Based on the outlook of maturing loans and after a review of the marketplace, it was determined that loan growth would be a key objective in 2012. Although 2011 yielded $59 million in year-to-date loans and despite the fact that the credit union had never achieved a six-figure loan goal, we were confident that a $100,000,000 new loan goal was aggressive, but achievable.
It was clear that a $100,000,000 new loan wasn’t going to be realized without the buy-in of the staff. The first step in our program was to share the goal with all employees and make it clear that loans were the primary focus. To emphasize the challenge, we released a market-wide print and radio campaign telling the market that Day Air had $100,000,000 to lend out in 2012. Throughout the year, employees remained informed as to where they were in their goal and what the product focus was going to be. Once the staff was onboard, we set out to communicate with the membership. The primary focus was on acquiring new loans with members. As opposed to creating a handful of large campaigns, a series of highly targeted letters were created that focused on mortgage refinance, auto recapture and HELOC activation.
Indirect auto was also a large contributor to the loan growth success. The credit union focused on building (or rebuilding) relationships with key dealerships and strategically disconnecting with those that ate credit union resources but did not contribute cooperatively to the partnership. A process was also put into place to transition indirect borrowers to direct loans for their next vehicle through a targeted recapture program. Finally, a life stage sales model was put into place to help the front line staff conduct more meaningful conversations with members based on likely products associated with recent or upcoming events in the member’s life.
- $105,027,524 in new loans funded in 2012
- 77.76% loan growth (Year to Date) from 2011 – 2012
- 20.02% increase in total loan balances
- 29.72% increase in total vehicle balances
- 29.04% increase in total first mortgage balances
- 4.81% increase in total loan accounts with a 14.51% increase in average balance
This case was discussed in the CU Times