The first half of the name is one of the most important functions credit unions serve today—to provide loans.
This week, we look at the issue from a couple different angles.
What’s going on in Ohio? Last week, we profiled a $17M Ohio credit union that grew its real estate portfolio 35% since last June. This week we cover KEMBA Financial, which posted 28% growth in its “other loans” portfolio. Kemba’s retail lending manager, Derica VanScoy, attributes much of their success to improved technology.
While the worst is over, the economy is improving at a slower pace than expected. Many members still need help meeting their obligations for loans taken out when things were brighter. Bill Vogeny, SVP/CLO at Ent FCU discusses their “member solutions” department’s approach to modifications.
Finally, when is enough, enough already? In July, JP Morgan reported that it reduced its loan loss reserve by $1.5 billion; BofA decreased its reserve by 17% from first quarter 2010. On the other hand, credit unions for the most part are going in the other direction. Second quarter data shows a coverage ratio on the rise in 44 states and the District of Columbia.