Excellence in Lending Award Winners 2009

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1 Excellence in Lending Award Winners 2009 The Credit Union Excellence in Lending Award provides an opportunity for credit unions to share best practices and ideas, build networks, and recognize and celebrate lending excellence. Pictured are front row, from left: Dawn Wolfe, Rogue FCU, Medford, Ore.; Lashonda Moore, St. Louis (Mo.) Community CU; Rita Murphy and Pat Stewart, Mayo Employees FCU, Rochester, Minn.; Yvette Blauvelt, New Orleans Firemen's CU, Metairie, La.; and Carol Laemmerhirt, Erie FCU, Erie, Pa. Back row, from left: Lloyd Gill, CUNA Lending Council chairman and award presenter, City County CU, Fort Lauderdale, Fla.; Kira Orth, Mayo Employees FCU, Rochester, Minn.; Cami Crouchet, New Orleans Firemen's CU, Metairie, La.; Sandi Carangi, Erie (Pa.); and Dan Kaiser, award presenter, CUNA Mutual Group, Madison, Wis. (Photo provided by CUNA Mutual Group)

2 2009 Consumer Lending Excellence Award - Assets under $250M New Orleans Firemen's CU ($127 million in assets; 16,700 members) New Orleans Firemen s Credit Union s lending strategy propelled its loan business beyond expectations. Under the leadership of a new lending director, changes were made to address identified problems within the previous consumer lending structure. The result is the highest loan volume increase our credit union has seen in 75 years, setting New Orleans Firemen's CU on pace for a $10 million increase in its loan portfolio for A new loan pricing matrix provides loans to members unable to secure them elsewhere while realizing the highest loan yields than ever before. Members benefit from new and enhanced programs, including Lifeline Advance Loan, an alternative to the payday lending cycle, and Tuition Line of Credit, making education more affordable for their members. To say the lending strategy paid off is, indeed, an understatement.

3 2009 Consumer Lending Excellence Award - Assets $250M or greater Rogue Federal Credit Union ($415 million in assets; 44,683 members) Rogue FCU doesn't just tell members to keep what you've worked so hard for, it helps them be successful. Located in Southern Oregon, an area ranked second nationwide in unemployment, Rogue partnered with the local Home Builders Association and NewsWatch 12 to create Building Hope, a foreclosure prevention and assistance program to help families keep their homes through financial counseling. Rogue Solutions followed with a personalized approach to debt consolidation and restructuring. The results were more loans and fewer delinquencies. In one year, loan growth increased more than $12 million, share growth increased more than $5 million and the credit union added nearly 700 new members. By changing the culture to fit the times, Rogue met members' needs while enhancing its bottom line.

4 2009 Mortgage Lending Excellence Award - Assets $250M or greater Mayo Employees FCU ($350.4 million in assets; 37,729 members) Mayo Employees FCU grew its mortgage business by staying true to its 76-year sponsor the Mayo Foundation of Rochester, Minn. and the credit union credo of serving the underserved. In MEFCU's case, the underserved were resident physicians at the Mayo Clinic, who typically carry more than $150,000 in educational debt while earning a median salary of $45,700. MEFCU established the successful resident mortgage loan program, which provides discounted origination fees, 100% financing and credit without bias to No Score' and foreign resident physicians who otherwise would not qualify for a mortgage. Their overall results are staggering: A 28% increase in volume from 2007, leading to a recordbreaking 2008 with income from mortgages totaling $649,683. Income results eclipsed the budget by 30% even with discounted origination fees and rates.

5 2009 Low/Modest Means Award St. Louis Community CU ($183.5 million in assets; 36,147 members) St Louis Community CU understands the need to accept and manage additional risks without compromising the credit union's financial strength. This is a daunting responsibility when serving a low-income marketplace. St. Louis Community CU responded with products and services with its membership in mind a payday loan alternative, a credit builder loan, a credit check-up service and a second-chance checking account. As a result, the credit union's average loan portfolio for its Freedom payday loan alternative went from $254,000 in 2007 to $473,500 this year with a total loss percentage of 1.3% compared with 2.25% in As a trusted, viable financial resource, St. Louis Community CU is truly helping its members improve their standard of living through innovative programs and affordable products.

6 Business Lending Award Winner 2009 Erie Federal Credit Union ($259.1 million in assets; 32,729 members) Erie FCU made 2008 a pivotal year by initiating a strategic marketing plan to increase business lending and business relationship accounts. The comprehensive plan paid off. Erie FCU experienced 32% loan growth, increased average loan balances and a jump in loan-to-share ratio from 55% to 64%. The incorporation of a non-traditional marketing plan helped significantly, driving hundreds of potential members to the credit union Web site. Given the challenging economic times, Erie FCU is commended for effectively managing the risk associated with a new business lending approach while maintaining a sound, organized and conservative financial picture. A good product line coupled with valid competitive analysis positions Erie FCU for future success.