North Island’s August Performance Shows a Continuing Turnaround

An update from the West Coast brings good news and inspiration for all credit unions.


It’s not always easy to see opportunities during difficult times. At Callahan, we strive to shed light on the positive strides credit unions and their leaders are taking. And we hope reading about fellow institutions’ positive performances will be the inspiration you need to keep on keepin’ on. In that spirit, I’d like to provide an update on North Island Credit Union. We’ve written about this credit union in the past few months (see Chip Filson’s North Island is Back in Black and Brooke Stoddard’s Interview with John Tippets, CEO of North Island Credit Union).

According to Tippets, North Island Credit Union ($1,4B, San Diego, CA) has its fair share of headwinds and challenges. Area unemployment remains high and housing prices are only modestly improving. Consumers are more cautious about debt, which impacts outstanding loans, and historically low interest rates mean loans the credit union does capture produce less income than it would like. 

Despite these challenges, the credit union is consistently progressing forward. Here are just a few notable examples:

  • In the last three days of August, the credit union closed more than 30 auto loans.
  • Delinquencies are steadily declining (a significant step in the credit union’s recovery).
  • The credit union is restructuring fees to produce new steady income or encourage members to change behavior in ways that reduce costs.
  • Recent vendor negotiations have reduced annual operating expenses by approximately $1.5 million.
  • The credit union received an unqualified and positive audit for its last fiscal year