2025 was a whirlwind year, but from a balance sheet perspective, it could’ve been a whole lot worse.

That’s the consensus from a variety of credit union leaders who braved a year of economic anxiety and come out intact on the other side. The task ahead? Maintain that momentum as they head into another year of uncertainty.

“I feel like there’s more certainty this year compared to [at the end of 2024],” says Seth Rudd, chief financial officer at Leaders Credit Union ($1.3B, Jackson, TN). “Saying that, the way we approach every year, regardless of what’s going on, is we’re going to reach our goals. We take economic indicators into account, but for the most part we know what we need to accomplish next year.”

Lending Landscape

Leaders isn’t expecting any major balance sheet changes in the year ahead. Rudd says he believes it’s unlikely mortgage business will pick up significantly, but he expects another strong year. He also expects auto lending rates to remain steady. Although he bases his prognostication on rate forecasts for the Fed, local forecasting also plays a major role.

“We mostly pay attention to our local market and what we’re seeing,” he says. “We’re not seeing bankruptcies increase significantly. It’s in line with where we’ve been the past 12 to 24 months.”

Rudd says Leaders intends to stay “laser-focused” on its current product mix, blending 65% auto lending with 25% real estate and consumer lending rounding out the remainder.

“We’re committed to our model,” the CFO says. “We don’t expect a change.”

EFCU Financial ($1.2B, Baton Rouge, LA) is taking a similarly optimistic approach, understanding that it could need to pivot quickly if things go south.

“We’re positioned to handle any economic uncertainty within reason,” says Tom Kuslikis, president and CEO. “If there’s something catastrophic, we’d feel pain because of that. Now that we’re going into a declining rate environment, we’ll be keeping a close eye on our expenses and managing appropriately.”

More than 40% of EFCU’s loan portfolio is auto loans, which Kuslikis says still has room to reprice. Margins have increased a lot and financials are strong, and with a lower rate environment expected in 2026, it’s likely the credit union will begin to see some margin compression, he says.

If rates go down as expected, notes William Hunt, director of industry analytics at Callahan & Associates, it could spark mortgage activity as purchase activity picks up from consumers looking for cheaper housing options.

At Leaders, third quarter credit card growth stood at 11.49%, about half of where it was three years ago, and Rudd says delinquencies and charge-offs are picking up in lower credit tiers.

That’s in line with the K-shaped recovery many Americans have been feeling but also reflects a resilient consumer, Hunt says.

“People are still spending,” the Callahan analyst adds. “Unemployment hasn’t shot up as a whole, so most industries aren’t doing mass layoffs, even if there are some struggles. This is definitely generalized — there are pockets that are feeling that.”

Combining Forces

Ent Credit Union ($9.7B. Colorado Springs, CO) has purposefully controlled growth the past few years to stay under $10 billion in assets and avoid the additional costs and regulatory issues that come with crossing that threshold. Its merger with Wings Financial Credit Union ($9.4B, Apple Valley, MN) will send it well past that line.

“We’ve not been able to flex from a growth and balance sheet-management perspective,” says Dan Leclerc, chief financial officer at Ent. “We’re going to be in good shape with these two credit unions coming together.”

That “flex” includes a more strategic approach to deposit acquisition while getting more aggressive around loan origination. Ent has historically focused on mortgages and consumer lending, whereas Wings has excelled at commercial deals — a market that grew by more than 35% across the industry between the third quarters of 2024 and 2025, according to analysis from Callahan & Associates. That combination, Leclerc says, sets the stage for a big year.

His forecast for 2026 includes 5% deposit growth and 7% loan growth. The former will come from marketing deposits more aggressively and entering new markets in both Colorado and Minnesota.

“We’re opening six to eight new branches next year, front-loaded to the beginning of the year,” Leclerc says. “That always comes with promotional marketing, and we always get a bit of a [deposit] bump from new branches.”

Headcounts, Deposit Management, And More

Across the industry, delinquency rates have followed seasonal swings but are largely improved form one year ago. Leaders’ Rudd says he expects charge-offs to rise slightly in 2026 but doesn’t expect significant changes.

Conversely, EFCU anticipates setting aside less for credit losses in 2026, thanks in part to a well-insulated market that continues to produce strong job growth — Baton Rouge is home to a robust oil and natural gas sector.

Kuslikis adds that the need for investments — particularly those related to technology — isn’t going to slow down, but one area where the credit union has a bit more control is staffing. EFCU’s total headcount has gone up 37% in the past five years to more than 140 employees. The credit union has no plans to reduce that, but it is slowing the velocity at which it’s adding team members, which Kuslikis says will help with managing rising salary and benefits costs.

The CEO also expects the deposit mix at EFCU to shift further away from high-rate long-term CDs to lower non-maturity shares. That should help keep margins stable in an uncertain economy as the credit union works to manage expenses and cost of funds.

Post-merger, Ent plans to continue its strategy of being “in the ballpark” for CD rates, since that has proven to be a stable funding source, Leclerc says. Although money market accounts might not grow, Leclerc expects to see that funding stick around, in part because Ent largely hasn’t repriced those accounts. And there’s always the possibility there could be some attrition from money markets to CDs.

Flexibility Is Key

So did Americans dodge an economic bullet in 2025, or will the other shoe drop?

“I’d be lying if I said I knew the answer,” says Callahan’s Hunt. But he does concede that, for now, there are no alarm bells going off.

“The optimistic perspective is that the resiliency of the past year has put credit unions in a pretty strong position from a capital and earnings standpoint to give themselves a rainy day fund,” the analyst adds. “There’s some cushion there to help if things get worse or to invest in growth if things turn around. They have flexibility for whichever way it goes.”

Leaders’ Rudd offered a different mantra: “Have your plan, stick to your plan, and if the world changes significantly, change your plan.”

Take A Closer Look. Learn what performance trends are pushing the industry forward and see where credit unions stand heading into 2026. Check out Callahan & Associates’ Trendwatch webinar on-demand for insights and expert analysis. Watch today.

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When hurricanes rip through the Gulf, they leave behind disrupted lives and disconnected communities. In those moments, access matters as much as empathy. When disaster strikes, The New Orleans Firemen’s Federal Credit Union  ($275.0M, Metarie, LA) is ready to roll with a mobile branch that brings back banking to the front line of recovery.

The Problem

A dozen hurricanes have impacted Louisiana or made landfall there since the year 2000, according to NOAA data. FEMA’s National Risk Index classifies New Orleans and its environs as being at high risk for hurricanes and with high levels of social vulnerability, although the area also rates highly for resilience.

“As we observe the 20th anniversary of Hurricane Katrina, it’s not if it’s going to happen again, it’s when,” says James Hunter, the cooperative’s chief advocacy and culture officer. “When disaster hits, things shut down. People don’t have access to energy, to gas, to cash —  anything you take for granted, we don’t have anymore.”

As an institution serving low-income, underbanked, and overlooked communities, the credit union wanted a way to ensure it was accessible in the worst of circumstances.

The Solution

With storms an ever-present threat, the credit union used a CDFI grant to shore up its capital position, in turn creating the flexibility needed to free up approximately $170,000 for a mobile branch, says President & CEO Judy Delucca.

The result is a full-scale branch on wheels. Just one foot shy of a commercial truck, it includes a computer and ATM access, cash on hand, a generator, and more. It’s a way to serve communities that don’t have access to banking services due to storm damage or other factors.

“We’re trying to fill a void,” Hunter says. “We’d love to be able to mobilize anytime to reach communities. Cash is king in these times. If you don’t have cash, you don’t have anything.”

What’s Next

New Orleans Firemen’s isn’t waiting for disaster to strike; it’s got plans to fill accessibility gaps in other ways.

“This is probably the most downtime we’ve had for disasters in a long time,” Hunter says. “We haven’t had a chance to show it in its full form, but we’re looking at different ways to use it.”

For example, the credit union’s community advisory team has pinpointed accessibility as a major issue in the region, particularly in pockets of Louisiana and Mississippi where many people lack access to reliable vehicles or live in banking deserts. Hunter says the credit union is working to schedule times to take the mobile unit into those spaces.

Also on the table are potential partnerships with local farmers to provide a fresh-food initiative for community members who live in food deserts. New Orleans Firemen’s also is working with Feed The Second Line, which has hubs ready for when disaster strikes. The credit union is discussing how to partner with that local community agency to provide access to financial services when consumers need them most.

Of course, it doesn’t have to be a top-tier disaster to bring out the branch. Even something like power outages from thunderstorms are reason enough to spring into action, Hunter says. The credit union knows it can be anywhere within a given radius quickly and is trying to be thoughtful about how and when it deploys the branch.

“These are all creative ways we can use that vehicle as an opportunity to serve our community,” Hunter says.

And when the next big storm hits, New Orleans Firemen’s is ready.

“If you’ve ever seen on TV what happens after a hurricane, it doesn’t do it any kind of justice,” Hunter says. “We’re talking about big trees blocking roads, powerlines on the ground, nobody can get gas — it’s a cash-only environment. The fact that we’re now ready for those things and able to reach out to certain areas changes how we can be more impactful.”

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James Hunter knows firsthand what homeownership can mean for a family’s future.

“Some people’s first love was basketball or football, mine was mortgages,” says Hunter, chief advocacy and culture officer at The New Orleans Firemen’s Federal Credit Union ($275.0M, Metarie, LA). “I’m enamored by homeownership.”

The Problem

Hunter’s enthusiasm for homeownership meets a tough reality in New Orleans, where economic barriers put buying a home out of reach for many.

A 2024 report found approximately 53% of New Orleans residents were homeowners, although that figure does jump slightly to 62% when expanded to cover the entire metro area. Still, the prevalence of low-wage jobs and one of the highest poverty rates in the nation — the Louisiana poverty rate hovers around 19%, compared with 10.6% nationally — suppresses homeownership in The Big Easy.

There are broader problems at play, as well. Louisiana ranks at or near the bottom of the nation when it comes to education, infrastructure, crime, opportunity, and more, according to a 2025 U.S. News & World Report study. Those factors and others have led many people to believe homeownership — and financial wellbeing in general — is simply out of reach for them.

“We have a unique situation where you have people who have been hit with persistent poverty, which is three generations of people who have experienced nothing but the same mindset [and] the same potential outcomes,” Hunter says. “That can stem from how you grew up to the hurricanes we’ve experienced and also going into more racial things like redlining. There are many things we’ve experienced here in Louisiana that can impact a lot of different areas.”

Like much of the country, rising prices and interest rates combined with inventory challenges have exacerbated the situation. And that’s before taking into account sky-high insurance premiums, which put housing even further out of reach for many borrowers.

“I’ve been in situations where someone’s insurance and taxes are higher than their principal and interest payments on their mortgage,” Hunter says. “That’s totally backward and sometimes prices borrowers out of a home.”

The Solution

Thanks to a $900,000 grant from the U.S. Treasury’s CDFI Fund, New Orleans Firemen’s is helping members get over that hump with a 100% loan-to-value mortgage that requires no down payment and no private mortgage insurance.

According to Hunter, the 100% LTV helps cover the down payment and other upfront costs. Additionally, he says, real estate agents may negotiate with sellers and builders to cover closing costs, and the credit union’s policies provide enough wiggle room to bridge that gap where needed.

“Two of the biggest things when buying a home are the down payment and the closing costs,” the advocacy and culture officer says. “That’s a nice chunk of change. A down payment and closing costs can add up to a lot of money people don’t have.”

In those instances where members can’t yet qualify, he adds, the credit union looks for ways to help people improve their finances and set a little money aside in the hope that improved savings and credit can get them to the finish line eventually.

The Results

Since launching the program a little more than five years ago, New Orleans Firemen’s has closed slightly fewer than 60 of these loans. That might not be a large number, but Hunter is quick to defend the program, noting the difficult environment for buyers these past few years.

“We have seen people who did not think they could apply or get approved for a mortgage find themselves in a home,” he says.

For example, a contractor who did some work for Judy Delucca, the credit union’s CEO, revealed during a conversation that he was struggling to qualify for a mortgage.

“We introduced him to our program and helped him not only get the home he wanted but also looked at his business and helped him expand his fleet,” Hunter says.

One element that makes the program so inspiring, Hunter adds, is that its success often flies in the face of conventional wisdom and helps members understand that they can take control of their financial lives.

“People listen to the news media and other resources that say interest rates are high and this is not the time to buy,” he says. “Why not find out if you can get qualified? And if not, what can you do to get ready?”

Although solving Louisiana’s insurance crisis will require legislative action, Hunter says finding ways to help more New Orleans residents achieve homeownership is a major growth and relationship opportunity for the credit union. It plans to continue to advocate for members and help them achieve financial success, whether that be through the CDFI Fund, foundations, or other avenues. That commitment recognizes both the challenges and the promise of homeownership and resonates with Hunter on a personal level.

“I come from an environment where homeownership wasn’t often possible,” he says. “So to be in a place where I see people be able to bridge that gap and build generational wealth is invaluable.”

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1. Grants For Educators

Credit Union of America ($1.7B, Wichita, KS) offers educator loans for school-related expenses and beyond. Its grant program, on the other hand, is for learning, says Bradley Dyer, Jr., senior business development officer.

The credit union funds its grants — up to $1,000 per application — with profits from its giveback credit card and returns more than $80,000 to schools every year via awards made in the spring and fall.

“We’ve put back over half a million dollars into Kansas classrooms, benefitting over 1,200 educators,” Dyer says.

Credit Union of America ensures the grant review committee includes at least one retired teacher every year, and it scrubs applications of information that might identify applicants. Although the grant is intended to benefit classroom learning, the credit union has relaxed that definition in recent years and, consequently, grant requests have increased in size. In response, the credit union doubled its previous grant amount of $500 to $1,000 in 2024.

Recipients may use grant money for classroom projects or supplies — everything from calculators to library books and beyond — or funnel the award toward field trips and other educational experiences. College educators, too, can apply and use the grant money for educational experiences for college students.

“Last year, when students were learning about the legal system, we gave a grant for them to take a trip to an actual courtroom to hear real lawyers debate a case,” Dyer says. “We might not have funded a field trip for students in the past. I’m not sure we felt that fell into the classroom category.”

Based in Wichita, Credit Union of America serves teachers in 15 school districts across the state. The bulk of the grant applications come from local teachers; however, the number coming from further afield has “grown substantially” in recent years, Dyer says.

2. A Holistic Approach To Back-To-School Readiness

During this year’s back-to-school season, TruWest Credit Union ($1.7B, Tempe, AZ) teamed up with Community Bridges, Inc. to deliver more than just supplies — the duo delivered support.

As the title sponsor of the 2025 Supply Drive and Back To School Giveaway, TruWest hosted a month-long drive, and provided backpacks and supplies for the event. But the event went even further, offering free laptops, haircuts, dental screenings, sports physicals, and more to remove barriers and set up students for success in every aspect of life. Over 1,800 individuals visited the event, which supplied nearly 1,400 backpacks for students to start the school year with confidence

“This kind of support is about investing in the whole child,” Natalia Chimbo-Andrade, director of community education and outreach at Community Bridges, Inc., said in a press release. “And TruWest was happy to increase access to essential resources for life and school.”

“We’re proud to support students and help families ease the stress of back-to-school season,” says Chris Kearney, CEO of TruWest. “Every child should have the supplies they need to feel prepared and ready to learn.”

3. CU In School

Students in select public school districts in Michigan will once again have the opportunity to open bank accounts, save money, and learn valuable financial skills this academic year via in-school branches hosted by LOC Credit Union ($457.8M, Farmington, MI). What’s more, these in-school branches also offer hands-on experience in financial operations to students working under credit union supervision. LOC opened its first in-school branch in 1996 and now operates 19 such facilities across Farmington Public Schools, Hartland Consolidated Schools, and Howell Public Schools.

According to data from Callahan & Associates, credit unions operate almost 800 in-school branches across elementary, middle, and high school locations. Those facilities have been an industry fixture for decades, providing financial education and hands-on experience to students of all ages while exposing them to the industry’s “people helping people” philosophy.

4. CU On TV

Leaders Credit Union ($1.2B, Jackson, TN) is using its sponsored time on local newscast WREG to help families manage the high cost of heading back to school. In a recent appearance, Carrie Cantrell, community engagement specialist at Leaders, suggested families work with their students to inventory reusable supplies from last year, take advantage of tax-free weekends, or pair up with other families to buy school supplies in bulk to combat rising prices.

5. In Touch With Tech Tools

Tax dollars might pay for public education, but they don’t cover the equipment necessary for classroom success. That’s why many credit unions offer technology loans to help families meet their students’ educational needs. Laptop loans are among the most popular, but credit unions also offer programs that cover iPads, new smartphones, and other tech tools.

Community West Credit Union ($251.9M, Kentwood, MI) offers interest-free laptop loans for members between the ages of 18 and 24. Financing after the fact is available for members who bring in receipts for tablets or laptops within 30 days of purchase. The credit union reimburses their accounts and allows them to spread payments over 24 months.

6. School Spirit

Jack Daniel Employees’ Credit Union ($52.4M, Lynchburg, TN) hosted a back-to-school apple tree in its branch — similar to a holiday “Angel Tree” — so members and the community at large could anonymously donate school supplies and other materials for needy families with children heading back to school.

“In so many aspects of life in a small town, people come together just to lift one another up,” CEO Pam Case said on the credit union’s website. “This is evident whether it is a tragedy impacting a family or providing a hand-up, such as the Back-to-School Apple Tree.”

The cooperative also offers an in-school branch, branded as Raiders Credit Union, for students at Lynchburg Elementary School.

7. A Penny (Or More) For Private School

Approximately 4.7 million K-12 students were enrolled at private schools in 2021, according to the most recent data available from the National Center for Education Statistics. That’s approximately 9% of the total student population. Many state legislatures have considered rules to allow parents to use taxpayer-funded vouchers and public money to pay for private schools, but in the meantime, credit unions are also working to make admission more affordable.

At Pelican State Credit Union ($769.1M, Baton Rouge, LA), private school loans are available starting at 13.11% APR with a one-year term. If a member’s loan application is approved, schools submit tuition invoices to the credit union, which then pays the school directly.

8. Student Support In The Tarheel State

The nation’s second-largest credit union, State Employees’ Credit Union ($55.4B, Raleigh, NC), spent the month of July collecting school supplies for Tarheel State students at all 275 of its branches as part of the Governor’s School Supply Drive. This is the seventh year the credit union has served as a drop-off site for items like pencils, paper, headphones, sanitary wipes, and more, and North Carolina Gov. Josh Stein visited the credit union’s Salisbury Street location on July 2 to kick off the event.

To maximize impact at the local level, donated supplies go to public schools in the counties where they are collected.

9. Summer School, So Cool

Learning shouldn’t stop just because it’s summer. With that in mind, Abound Federal Credit Union ($2.5B, Radcliff, KY) partnered with Western Kentucky University in 2020 to host a financial education summer camp for high school students. For the 2025 session, 45 high school sophomores, juniors, and seniors spent five days and four nights on the WKU campus living in dorms, eating in the university cafeteria, and getting a taste of college life — all while taking a deep dive into the basics of personal finance.

This year, approximately 45 high school sophomores, juniors, and seniors will arrive at the WKU campus in mid-June for five days and four nights. They’ll stay in the dorms, eat at the cafeteria, and generally gain a taste of the college experience.

“We’ve built financial education into our overall strategy, supporting schools, colleges, the military, and other groups across Central Kentucky,” says Ray Springsteen, CEO of Abound. “We have about 100 team members directly involved in delivering financial education, and we reached over 20,000 individuals last year. This work is part of our culture and brand.”

Don’t Stop Here. Abound Credit Union helps keep financial literacy alive through a dynamic summer camp that blends campus life with real-world money skills. Read more in “School’s Out For Summer, But Financial Education Continues.”

10. Sound Scholarships

Sound Credit Union ($3.2B, Tacoma, WA) recently awarded $20,000 in scholarship to 13 students continuing their education at colleges and universities in Washington and beyond. The cooperative selected recipients based on academic achievements, community involvement, and commitment to furthering their education.

Although credit unions are not required to formally log their philanthropic work, the industry awards hundreds of thousands of dollars every year to students across the country, making secondary education a major beneficiary of credit unions’ commitment to community.

“By supporting these students, we’re investing in future leaders — individuals we believe will make a meaningful impact in their communities,” Jennifer Reed, Sound’s vice president of public relations, said in a press release.

The post 10 Ways Credit Unions Support Back-To-School Season appeared first on CreditUnions.com.

Consumers are rattled, to say the least.

The White House has taken steps in the past four months to shrink the federal government by reducing the number of government employees. Many large private sector firms are also shrinking their workforce, with layoff announcements totaling nearly half a million in the first three months of the year. At the same time, the administration has announced a range of tariffs that are likely to raise prices for consumers on everything from groceries to cars, electronics, and more. Meanwhile, the Federal Reserve’s future moves remain unclear, consumer sentiment is down, and economic anxiety is rising as a result of widespread layoffs and economic uncertainty.

Given all of this, the response of credit union finance leaders runs the gamut from seeing how things develop to scrambling to adjust their balance sheets.

“My gut says we’re in for a rocky road,” says Leanne McGuinness, CFO at The Summit Federal Credit Union ($1.4B, Rochester, NY). “Not like 2008-2010; I don’t think we have a fundamental underlying mess in our balance sheet. I think the combination of inflation and a possible recession at the same time could hurt the economy to the point where I’m not sure what we could do to get out of that easily.”

Save Or Spend?

Despite some general uneasiness, deposits are a bright spot. Some credit unions have increased their deposit outlook — The Summit raised its projection from 7% growth to 8% — and others have pulled back from deposit promotions. Uncertainty around the job market has also resulted in a flight to safety, and some CFOs say members are bringing in a larger-than-usual influx of deposits. The bigger question is how long those funds will stick around.

“Locally the demand for deposits is pretty high, especially on the community bank side,” says Seth Rudd, CFO at Leaders Credit Union ($1.1B, Jackson, TN). “We’d love to take this opportunity to pick up some market share and pick up deposits, but in our market deposit prices remain pretty high.”

For Rudd, the deciding factor is about the credit union’s mission.

“You’re running your balance sheet, but you’re also serving your membership,” he says. “They still need that car loan. They still need lending. For you to pull out because of economic uncertainty, you might want to think about what your mission truly is.”

So far, that hasn’t been an issue at Leaders. A high-yield savings account introduced a few years ago continues to attract new business, and many members are moving maturing CDs into that account. The credit union also is hitting its goals for new checking accounts, although Rudd says those balances are increasing at a slower pace than before.

“It does seem like people are keeping less in their checking account,” he says. “That begs the question: Are they moving it into high-yield savings, which we did see, or are they spending it? I think a lot of it is moving into the high-yield savings.”

That thesis is backed up by the fact that Leaders hasn’t seen a shift in spending patterns related to where members shop or dine.

The Lending Landscape

I think there are more than a couple of credit unions looking at what a bank charter might look like if forced to go that way.

Meanwhile, McGuinness at The Summit has already revamped her 2025 budget forecast, which she put together last fall when the economic mindset was more optimistic.

“I’m not feeling like loan growth is going to meet my original projections,” she says. “I redid the budget in the first quarter to look at a couple of scenarios — we did stress testing around what happens at various low-growth levels and loan loss levels. You can’t get blood from a stone.”

McGuinness and many other finance leaders say auto lending presented a small but unexpected boom during the first quarter, but the general consensus is that’s the result of consumers trying to buy before tariffs impact auto prices and isn’t likely to continue.

Some CFOs suggested rising car prices could also be a blessing in disguise if the economy goes south.

“We’re watching the price of [new and used] autos,” says Toni Davisson, CFO at Spero Financial Federal Credit Union ($702.1M, Greenville, SC). “If we have to do a repossession and sell at auction, what kind of values are we going to get?”

Although some credit unions have tightened their underwriting slightly, most haven’t taken that step yet. Some are even expanding their lending to reach consumers with weaker credit. Regardless, shops also are shifting pricing, particularly around deals with higher loan-to-value ratios, to compensate for changes in the market.

“We’re trying to get ahead if auto values go up — if tariffs stick and get passed on to the consumer,” says Dan Leclerc, CFO at Ent Credit Union ($9.8B, Colorado Springs, CO). “We’re still funding, but if it’s a higher LTV, we’re charging a higher rate to make up for it.”

Elsewhere in the loan portfolio, the approach to housing largely isn’t changing, in part because the situation hasn’t changed. There’s still a shortage of available, affordable housing, and high prices and interest rates are locking many buyers out — particularly younger ones. But the overall housing picture remains top of mind for many.

“We’re watching local unemployment and real estate market trends,” says Simeon Tabakov, CFO at MyPoint Credit Union ($650.9M, San Diego, CA). “That can translate into consumer confidence or decreased spending, depending on which way it goes. If people feel confident, they spend money. The opposite is true, too.”

Whichever way it goes, credit unions are preparing. Although first quarter loan loss reserves overall held relatively steady compared to the previous quarter, they’re up 6.4% compared to the first quarter of 2024.

Tax Status And Regulatory Guidance

The constantly shifting economic news has made it difficult for many finance leaders to plan. EFCU Financial ($1.4B, Baton Rouge, LA) has modeled a variety of scenarios — from recessions to terrorist attacks and everything in between — but has yet to change its current plans.

“I was always taught to invest in good times and bad, but we’re here ultimately to serve the members,” says Tom Kuslikis, a former CFO and current CEO at EFCU Financial ($1.4B, Baton Rouge, LA). “We’re not going to scale back that investment. It’s critical for our long-term success.”

Delinquency and charge-off rates continue to be key indicators of trouble, but unemployment trends are also top of mind. Many of these credit union leaders say layoffs have not yet impacted their fields of membership, but local reductions in force could have a domino effect as layoffs would likely increase delinquencies, slow lending, hurt liquidity, and more.

Ent has raised its loss reserves, but Leclerc says that’s partly a function of CECL, which didn’t take effect until two years ago.

“We didn’t have CECL pre-2023, so it’s interesting to go back and do that testing,” he says. “We’re still learning, and we feel we have a much better grasp on it, but we realize how much economic forecasting plays a role in our reserves compared to what it used to.”

Regulation — and its impact on the balance sheet — remains a top-level concern. Nearly every credit union leader interviewed for this story cited worries about the future of the credit union tax status and NCUA board.

“I would rather have a little more direction and certainty from a regulatory standpoint than be whipsawed between two different administrations,” Kuslikis says.

Ongoing uncertainty on that front could alter the entire industry landscape — especially if some of the balance sheet advantages that come with being a credit union are chipped away.

“I think there are more than a couple of credit unions looking at what a bank charter might look like if forced to go that way,” says Mike Sacher, a credit union consultant and former CFO.

Here We Go Again

If you randomly selected a date from 2013 to 2025, you would probably find something to be worried about from an economic perspective. This is unusual because political forces are causing a lot of the concern, but that’s part of being in banking. It’s a natural part of trying to manage the balance sheet.

If there’s a silver lining, it’s that most finance leaders in the industry have been through this kind of thing before.

Although there hasn’t been a long-running recession in more than 15 years, an economic downturn and two-month recession brought on by the pandemic, widespread work stoppages due to shelter-in-place directives, rampant inflation, political turmoil, and more have occurred in the past five years.

“If you randomly selected a date from 2013 to 2025, you would probably find something to be worried about from an economic perspective,” says Rudd at Leaders. “This is unusual because political forces are causing a lot of the concern, but that’s part of being in banking. It’s a natural part of trying to manage the balance sheet.”

Industry leaders are confident they can handle whatever comes their way. The key, many say, is to remain focused on long-term goals and on the credit union mission of serving the underserved.

“We got through the Great Recession and the world recovered,” Sacher says. “There were lots of areas where you needed to defend yourself and strengthen internal and financial controls. We look back at that crisis and say, ‘Wow, the opportunities were unbelievable, will we ever have those opportunities again?’ I suspect we’ll look back in a couple of years and have those same kind of conclusions for what’s happening today.”

Equip Your Leaders With Data-Driven Insights To Navigate Uncertainty. Join a Callahan advisor for a complimentary 1:1 session to analyze your performance reports. We’ll benchmark your credit union against two to three peer groups of your choice and provide a detailed report of our findings at the end of the session to help your team make informed strategic decisions. Request your free session today.

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Working closely with local universities is nothing new for EFCU Financial ($1.1B, Baton Rouge, LA). The Greater Baton Rouge area cooperative has built a longstanding relationship with Louisiana State University and in 2024 was the Centennial Partner of LSU’s Tiger Stadium. Given its history, the credit union’s participation in a mock negotiation to prepare student-athletes for potential Name, Image, and Likeness (NIL) opportunities was a clear fit.

“We have a great relationship with university athletics,” says Tom Kuslikis, CEO of EFCU Financial. “They naturally thought of us.”

A Role That Hits Close to Home

LSU Sports Properties — the exclusive marketing and multimedia rights holder of LSU Athletics — designed the panel and facilitated the NIL negotiation on a Wednesday evening in November.

In a room located at the northwest corner of Tiger Stadium, two credit union representatives discussed the details of a fictitious NIL deal with a baseball player. Adam Brice, chief lending officer at EFCU Financial, and Garrett Ganucheau, vice president of business development, played the role of potential partners. It was not a stretch for the two sports fans.

As 25 student-athletes and other attendees watched, panelists representing the sponsor and the athlete discussed what they’d expect from a $20,000 budget — from photo shoots and in-person appearances, to billboard exposure, social media interactions, and more.

“NIL is still so new, it’s incredibly valuable to give these student-athletes an idea of how NIL deals come together and what types of commitments sponsors might ask them to make,” Kuslikis says. “Participating was also valuable for our credit union as we thought through our future options.”

Indeed, everyone in attendance learned more about the inner workings of NIL partnerships, and Brice and Ganucheau fielded more than a few questions from the athletes, including:

• Do we have to pay taxes on money received through NIL? Yes, and LSU responded it would withhold taxes for athletes.
• Can athletes wear licensed university apparel for photoshoots? LSU must grant permission or the vendor must be under contract with LSU for student-athletes to wear gameday apparel.

Mock Negotiations. Real-Life Lessons.

Since participating in the NIL mock negotiation, EFCU Financial has officially partnered with two athletes from LSU baseball and will be kicking off a social media campaign in the spring of 2025. Although these real-life partnerships have a different structure from the fictional scenario presented last winter, the credit union learned a lot about the process through the mock negotiation.

“LSU does a good job putting guardrails in place, but we also did our own due diligence,” Kuslikis says.

For EFCU Financial’s NIL deals, the credit union worked with LSU Sports Properties, which serves as an intermediary in the NIL process. EFCU Financial researched players without current NIL deals and gave the names to LSU Sports Properties. The credit union selected several of the highest-performing baseball players on the team and met with its top picks to get a better feel for their character.

“We wanted to vet as much as possible to ensure the athletes we selected are the right fit and are less likely to pose reputational risk,” Kuslikis says. “However, risk is going to be there. These are still primarily 18- and 19-year-old kids, after all.”

LSU Sports Properties plays a role here, too. In its role supporting and guiding student-athletes, it ensures NIL agreements are mutually beneficial. It also ensures agreements protect and strengthen the LSU athletics brand.

EFCU Financial singled out LSU baseball because the team is regularly ranked second or third in the nation and commands a huge local following. The two athletes it sponsors will interact primarily with the credit union’s social media during baseball season; however, both have promising career prospects after they leave LSU. One is even expected to be a first round draft pick for Major League Baseball.

LSU Sports Properties coordinated the mock negotiation for student-athletes interested in learning more about NIL. Representatives from EFCU Financial played the role of sponsor, reviewing details such as what they expected from their fictional athlete and answering questions from the audience.

Audience members, including 25 student-athletes, learned about taking control of their personal brand and parlaying that into future success.

The Larger Strategy

Like many credit unions, EFCU Financial has an older membership base. It views NIL as one way to target a younger audience and connect with community members that have an affinity for local sports.

In addition to its relationship with LSU, the credit union also is an active supporter of Southern University and A&M College, the largest HBCU in the state and an institution with which the credit union would like to expand its partnership.

“Investing in athletes there can help us build relationships with students, staff, and the larger community,” Kuslikis says.

The cooperative’s overall strategic goals include increasing the diversity of its current membership and decreasing its average age. It expects these university partnerships to help bring in students at the beginning of their financial journey and result in lifelong banking relationships. However, Kuslikis says NIL partnerships are just one component of the credit union’s larger strategy to reach the next generation of members.

Light Lift. Long-Term Potential.

NIL is in its infancy, but EFCU Financial sees a lot of potential for enduring success.

As a major fan of LSU baseball himself, chief lending officer Brice has taken on managing the relationships with the athletes. Meanwhile, CEO Kuslikis reviews the contracts, and the marketing team manages the day-to-day tasks, such as coordinating photo shoots and creating social media posts. These are the pieces of a long-term strategy at EFCU Financial.

“Supporting students and building on the brand makes sense,” Kuslikis says. “And hopefully, by partnering with athletes before they go pro, we can build long-term relationships that continue to progress.”

For other credit unions considering NIL, Kuslikis advises starting small.

“You don’t have to go after the quarterback of the college football team,” he says. “There are a lot of great players out there that have brand recognition in the communities you’re serving.”

But remember, it’s a partnership, not a fan club. It might be easy to succumb to star power but be judicious in selections. Let their talent inspire, not distract.

“Be careful about who you partner with and do your due diligence to understand their character,” the CEO says. “Even then, you should still be mentally prepared for young athletes to make mistakes.”

Exclusive Client Content: Callahan’s Credit Union Playbook For NIL Success. New to Name, Image, and Likeness partnerships? Download this workbook from Callahan & Associates for guidance and best practices from credit unions in the know, discussion questions and interactive activities for your team, and more. Log into the Callahan Client Portal and download today.

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But what really drives the decision to convert a core? What tips the scale in favor of one provider over another?

With these questions in mind, Callahan & Associates surveyed credit unions of all sizes from across the country, following up for more detail where needed, to discover the factors credit union leaders are prioritizing when making one of their organization’s biggest investments.

CUSA Federal Credit Union ($33.3M, Covington, LA) dedicated two years to its search process, finally converting from Fiserv to Sharetec in March 2023. Price differences were a major part of the decision, says CEO Jeana Rodivich.

“Much to our surprise, there was about a 40% reduction in expense,” she says, adding that CUSA’s leadership felt it had outgrown Fiserv’s system and were concerned about plans to move clients to the Portico platform.

Rodivich adds that improved processes and fewer steps to integration were also crucial.

“Our new core can submit files to our card processor to update account changes, new card orders, and more,” she says. “Previously we had to do all of that manually on each system.”

Additionally, Rodivich says members have a more robust mobile app banded to the credit union, and loan applications now flow directly into the loan platform, which has sped up processing.

Not Too Old, But Not A Startup

Pricing was a common theme, but one of the most frequent responses related to increased efficiency and easier integration with third-party vendors.

“Our members wanted a digital banking experience similar to what a big bank or a fintech might offer, like Chime or Chase or even American Express,” says the CEO of a mid-size credit union in the upper Midwest who asked to remain anonymous. “They wanted that experience where you could have card controls integrated right into the app. They didn’t want a companion app. They wanted integrated credit monitoring, personal financial management, and things like account aggregation for external accounts.”

Our members wanted a digital banking experience similar to what a big bank or a fintech might offer, like Chime or Chase or even American Express. They wanted that experience where you could have card controls integrated right into the app. They didn’t want a companion app.

When the credit union’s former provider said those features weren’t on the road map, it became clear it was time to find a new core. After more than a decade on its previous platform, the credit union recently switched to Corelation’s Keystone platform. It considered multiple providers, but a big factor that tipped the scales was Corelation founder John Landis’s experience and reputation.

“He’s written two previous cores, and his second core is still very, very prevalent,” the CEO says.

A strong reputation with other vendors and the performance of other shops on the platform was the icing on the cake.

“Corelation was kind of the Goldilocks core for us because it was new enough to be innovative and written in a modern way but not a startup,” the CEO says. “It was proven.”

Security And Integration

Although DuPage Credit Union ($575.2M, Naperville, IL) also prioritized integration, that wasn’t the only factor in the final decision to move from Fiserv to Jack Henry.

“Given the sensitive nature of financial data, strong security measures and compliance with regulations were required,” explains Frank Sposito, chief technology and security officer at DuPage. “We prioritized processors that offered comprehensive features tailored for credit unions, such as member management, loan processing, and compliance tools. The ability to support our specific operational needs was crucial.”

Ease of use for staff and members was also a priority, Sposito adds.

“We needed a system that could grow with our membership and adapt to changing demands without excessive hardware investments,” he says. “We looked at up-front and ongoing costs and sought a solution that provided the best value for our budget … ensuring the selected core processor would not only meet our current needs but also support our future growth as a credit union.”

Culture Is Key

Another key factor for many is culture. Yolo Federal Credit Union ($430.5M, Woodland, CA) recently converted from Finastra’s UltraData platform to Corelation’s Keystone platform, having spent four decades on UltraData. To hear CEO Jenee Rawlings tell it, the intangibles were almost as important as the business capabilities.

“Beyond the critical factors of functionality, security, and ease of integration, company culture and values are important and should align well with our own,” Rawlings says.

For IC Federal Credit Union ($609.0M, Fitchburg, MA), another recent convert to Corelation, an understanding of the credit union difference was key to making the sale.

“The vendor completely understood credit unions and didn’t lump us in with all financial institutions,” says CEO Chris Hendry. “It also caters only to credit unions and is small enough that we could trust its customer service model would actually meet our needs.”

Evaluating Core Processors? Peer Suite Has You Covered. Whether you’re a credit union evaluating core processing solutions or a supplier evaluating market share, Peer Suite is loaded with technology partner data that makes it easy to uncover deeper insights to fuel your strategies. Curious to learn more? Schedule a conversation with Callahan & Associates today. Learn more today.

The post What Do Credit Unions REALLY Want From Their Core Processors? appeared first on CreditUnions.com.

Amid ongoing shifts in the industry, some shops are choosing to work with core processing providers that exclusively serve credit unions as opposed to vendors that cast a wider net and also work with banks and other financial firms.

Many cooperatives are drawn to credit union-only providers for their tailored understanding of the industry. Companies like Corelation, Sharetec Systems, CU*Answers, and others claim to offer clients member-centric tools and regulatory expertise that can be difficult to find elsewhere.

Switching to a core provider that serves credit unions and beyond? Two leaders offer the advice they’d have given themselves if they had to do it all over again in “Pick Your Provider: Why Bigger Is (Sometimes) Better.”

Weighing Value Versus Cost

Not surprisingly, operational efficiency and cost are often key components of the decision-making process — especially for smaller institutions.

After more than two decades with Sharetec, a web-based core provider specifically for credit unions, Gas & Electric Credit Union ($119.9M, Rock Island, IL) made the switch to another credit union-only provider: CU-Interface, a CUSO based in Richfield, OH.

“We had been with Sharetec for 23 years, but there many reasons we decided to look at moving on,” explains Daryl Empen, president of Gas & Electric.

The credit union worked closely with a consultant to narrow down its list of potential new providers, taking a close look at Flex, CU*Answers, and CU-Interface.

“After seeing demos of each, we ruled out CU*Answers right away, as the entire team felt that the other two vendors were a better fit and offered more efficiencies,” he says. “We really liked Flex but had some reservations after a site visit with another credit union. We had two site visits for CU-Interface and their mPowered platform, and after those the choice was clear.”

Empen says the switch to CU-Interface has helped with automation, making the credit union’s back office more efficient. For example, ACH processing and returns take significantly less time.

First Conversion In 25 Years

When Everglades Federal Credit Union ($54.8M, Clewiston, FL) made the switch from Fiserv to CU*South in 2024, it was the credit union’s first conversion in 25 years. Although converting from a major player to a credit union-specific provider was part of the equation, the biggest aspect in the decision was ensuring better value for what it was paying.

CEO Marta Betancourt expressed frustration with the challenges her organization faced due to a transition to new products that were forced upon them. The previous system they were using was no longer supported, and the switch to new systems resulted in a number of difficulties. These included the high costs of making the transition, even though the original product was functioning well.

“Additionally, the new system created operational inefficiencies, such as taking up to 45 minutes to open a savings or checking account and requiring manual reporting, which added to our workloads,” says Betancourt.

Switching vendors allowed Everglades FCU to improve not only internal processes but also member experience.

“Life is so much easier,” the CEO says. “The members love the new online banking and mobile app, and we are able to offer more products for less than half the cost.”

Support for Smaller Institutions

Outside of operational efficiency and cost, many institutions are drawn to credit union-only providers for their tailored understanding of the industry and quality of service. Smaller, more specialized vendors might be able to provide more timely and effective support.

“Another challenge we faced related to [Fiserv’s] ticketing system for resolution of problems,” Betancourt says. “We sometimes weren’t getting resolutions until a week or so later. CU*South provided a much more proactive and organized approach. The company worked closely with the team for eight months before the conversion launch, setting up configurations and holding biweekly calls with different departments.”

Betancourt says that process allowed for more careful planning and attention to detail. She says CU*South also demonstrated patience, understanding that their customers can’t absorb all the complex information immediately.

For Gas & Electric, Empen says support is as important — if not more — than the day-to-day product.

“We expect all cores to work most of the time, so when there is an issue, the turnaround time on support and the ability to resolve is critical,” he says. “We also like the fact they are CUSO-controlled, and we can have a say in the future development of the system.”

Indeed, one of the most common perks associated with credit union-exclusive core providers is the networking and collaboration they facilitate among their clients.

Empen says although the decision to stick with a credit union-only provider wasn’t necessarily intentional, it does contribute to the organization feeling good about its decision.

Similar to Everglades FCU, CUSA Federal Credit Union ($31.8M, Covington, LA) made the switch from Fiserv to a credit union-only core provider, converting to Sharetec in 2023.

“Small credit unions lean on vendor support so heavily due to often small staff sizes,” says Jeana Rodivich, CEO of CUSA. “We have to be able to depend on all of our vendors to provide the support they promise. Support was our No. 1 priority.”

Rodivich says working with an exclusive credit union provider “definitely made an impact” in the decision-making process.

“Being a small credit union, we take comfort in the fact this is all they do and they treat each credit union the same, regardless of size,” she says. “We feel like we’re part of a family now. The user conference each year is awesome, and they always make you feel welcome and happy to see you.”
When it comes to a core conversion, what really tips the scale to choose one provider over another. A survey of industry leaders sheds some light, and it extends way beyond the price tag. Read more today.

Not A ‘Must Have,’ But A ‘Nice To Have’

Credit union-exclusive status helps, but it isn’t the only consideration that goes into making the final decision on a new core provider.

At one mid-sized credit union in the Upper Midwest — whose CEO asked to remain anonymous to speak freely — working with a credit union-only provider was nice, but it wasn’t a major factor in the decision-making process during a recent conversion to Corelation’s Keystone platform.

“We like working with credit union-focused organizations if we can, but it’s not always possible,” he says. “More than anything, [we chose our core because] it was written by experienced people with a proven track record of serving credit unions.”

One of the bonuses of the new platform was the level of customization available, which this CEO says wasn’t available with his last provider.

“We looked at every aspect of how we run the business and how we want to run the business for the future,” he says. “We could be really granular and customizable with Keystone, which is important to credit unions because we all kind of have our own secret sauce.”

Aaron Passman contributed to this article.

Evaluating Core Processors? Peer Suite Has You Covered. Whether you’re a credit union evaluating core processing solutions or a supplier evaluating market share, Peer Suite is loaded with technology partner data that makes it easy to uncover deeper insights to fuel your strategies. Curious to learn more? Schedule a conversation with Callahan & Associates today. Learn more today.

The post Pick Your Provider: Why Some Shops Choose Credit Union-Only Core Processors appeared first on CreditUnions.com.

Top-Level Takeaways

• Networking is crucial for career advancement, providing opportunities for mentorship and knowledge sharing.
• Building professional networks also can lead to personal satisfaction and stronger interpersonal connections.
• Credit union leaders highlight the importance of actively engaging in professional networks to achieve both career and personal growth.

Recent research from CareerBuilder.com shows the average millennial spends fewer than three years at a job before moving on — a stark change from the days when workers might spend decades or even an entire career with just one firm.

To keep young staff members around for the long haul, senior leaders need to provide ample reasons to stay. Fortunately, networking has never been easier to access — and it’s never been more critical to career longevity. But networking is more than just sharing posts on LinkedIn or swapping business cards at conferences. Today, networking entails planting roots in the movement and cultivating connections beyond the branch.

“Networks help drive professional development by connecting you to individuals with similar and different expertise and experiences,” says Priscilla Awkard, vice president of member advisory centers for Coastal Federal Credit Union ($5.0B, Raleigh, NC). “They provide resources, insights, and opportunities you might otherwise have never encountered.”

They also offer a sense of community — a vital support system to help participants meet challenges while celebrating achievements.

Awkard, for example, belongs to such diverse networks as the African-American Credit Union Coalition (she’s currently its national board secretary), the Cooperative Council of NC, and the Phoenix Club Advisory Board and Black Alumni Network for her alma mater, Elon University.

In the realm of career advancement, networks function as dynamic ecosystems, offering pathways to mentorship, skill enhancement, and exposure to new ideas. This interconnectedness extends beyond the confines of traditional professional settings, resonating deeply with personal aspirations and experiences.

There’s an intentionality to choosing such professional associations, says Stefy Tomlin, vice president of innovation at True Sky Federal Credit Union ($931.7M, Oklahoma City).

“I seek networks that resonate with my personal or professional goals,” Tomlin says. “Often, I discover suitable networks through recommendations from peers who share similar goals and interests.”

Tomlin says she’s currently part of the Filene Research Institute’s i3 Program, the OKC Ecosystem Builders, The Hundred, the Cornerstone League’s Credit Union Young Professionals, and the Worldwide Foundation for Credit Unions’ Global Women’s Leadership Network. She also has started forming connections within the Oklahoma Business Incubator Association.

These groups have not only exposed her to a diverse group of people and new ideas but also provided the opportunity to increase her exposure within the credit union community, widening her circle of influence.

The Dual Nature Of Networking

Then there’s James Hunter, chief diversity, equity, and inclusion officer at New Orleans Firemen’s FCU ($266.9M, New Orleans, LA), which he joined in December 2022 after heading up mortgage lending at Hope FCU in Mississippi and working at national banks.

His affiliations include serving locally on a Habitat for Humanity board in St. Tammany Parish and nationally on the board for Inclusiv. He points to the important role networking plays in activities such as credit union advocacy during the GAC and building a house for Habitat for Humanity.

“When it comes to networking, I try to find things that align with my values,” Hunter says. “Doing that gives me a sense of belonging, of being around like-minded people, of having the ability to be with people of all walks of life. Being in a servant-leadership role gives me goosebumps.”

This dual nature of networking underscores its profound impact — it not only empowers individuals to achieve their aspirations but also fosters a sense of belonging within a broader tapestry of interconnected lives.

An array of experiences and professional development opportunities, combined with drive and passion, has positioned James Hunter for success in the field of DEI. Read more in “A Patchwork Path To Equity And Justice For All.” 

Networks Beget Networks

Credit unions are the center around which the professional lives of Awkard, Tomlin, and Hunter revolve, but the workplace connections these leaders have formed supersede the cooperative movement.

“I’ve connected people from my credit union world with people from my sorority world and my college world,” Awkard says. “Networks that are good soil bear fruit that span time and space. If I find one or two people with a common interest to me, that becomes a network.”

And from that good soil can spring new professional opportunities.

Tomlin at True Sky says she cultivated connections with peers across different industries during her time as a graduate student at the University of Oklahoma and continued to maintain those ties even after graduation.

“Eventually, one of my peers extended an invitation to join her organization, which resulted in a new position being created for me,” Tomlin says. “I accepted this opportunity not only for its potential for professional development but also for its financial benefits.”

A Networking Comfort Zone

There are innumerable benefits to cultivating strong networks; there are also plenty of hurdles to doing so. For introverts, for example, connecting like this can feel like a huge rock to push up a hill, Awkard says. But she has a few strategies that might work for them.

“Start small with an easy-to-reach goal, like connecting on LinkedIn with one person,” she says. “Find one-on-one or small group conversations with people that have some type of connection, where you will feel more comfortable. In those settings you don’t always have to speak much. Active listening is just as important.”

After that initial outreach or connection, it’s important to follow-up and check-in regularly, the Coastal executive advises.

“That’s how you build rapport and relationships,” Awkard says. “It’s so much easier to talk to people you know.”

Tomlin agrees that smaller, more tangible steps are the best way to start a journey of network building.

“My advice is to start small and focus on quality connections,” the True Sky VP says. “Find common ground to initiate conversations.”

Being authentic also is important.

“Embrace your introverted qualities even if that means taking breaks every once in a while to recharge,” Tomlin says.

The True Sky vice president adds that online networks provide many opportunities to interact that could offer a more comfortable environment.

Hunter at New Orleans Firemen’s adds that it’s not necessary to be gregarious to benefit from networks.

“You don’t have to be an extrovert to network successfully,” he says. “Just don’t be afraid to take part in what might be a life-changing experience by being a person in a shell. It does you no good.”

Stay Or Go?

The emotional component is integral to any network and aligning them with personal values can be as important as aligning them with professional goals.

“The way a network makes me feel is important,” Hunter says. “It’s a two-way street. There was one I became part of that my emotional guidance system told me, ‘This is not what you want.’ That shows in how you respond in your work. I decided to resign from that board. I wasn’t adding value and not really getting any.”

Tomlin, meanwhile, says she tries to ensure a network’s goals align with her own. She also makes sure structure and planning are in place for activities and network mechanisms.

“This provides cadence and enables participants of the network to interact in a more meaningful way,” she says.

Meanwhile, the True Sky vice president says, participants who are not actively engaged in or passionate about the objectives of the network usually reflect the group’s lack of reach and impact.

It could also reflect the changing lives of participants. For those who find themselves in such situation, it might be a cue to cut that network loose.

“You know it’s not worth your time when there is no engagement and limited value,” says Awkard at Coastal. “If your drive and passion for the organization has diminished over time, that’s not always a bad thing. Organizations, like people, are sometimes only there for a season in your life.”

The post Career Advancement? You’re Gonna Need A Network. appeared first on CreditUnions.com.

Corporate DEI programs in the United States have become more prevalent in recent years. Among credit unions, some have closely examined their role in advancing diversity, equity, and inclusion at their shops and beyond, integrating it into their cultures and embracing it as a core value. But as a relatively new area of focus, there isn’t a clear career path to becoming a senior leader.

For James Hunter, chief diversity, equity, and inclusion officer for New Orleans Firemen’s Federal Credit Union ($255.6M, Metairie, LA), his journey to the C-suite has included a patchwork of exceptional experiences and perspectives, including as director of real estate lending at NOFFCU and senior vice president of mortgage at Hope Federal Credit Union ($570.3M, Jackson, MS).

Hunter put himself through school — earning a Bachelor of Arts degree and then a master’s degree in public administration — and says he was often the only Black person in the classroom. This personal history has sharpened his focus on two critical words not represented in the DEI acronym —  belonging and justice.

“In my life, I’ve experienced what it feels like to not be included, which helps me better understand my niche today,” Hunter says.

While he served as SVP of mortgage at Hope, the credit union increased mortgage lending by more than 117% to people of color, first-time homebuyers, and women.

“There was a big homeownership divide in the deep south that still persists,” Hunter says. “We created a product that was revolutionary at the time, a loan that offered up to 100% financing with no private mortgage insurance.”

By keeping loans like this on its balance sheet, Hope was able to offer creative solutions and help people turn around their personal and familial narratives by building and sustaining generational wealth. Even during COVID challenges, the members who had these loans managed to stay in their homes.

Before joining NOFFCU in December 2022 and his nearly three-year stint at Hope before that, Hunter led multiple departments at Arkansas Federal Credit Union ($2.3B, Little Rock, AR) as well as held prominent roles at some of the largest financial institutions in the country. He served as an area underwriting manager for Wells Fargo and traveled the country during the Great Recession to help struggling homeowners modify their mortgages. Hunter also served as head of the telesales division for Washington Mutual Bank and spent several years in public service at a water system.

“I learned a lot about lending best practices and how to streamline processes, especially at Wells Fargo, where I managed 40 underwriters in two different states,” Hunter says. “Joining their travel team to modify mortgages was one of my pivotal moments. Those experiences are like patches on the quilt I take with me as I try to bring what worked well into new environments and execute on a grander scale.”

One example of how Hunter has used past experiences in new environments is NOFFCU’s 100% mortgage loan, which combines the best of VA, FHA, and rural development loans.

“We need to give people a chance to escape zip code destiny and persistent poverty,” Hunter says. “Removing barriers like down payments and closing costs can help turn a rent payment into an affordable mortgage payment that allows families to settle in and get involved — know where their kids will go to school and take pride in their local community.”

During his graduate studies, Hunter learned to look beyond mission statements to closely examine policies and uncover what organizations are — and aren’t — doing in practice. That includes how credit unions are serving the low-to-moderate income individuals many were created to serve.

As part of his industry service, Hunter serves on the board of Inclusiv, an organization that specializes in supporting credit unions that serve underserved markets. That’s where he met Judy Delucca, CEO of NOFFCU. The two competed for the same board seat, and although Hunter won, Delucca won him over with her straightforward vision to deliver financial inclusion for all, offer free financial counseling, help people break out of the payday lending cycle, and build a game-changing credit union culture.

NOFFCU does that today, in practice, through its financial inclusion department that reviews loans on a secondary level.

“When a loan is denied, we find out more about that member’s situation, offer financial counseling, and, ultimately, put that member in a loan that’s right for them,” Hunter says.

The results have been eye-opening, especially in collections.

NOFFCU strives to meet members where they are and find ways to serve, even during times of delinquency. When inflation, high rates, and skyrocketing insurance costs wallop borrowers, the credit union helps them re-examine their financial situation, consolidate debts, and identify other opportunities.

“We look at members’ loan profiles and try to find creative solutions,” Hunter says. “It’s a group effort, just like making a pot of gumbo.”

The credit union also participates in Beneficial State Foundation’s Underwriting for Racial Justice Pilot Program, one of the few credit unions that does so.

“We’ve done a lot of good work, but there’s a lot more to do,” Hunter says.

A pilot program aims to increase access to credit for people of color by bringing together multiple lenders to share data and practices as well as explore new underwriting practices. Learn more in “Equity In Lending Takes Center Stage For 2 Credit Unions.”

Through his Inclusiv network, Hunter has people with whom to share ideas and lean on while trying to bring about change. He hopes other credit unions embrace that cooperative stance and leverage shared resources to bring equity — and long-lasting, systemic change — to their communities.

For leaders interested in fostering diversity, equity, inclusion, belonging, and justice, Hunter advises taking a hard look at their environment.

“Are you happy with what you see?” he asks. “If not, what can you do about it? How can your organization bring justice to your community?”

Data from the National Association of Realtors shows the racial homeownership gap is at its widest point in a decade. Now is the time for credit unions to get back to basics, according to Hunter.

“This should be our call to action,” he says. “If we all take a stand, we can bring so much change across the country and the world. Let’s get out of our own way and be our own advocates.”

The post A Patchwork Path To Equity And Justice For All appeared first on CreditUnions.com.