2018, when Ko’olau decided to convert from its Fiserv DataSafe platform.

We decided two weeks before we went live that we couldn’t have anyone physically here with us. We came up with a plan that made our staff comfortable.

‘We decided two weeks before we went live that we wouldn’t have anyone physically here with us, says Candi Yamamoto, the Aloha State cooperative’s senior vice president. ‘We came up with a plan that made our staff comfortablethey could still help our members while knowing someone was there virtually to hold their hands.

Pandemic Forces Trial By Fire

Credit unions have been running their core technology remotely for years, through service bureaus that are attracting a growing number of clients giving up in-house platforms in favor of the cloud. But conversions are a long, slow, detailed process thatstill rely heavily on in-person contact.

Until now.

Hundreds of core conversions have occurred among banks and credit unions alike since the spring, and the experience has made virtual conversion converts out of experienced hands on both sides of the transaction.

Doug Donofrio, SVP and General Manager, Credit Solutions at Fiserv

Yamamoto, for example, says this was her third core platform change in 22 years. And despite being remote, it went better than the previous ones. Digital communication channels saved the credit union money on travel and accommodation for the vendor’steam and adequately replaced the vendor being there in person when it came to training and support.

Doug Donofrio, Fiserv’s senior vice president and general manager for credit union solutions, says his company alone has completed nearly 100 virtual conversions, approximately half for credit unions.

‘Communication is key, Donofrio says. ‘It’s essential for building trust and an effective conversion team. Be overly available and engaged on virtual channels.

Donofrio also says remote work requires more prescriptive planning.

‘Map things out in advance and stick to the plan. We’re not sharing hallways, but we can share schedules and know what to expect.

Map things out in advance and stick to the plan, says Donofrio, who spent several years leading Portico installer teams before assuming his current post. ‘We’re not sharing hallways, but we can share schedules and know what toexpect.

Heavy Support

Shanon McLachlan, President, Symitar

Fiserv’s biggest competitor reports much the same experience. Symitar president Shanon McLachlan says his operation has executed on 105 ‘events’ since mid-March, including eight fully remote conversions and a variety of other changessuch as migrations from on-site to hosted as well as mergers.

Like Fiserv, Symitar created an always-on bridge line that clients can use for questions, and it relies on Zoom sessions and other video channels for training. It also recorded sessions for anytime viewing.

McLachlan says his company has put a lot of time and effort into making the process as connective as before, and although saving time on travel is nice, it’s still important to make sure clients know they are heavily supported.

‘We want it to be like we were in the conference room, physically there when they need us,the Symitar president says. ‘The pandemic has changed how we build relationships but not the importance of building them.

4 Tips For Virtual Conversion

Ernie Hanington, a vice president at Allegacy FCU, and Doug Donofrio, a senior vice president at Fiserv, offer best practices for virtual conversions.

• Prepare And Partner: Prepare everyone to expect bumps in the road, and stress the importance of partnership across the C-suite and suppliers.
• Communicate: Be overly available to one other, especially through virtual channels. Formally establish communication channelswhether bridge lines, webinars, or Zoom that can be accessed anytime and staffed duringcritical moments.
• Plan: Plans things out and stick to the plan. Work from a detailed playbook that records all activities and timing. People know what to expect that way.
• Then, Plan B: Have backup. The coronavirus is making it even more important to have fill-ins should someone be unavailable during key moments in the conversion process.

Solving Problems Together Without Being Together

CU QUICK FACTS

Allegacy FCU
Data as of 09.30.20

HQ: Winston-Salem, NC
ASSETS: $1.8B
MEMBERS: 162,301
BRANCHES:27
12-MO SHARE GROWTH:7.1%
12-MO LOAN GROWTH:15.4%
ROA:0.56%

Ernie Hanington, the vice president of emerging technologies at Allegacy Federal Credit Union ($1.8B, Winston-Salem, NC), helped lead his shop from its conversionto the Fiserv DNA platform after 10 years on FIS Miser.

Like Ko’olau, Allegacy was only two weeks from its mock core conversion weekend when the pandemic forced the North Carolina credit union to close its offices. With the exception of one in-person consultant, both the trial go-live in the spring andthe actual go-live on May 26 occurred virtually, Hanington says.

‘It’s very different,the VP says. ‘People accustomed to working on-site and having direct interaction had to be able to stay in contact, brainstorm, and problem-solve without being able to physically be in the same room and interact,

The newness of the remote-work environment added to the complexity.

Ernie Hanington, Vice President of Emerging Technologies, Allegacy Federal Credit Union

I think the biggest challenge was that this team, like so many people, were still adjusting to working remotely at home, Hanington says.

Real-time communications channels including multiple bridge lines based on disciplines and a WebEx internal/external tool for meetings proved key to the process working, but the conversion required a different mindset and way of interactingin a high-stakes environment, Hanington says.

Some Permanent Changes

According to McLachlan, Symitar has had the tools to pull off a virtual conversion. What’s new is how the core provider has used the tools to modify training and support.

We had to grow the ability to take a whole training lab to someone else,he says.

The Symitar president says the impact of experience gained and processes refined for doing virtual conversions are likely to linger once the pandemic is gone.

It’s going to be a hybrid as we go forward, McLachlan says. ‘Now that we have the option of going full-blown remote, things like recorded, self-serve training could be among the items that will be permanent features of core conversions.

Core Conversion? Callahan Has You Covered.

Callahan has resources to help you before, during, and after your core conversion. Learn how to get access to industry data analytics, data process market share information, and credit union-donated tactical conversion documents.

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The annual soiree is the movement’s largest gathering. Attendees hear from and meet with lawmakers, listen to keynote speakers, and check in with CUNA. Plus, there is what’s billed as one of the larger exhibition floors in the domestic financial services space.

There’s lots of opportunity to network and negotiate. Planning ahead is vital to ensuring there’s not a moment wasted during this visit to the nation’s capital.

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Know What

Dennis Tanimoto, President/CEO, Hawaii Credit Union League

As there is every two years, there’s a new Congress in session, with 10 new senators and 101 new representatives joining the 335 incumbents already on Capitol Hill. Not so new are the issues that will be front and center when credit unions visit their legislators and staff, traditionally on the convention’s final two days.

Our top three topics, in order, are preservation of the credit union tax exemption, regulatory relief, and merchant data security, says Dennis Tanimoto, president and CEO of the Hawaii Credit Union League.

His list matches that of CUNA’s chief advocacy officer, Ryan Donovan, who describes the GAC as four conferences in one.

Ryan Donovan, Chief Advocacy Officer, CUNA

You get great stage content, a robust education series, all the networking opportunities, and then the visits to the Hill and meetings with policy makers, Donovan says.

The veteran CUNA lobbyist says new House Financial Committee Services chair Maxine Waters (D-CA) and Senate Banking Committee chair Mike Crapo (R-ID) have indicated that data privacy will be a top priority for their panels.

You can’t have data privacy without data security, Donovan says.

To that end, CUNA will be renewing its case for imposing the same expectations and responsibilities on merchants as carried by card issuers, and Donovan advised hill hikers to come armed with specific instances of how breaches have affected their credit unions and their members.

Kevin Cole, Executive Vice President, Mid Oregon FCU

Other issues include, to name just a few, fintech regulation, marijuana banking, military lending, and leadership of the CFPB and NCUA.

There’s a lot to keep track of, but Tanimoto has advice for his 60-person delegation and for every other credit union leader hiking the hill.

Be knowledgeable about the issues, he says. And be ready to cite examples of how credit union members the elected officials’ constituents would be impacted by proposed legislation.

Donovan adds that credit union leaders should also point out how financial cooperatives stepped up to help federal employees during the recent record-long government shutdown.

It’s important that credit union advocates come to Capitol Hill armed with personal stories and anecdotes about their credit unions, their members, and their communities.

Indeed, the people are as important as the politics.

Bill Mellin, President/CEO, New York Credit Union Association

Certainly, studying the issues and learning about the members of Congress where they’ve historically stood on our priorities, bills they’ve supported, committees they serve on are ways to prepare for a productive meeting, says Bill Mellin, president and CEO of the New York Credit Union Association. But it’s just as important that credit union advocates come to Capitol Hill armed with personal stories and anecdotes about their credit unions, their members, and their communities.

To that end, Jeremy Empol, vice president of federal government affairs for the California and Nevada Credit Union Leagues, advises hill hikers to prepare a logo-branded one-pager that includes the credit union’s contact info, assets, field of membership, basics about the membership, stats on what kind of loans the credit unions is making and to whom, and delinquency rates.

It should also show a list of financial literacy programs and community programs, sponsorships, or grants through which your credit union makes a local positive impact, Empol says. It should have all the people helping people’ programs that are unique to your credit union.

Samantha Beeler, VP Advocacy, Northwest Credit Union Association

As for doing their homework, the leagues each have their own way of prepping their people. For example, the Northwest Credit Union Association puts together a GAC book for its delegation of more than 220 attendees.

It has everything from talking points to delegation bios to maps of DC, says vice president of advocacy Samantha Beeler. It’s usually a big hit.

Know Who

Credit union visitors also need to be aware of the priorities and positions of the lawmakers they visit, from freshmen to senior power brokers. A prime example: Whereas the California congressional delegation includes nine newcomers, Waters has been there for 30 years, and seniority matters.

Jeremy Empol, VP Federal Government Affairs, California and Nevada Credit Union Leagues

Chairwoman Waters has stated that addressing affordable housing issues will be a primary objective for her committee this session, says Empol at the CCUL. For credit unions, this means discussing access to the Government Sponsored Enterprises and other liquidity partners.

Indeed, the changing NCUA board two Trump nominations are now pending and Waters’ ascendancy raise questions that Kevin Cole, executive vice president of Mid Oregon Federal Credit Union ($312.7M, Bend, OR), expects to be bandied about at the GAC.

What will the environment look like with Maxine Waters as chair of House Financial Services? Cole asks. Have we lost our opportunity for additional forward momentum on regulatory relief? Should we focus on advocacy with the regulatory agencies instead of Congress?

As for the NCUA, Cole suspects the inspector general report about Chairman McWatters will be a topic of discussion.

Take time to personally connect with staff on the Hill. It’s so important to not underestimate the role of a staffer and how difficult their jobs can be.

The chairman of the Hawaii league board, meanwhile, has his eye on that state’s new members of the Senate Banking Committee and the aforementioned House panel.

We need to build a compelling case for meaningful legislation that will benefit credit union members and overcome partisan gridlock, says Andrew Rosen, president and CEO of Hawaii State Federal Credit Union ($1.6B, Honolulu, HI).

Andrew Rosen, President/CEO, Hawaii State FCU

Five time zones away, Brian McKay, executive vice president of SC Telco Federal Credit Union ($407.2M, Greenville, SC), shares a similar agenda.

He offers these three tips:

• Review the important issues at hand.
• Review elected officials’ stances on those issues.
• Visit as many delegate’s offices as you can.

South Carolina’s elected officials in Washington are mostly great supporters of the credit union movement, McKay adds.

And finally, don’t forget the powers behind the thrones.

My favorite tip is to meet as many people as possible and take time to personally connect with staff on the Hill, says Beeler at the NWCUA. Do not underestimate the role of a staffer and how difficult their jobs can be. I always encourage our young professionals and Crashers to take advantage of the time in DC and build relationship with Hill staff.

Brian McKay, Executive Vice President, SC Telco FCU

Back At The Convention Center

Although congressional visits are essential, there’s much more to the credit union movement’s largest confab.

Be sure to attend the large group sessions, says McKay at SC Telco. Being with thousands of credit union employees, volunteers, and supporters reminds you that our movement is something special.

Keynote speakers this year include former Secretary of State John Kerry, Tipping Point author Malcolm Gladwell, and congressional, NCUA, and CUNA leaders. But there’s more to the three days at the convention center than information and entertainment.

Go Pro With These GAC Tips

Veteran GAC attendees offer tips on how to make the GAC a successful trip to DC.

• Review the schedulein advance, and download the CUNA GAC app.
• Prioritize your time. Decide in advance who and what you need to see. Schedule meetings in advance when possible.
• Do your homework on the issues that matter. Prepare a couple of questions to ask lawmakers and their staff.
• Bring stories to share about credit unions helping people.
• Build your network. Make at least one new connection from outside your state.
• Wear comfortable shoes.

The networking and idea-sharing with industry professionals, volunteers, and advocates at the CUNA GAC are hard to replicate elsewhere, says Mellin at the NYCUA. Try making it a point to expand your network, to build one new connection with a peer from outside your state.

The exhibition floor is a great place to meet, greet, and eat while catching up on the latest from long-established and new entries in the marketplace. It offers more than one person can cover during its hours of operation open Sunday-Tuesday, closed during general sessions. But for this, too, McKay has advice that applies well to the whole GAC experience.

Visit the vendor area, but be strategic, the EVP says. Decide who you definitely want to see, and plan your visits to make sure you’re able to do that. Once those planned visits are done, wander around a little.

The post Start Today To Be Prepared At The GAC appeared first on CreditUnions.com.

What Is ROM?

ROM goes beyond traditional safety and soundness issues covered by CAMEL scoring to instead assess member value.

Learn morE ABOUT ROM

For credit unions, which typically offer better rates, fees and service than for-profit financial institutions, members recognize benefits in proportion to the extent of their financial transactions and general usage, says the Cornerstone Credit Union League on its website.

But how do credit unions measure the benefit of their membership?

Enter ROM, a comprehensive metric designed by Callahan & Associates that uses savings, lending, and product usage to quantify member value and assign a score to every credit union in the United States. Credit unions across the country use their ROM score to set member-facing goals and hold staff accountable to better serve members.

The interactive graphic below shows the top ROM leader in every state. Filter the view by state, ROM score, and credit union name. Click here to learn more about ROM calculation.

The post Which Credit Union In Every State Returns The Most Value To Members? appeared first on CreditUnions.com.

Curious about credit unions in your state? Callahan analytics software reveals how your credit union’s performance stacks up against state-wide peers. Contact us to learn more.

Strategy & Performance 2Q 2017

Credit unions are indeed having an outstanding 2017 right on the heels of a very strong 2016 and 2015. Eliminating barriers and connecting with members distinguishes credit unions from other financial institutions and makes the movementstronger than it’s ever been. Learn what the industry’s most successful credit unions are doing in this issue of Strategy & Performance.

The post State In The Spotlight: Hawaii appeared first on CreditUnions.com.

This does not have to be the rule. In fact, it may well be the exception but it happens more often than it should. There are plenty of very large credit unions that excel at member-first service. Two that come to mind areBECU($16.4B,Tukwila, WA) and State Employees’ Credit Union($35B, Raleigh, NC).

What made me come to this realization was an event in my life. My ARM is up for reset.I saw the rate for new loans on my credit union’s website was favorable compared to the re-set rate I had, so I called about modification options.Iexpected to pay a fee and modify my loan. I was told they would have to basically underwrite the whole loan again, including an appraisal and title insurance, the whole shebang.

This felt odd to me, as a consumer; they want me to pay for things I don’t need like title insurance and an appraisal. Plus the process of income verification and asset documentation is a pain.My first reaction was: if I have to go throughthis process I might as well look around at other lenders. The fees and process will be the same anywhere.

During the GAC I asked other credit unions how they handle it.During a conversation with Norman Okimoto, CEO of HawaiianTel Federal Credit Union($600.1M, Honolulu,HI) he proudly called his vice president of lending so he could tell me directly about their member-focused philosophy.That philosophy includes being willing to modify an existing loan without underwriting it from scratch. I can sharedozens of other examples of credit unions who shared similar practices.

That’s not all. My credit union also won’t modify an auto loan unless you first refinance it with a competing lender!Yes, I know modifying loans can reduce the profitability of a loan and extend duration on the balance sheet, but italso keeps real cash in members pockets.

In the grand scheme of things these examples are small. But to me they signal that the organization is focused on things that aren’t important to me as a member. It feels like they are more focused on growing and protecting their own balancesheet than their members’.

I met Rex Johnson, a legend to many, for the first time a few weeks ago.He told me that, in his opinion, some of the best-run credit unions in the country are run from the bottom up, not the top down.Those that listen to the member and puttheir interests first are often the ones that have the best sustainable organic growth possibilities.That made sense to me.

My hope is that as the credit unions that make up our movement continue to grow and thrive, they remember why we’re here. We’re here to serve members.The further our leaders get from touching and seeing individual members the harderthey have to work to ensure the culture of the organization clearly puts members first.

As Doug Fecher from Wright-Patt Credit Union ($3.5B, Beavercreek, OH) tells all new employees,If you don’t like helping people, you better find somewhere else towork.

More From GAC 2017

• GAC Week And A Movement’s Heart For Growth

• >How To Battle Hackers In 2017 And Beyond

• NCUA Chair Says Show Them The Money

• Federation Report Says CDFI Credit Unions Outperform

• How To Tell Your Story

• Granted, Small Credit Unions Can Succeed

The post Why Can’t Bigger Be Better? appeared first on CreditUnions.com.

Approximately 53.7% of state credit unions were posting double-digit deposit market share as of June 30, 2016 the most recent data set released by the FDIC for bank-to-credit union comparison. Additionally, 57.4% of states had at least $10 billion in total deposits on the books, which helps in sustaining the strong loan growth the industry has seen in recent years.

FDIC deposit data is a click away. Build displays, filter data, track performance, and more with Callahan’s Peer-to-Peer analytics. Request a demo today.

State leaders in deposit market share tended to have more branches in concentrated areas with smaller populations relative to other cooperatives. Additionally, the difference between their total number of branches and those of bank branches in the statetended to be smaller.

DEPOSIT MARKET SHARE BY STATE

FOR U.S. CREDIT UNIONS | DATA AS OF 06.30.16

Callahan & Associates | www.creditunions.com

Source: Peer-to-Peer Analytics by Callahan & Associates.

These sticky balances tend not to leave the credit union when rates rise. Therefore, core deposits will be an integral component of asset-liability management strategies in 2017 as credit unions prepare for interest rate hikes in the comingyear. The Federal Reserve raised its short-term rate in December and signaled it would do so again nextyear.

How Do You Compare?

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In 2003, credit unions held a similar proportion of their deposit portfolio in core deposits as the Fed prepared to move up rates which it did, 400 basis points between 2004 and 2006. The funding base credit unions had built helped them to postcompounded annual growth of 10.1% between 2003 and 2006. Past performance provides a good indication that credit unions are once again well positioned to continue their lending momentum in the coming years.

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Despite the slight increase in branch numbers, deposit market share remained unchanged for credit unions nationwide. As of June 30, 2015, the credit union deposit market share was 8.63%, just three basis points lower than June 2014. Among all states, Alaska posted the highest credit union deposit market share, 29.8%, while the District of Columbia and Idaho rounded out the top three with 24.6% and 24.0% market share, respectively.

LEADERS IN CREDIT UNION DEPOSIT MARKET SHARE
For all U.S. credit unions | Data as of 06.30.15
Callahan & Associates | www.creditunions.com

Source: Peer-to-Peer Analytics by Callahan & Associates

With a seven-percentage point increase, Arkansas boasted the largest year-over-year increase in the credit union deposit market share. North Dakota came in second with a 3.2 percentage point bump. Notably, 20 states posted a year-over-year increase in the credit union deposit market share, slightly up from the 19 reported in June 2014.

For banks, the two states with the highest deposit market share were South Dakota and Delaware, where 99.4% of the market went to for-profit institutions as of June 30, 2015.

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