Sign In To Keep Reading!
Need To Register?
Thank you for your interest in reading the fantastic content we have on CreditUnions.com! All users must log in to read, research, browse, and have fun on CreditUnions.com. It's free to create an account.
Learn What You're Missing
Upgrade Your Subscription
Back to CreditUnions.com
Read & Watch
Deposits & Payments
Operations & Technology
Search & Analyze
Find A Credit Union
Find A Credit Union Executive
Build A Peer Group
Strategy & Performance
Anatomy Of A Credit Union
Market Share Guides
Credit Union Directory
5 Tips To Survive Multiple Mergers
What Lurks In The Dark Web?
An Education In Online Banking Conversion
ACH Data Means More Lending For A NY Credi...
A Strategy To Market What Members Want
12 Ratios For Marketing Managers
It's Not Just A DC Road Race
Best Of Payments And Technology 2016
Best Of Mortgage 2016
Best Of Marketing 2016
Best Of Cooperative Strategy 2016
2017 Callahan Credit Union Directory
5 Ways To Better Understand Your Auto Portfolio
A Wake-Up Call In 2017?
State In The Spotlight: Pennsylvania
It's A Great Time To Be A Credit Union
State In The Spotlight: Texas
Sophisticated Financial Tools Offer Big Advantages For Smaller Credit Unions
Less Risk, More Reward
Tips For Financing Country Living
Industry Performance By The Numbers (3Q 2015)
Which credit union has the highest loan-to-share ratio?
Peer Group Performance and State of the States
New & Used Auto Loan Growth
Which credit union leads the nation in auto loan penetration?
Who are the Top 10 credit unions in new auto loan growth?
How geographically diverse was the loan origination growth in 2012?
Oct. 6, 2010
I read this prticle and was curious to see if the increased auto lending was doing much for their bottom line; only two credit unions had healthy ROAs and they (Benchmark and Kunia) were very small and NOT using indirect loan programs. the other credit union not using indirect appears to be buring through its capital rapidly and for other reason I suspect (look at their expense per employee).
While we have held our loan growth (65% autos) to only 40%, we have not used indirect, as our business model calls for a personal close, and agressive collections. Our target market is mid to low credit score members (our median score in the area is 566) and we have a weighted average loan rate of 10.7%. Our model works great, as we have a ROAA of 2.4% or so and rising. (Net worth also grew 25% annualized as of June.) Unless NCUA suceeds in forcing us to change our business model and only make loans to A and B tier borrowers (and be in competition with all the indirect lenders and banks, we will continue to exceed our goals and serve our members. (We ARE a low income cu and a CDCU.) I hope there IS room for more than one business model in credit unin land, as we won't survive otherwise.
5 Ways To Better Understand Your Auto Po...
Sophisticated Financial Tools Offer Big ...
Peer Group Performance and State of the ...
1001 Connecticut Ave. NW Suite 1001
Washington, DC 20036
P: 800-446-7453 F: 800-878-4712
© 2017 Callahan & Associates, Inc.
All rights reserved