Credit Union Conversations

Mark and Jeff discuss Jeff's background and the mission of River City FCU. Jeff explains the value of CDFI status that credit unions can access. Jeff and Mark have a lengthy discussion about the value of credit unions of all sizes and the purpose credit unions have in today's economy, along with ideas on how to maintain the number of credit unions in the United States.

IN THIS EPISODE:

• [0:48] Mark describes his business goals
• [2:53] Jeff shares his background and how his credit union serves the Hispanic community of San Antonio, TX
• [7:40] Jeff discusses the advantages of serving the Hispanic community
• [11:24] Members need to understand that a credit union that is insured by the NUCA is safe, and their money is protected 
• [12:59] Discussion on small credit unions and the importance they have in the marketplace for minority neighborhoods and how some larger credit unions have left the minority communities behind
• [20:55] Mark and Jeff discuss succession planning when a CEO retires
• [25:01] Jeff describes what it is like regarding companies approaching him who want to merge and what he would do to grow the number of small credit unions

KEY TAKEAWAYS: 

• River City FCU serves the Hispanic community in San Antonio, TX in many ways. One important service is to provide lending, which helps a person establish themselves in the United States and is also better for the economy because they don’t require government assistance.
• Credit unions need to adapt to the ethnic communities in their area by understanding the needs and goals of the people and offering services to meet those goals. One size does not fit all. 
• If a large credit union acquires a small credit union and closes its doors, it damages the entire premise of a credit union helping the community they are in. 

RESOURCE LINKS

Mark Ritter Website

Mark Ritter LinkedIn

River City Credit Union Website

Jeff Ivey’s Phone Number: 210-244-2545

BIOGRAPHY: 

Jeff Ivey is the current CEO of River City FCU in San Antonio, TX. River City is a CDFI-designated institution serving consumers since 1936. Jeff has also been a board member of Inclusive. Previous to his current position, Jeff helped credit unions with strategic planning and CDFI opportunities.

Craig and Mark talk about the old days of commercial lending in credit unions and how the dynamics between CUSO and CU’s have changed over the years. They also review the best practices in utilizing third parties to assist your lending operations. 

IN THIS EPISODE:

• [0:24] Mark discusses what MBFS does and how it can assist credit unions.
• [2:17] Craig describes his background and professional history. 
• [3:28] Discussion of the history of CUSOs and how they have developed over the years.
• [6:04] Credit Unions require specialized guidance across various domains, relying on individuals who excel in specific areas rather than expecting one person to have expertise in all areas. 
• [8:20] Benefits of having relationship managers and problems that arise when you don’t. 
• [11:13] The advantage of third-party oversight who goes in and out when needed is that they can assist a credit union better and faster in reaching goals.
• [13:57] Craig shares the history of guiding credit unions and members through difficult economic years to the advantage of both parties and how annual reviews can prevent issues. 
• [19:36] How a CUSO builds scale and neutrality, why examining policies once in a while is helpful and reaching out for non-judgmental help is wise.

KEY TAKEAWAYS: 

• CUSOs are specialized and have experts in many different areas that can speak specifically to originations, credit, closing of loans, portfolio management, SBA loans, etc., to ensure credit union partners receive the expertise necessary for the specific portion of their credit union that needs the assistance.
• It's hard to build relationships, but if you have worked with a borrower frequently, you know they will bring you a quality loan and have the financial wherewithal to back up their requests. If it's an SBA loan, you know they understand the intricacies of the paperwork involved. 
• Don't be embarrassed if you need some temporary help. Loans can go sideways. There is help available, and it is nonjudgmental. 

RESOURCE LINKS

Mark Ritter Website

Mark Ritter LinkedIn

BIOGRAPHY: 

Craig Page is the Chief Revenue Officer at MBFS. He joined MBFS after a long career of successfully leading CUSOs and as an executive in commercial real estate financing.

Where has the time gone? Mark and Jeff look back at what they said a year ago to see how accurate their predictions were. They also take a look at how 2023 played out, both good and bad and what CUs should be doing to plan for the future.

IN THIS EPISODE:

• [1:40] Jeff shares his duties and responsibilities at MBFS. 
• [2:00] Mark and Jeff discuss how things shifted in 2023. The hope is things will stabilize in 2024, but most likely will not improve. 
• [5:55] Discussion regarding credit quality and dealing with delinquency rising into 2024 if credit unions don’t take a proactive approach. 
• [11:06] SBA loans will benefit credit unions. Credit unions should become familiar with these government-backed loans even though they are somewhat more time-consuming. 
• [13:53] Discussion about how a credit union deals with higher interest rates impacting profitability. 
• [17:01] What does the future hold in 2024, and why planning and communication are essential. 

KEY TAKEAWAYS: 

• Planning for the possible ups and downs in the foreseeable future is critical. Communication with staff, members, and clients is essential to the planning for 2024. 
• Good credit quality is necessary to maintain successful lending. However,  long before it becomes an issue that is difficult to deal with, delinquency is part of the process and should be addressed. Again, communication is key.
• Loans enjoying a low interest rate will be coming due, and refinancing those loans will create a hardship for the borrower. Higher interest rates have already impacted the housing market.

RESOURCE LINKS

Mark Ritter Website

Mark Ritter LinkedIn

BIOGRAPHY: 

Jeff Lyons is the COO of MBFS. In his role, he currently oversees the credit, loan originations, and SBA loan functions. Jeff has a long career in banking and a small business owner. 

How do we REALLY do as an industry? In today's solo episode, Mark looks at the principles of the credit union industry and grades each area to see where we excel and where we can improve.

IN THIS EPISODE:

• [01:19] Mark will evaluate how credit unions are doing. 
• [03:43] Voluntary and open membership gets an A+. 
• [06:18] Democratic member control gets a D. 
• [09:37] Member economic participation gets an A. 
• [12:52] Autonomy and independence get a B. 
• [16:14] Education, training, and information get an A+. 
• [18:09] Cooperation among cooperatives get B+. 
• [21:40] Concern for the community gets an Incomplete. 
• [24:34] Diversity, equity and inclusion get a B-.

KEY TAKEAWAYS: 

• In the past, you had to be an employee of a particular business to join their credit union. Today there is open membership which allows for competition and better options.
• Outside influences influence a credit union. Previously, a car loan was obtained from your local credit union. Now the dealership does the loan.
• The cooperation between credit unions and other organizations like MBFS is a positive for the industry.

RESOURCE LINKS

Mark Ritter Website

After talking about John's background in the mortgage business, Mark and John talk about the boom times over the last few years and low-interest cycles. John talks about the current regulatory climate today and what he expects the mortgage market to look like over the next few years.

IN THIS EPISODE:

• [2:22] John describes how First Heritage operates and his professional background
• [5:52] John explains how he evaluates and reacts to the ups and downs of interest rates
• [9:19] What makes a credit union successful in the mortgage business as opposed to those that are not
• [12:45] John discusses government loans and how interest rates during the pandemic have affected the housing market
• [17:18] John talks about the reasons that apartment and condo construction is up, the shortage of new homes and the amount of down payment required to purchase
• [21:54] John discusses retaining mortgages, selling the mortgages, and liquidity solutions overall for credit unions 
• [25:22] John gives his short and long-term mortgage predictions 

KEY TAKEAWAYS: 

• First Heritage provides services and skill sets unavailable within most credit unions. 
• There has been a housing recession since June of 2022. Home prices increased in value at a steep rate, and mortgage rates followed, resulting in a problem with the housing cycle and a lack of inventory. 
• The average down payment required to purchase a home is $60,000.
• FHA, VA, and USDA can assist with lower down payments, making it possible for first-time home buyers to purchase. 

RESOURCE LINKS:

Mark Ritter Website

MBFS - Website

Mark Ritter - LinkedIn

First Heritage - Website

John Giordano - Email

BIOGRAPHY:

John Giordano is a longtime mortgage industry veteran and is currently the CEO of First Heritage Mortgage Services. First Heritage assists credit unions nationwide with all things residential mortgages.

Joining Mark today is one of his favorite people in the credit union space along with being the most inspirational. Alisha Martin's journey is one of resilience and perseverance. Today, Alisha runs the business development efforts at Suncoast and Mark and Alisha talk about what works and what doesn't in today's marketplace to acquire new members.

IN THIS EPISODE:

• [01:54] Alisha introduces herself and shares her background and work story. 
• [5:19] Alisha explains what Suncoast does and how they are customer-friendly.
• [9:09] Alisha describes her role as Vice President of Development for Suncoast Credit Union. 
• [13:00] Mark asks Alisha to share a personal story that might have been devastating; however, Alisha has determination and overcomes. 
• [22:46] Alisha discusses the importance of aligning yourself with individuals you want to work with. 
• [28:09] Alisha shares her approach to her position as Vice President of Development for Suncoast Credit Union.
• [32:57] Alisha admits that she is shy and tells how she finds balance in her position. 

KEY TAKEAWAYS: 

• Suncoast is the largest credit union in Florida, having just crossed 14.4 billion in deposits. 
• Suncoast Credit Union is customer-friendly and tries to do whatever it takes to work with its members.
• When life takes you in a direction you never saw coming and wouldn’t wish on anyone, attitude, determination and inner strength can turn it around for the better.

RESOURCE LINKS:

Mark Ritter Website

MBFS - Website

Mark Ritter - LinkedIn

Alisha Martin - Website

Alisha Martin - Email

BIOGRAPHY: 



Alisha has lived in Lakeland for the last 20 years. 15 of those years have been focused on banking and commercial real estate. With degrees in Business Administration, Business Management, and International Business, she has originated, syndicated, and serviced commercial loans with credit unions nationwide. 

As the Vice President of Development for Suncoast Credit Union, she is focused on growth opportunities and relationships in the surrounding areas in Central Florida. 

Deposits. Everyone is looking for them, and no one seems to have the magic bullet---except John Ballantyne. Mark and John discuss the benefits of a commercial deposit focus and strategies to succeed in this line of business. 

IN THIS EPISODE:

• [0:44] Mark explains what today’s episode is about. 
• [2:12] John discusses his background and how he became CEO of Tru Treasury, and he talks about being a Blackhawk helicopter aviator. 
• [4:43] John goes into the details of starting Tru Treasury during Covid.  
• [8:59] Mark and John discuss why knowing which core system is used is important. 
• [13:58] John and Mark reflect on how in 1998, the rules changed to permit credit unions to engage with businesses and what makes a credit union successful in meeting the needs of a business member. 
• [20:17] John says credit unions are about people helping people and how if you have the right services, the deposits will follow.
• [27:03] John advises credit union executives on the best opportunities over the next few years and taking advantage of low-hanging fruit.

KEY TAKEAWAYS: 

• [4:51] John describes how he had time to figure out the treasury management services and be a third-party provider to credit unions.
• [9:16] John discusses why you need to know the core system the credit union is using.
• [15:29] John describes what makes a credit union successful when serving the complete business member.

RESOURCE LINKS:

Mark Ritter Website

MBFS - Website

Mark Ritter - LinkedIn

Tru Treasury - Website

John Ballantyne - Tru Treasury LinkedIn

BIOGRAPHY: 

John Ballantyne has been the CEO of Tru Treasury since its founding. After a distinguished career in the US Army, John spent several years working in the treasury management area for a large bank and owning his own financial services firm.

If you like college football talk sprinkled in with your credit union talk, this is the episode for you. Mark and Andy catch up on Penn State football before a deep dive into how LoanStar helps credit unions and the current lending/regulatory environment.

IN THIS EPISODE:

• [02:32] Andrew shares his background before starting Lone Star Technologies. 
• [5:18] Andrew explains what Lone Star does. 
• [8:14] Mark and Andrew talk about Penn State football. 
• [10:26] Andrew discusses what surprised him about working with credit unions. 
• [13:39] Andrew explains how he flips around the conversation with a credit union to include what kind of portfolio they are looking for. 
• [19:53] Andrew discusses the diversity and expertise his firm brings to the table. 
• [23:45] Andrew talks about his business during the pandemic. 
• [28:29] Andrew predicts opportunities that could evolve in the future. 

KEY TAKEAWAYS: 

• [6:14] Lone Star Technologies partners with credit unions to provide a transparent product everyone understands. 
• [16:17] Andrew describes what sets people in the merchant lending business apart to make them more successful than some peers.
• [19:53] Andrew discusses the diversity and expertise Lone Star Technologies brings to the table

RESOURCE LINKS:

Mark Ritter Website

MBFS - Website

Mark Ritter - LinkedIn

Lone Star Technologies - Website

Andrew Turner - Website

BIOGRAPHY: 

Andy Turner has been the CEO of LoanStar Technologies for the past seven years. LoanStar works with credit unions and small businesses to bring merchant financing to lenders nationwide. Prior to founding LoanStar, Andy was an executive for financial services software companies.

Your portfolio is clean now, and "everyone is paying." Good loans sometimes go bad, and it will undoubtedly happen to your portfolio at some point. Craig and Mark talk about the history lessons of the Great Recession and how to tackle your portfolio in the future when bumps in the road happen.

IN THIS EPISODE:

• [02:58] Craig shares his background and history working in the financial industry.
• [04:57] Craig reflects on the recession when they had many coastal properties and being aware of the warning signs.
• [07:03] During the recession, there was a lack of awareness that the market wouldn’t bounce back in a few months.
• [11:02] Many people feel that real estate only goes up, and Craig also points out that commercial property still has many vacancies.
• [15:12] Craig shares his feelings on commercial real estate, and his biggest concern is office space.
• [17:47] The red flags of not paying property taxes and deferred maintenance.
• [21:07] Craig explains how he would approach delinquency with a commercial property.

KEY TAKEAWAYS: 

• During the recession, borrowers were unwilling to admit they were having problems. When visiting with a borrower about a delinquency, make sure you know the laws governing the situation.
• Lenders must be proactive in annual reviews to ensure all is well with their properties and borrowers.
• Three red flags that a property owner may be in trouble are them not paying their property taxes, property insurance and deferred maintenance.

RESOURCE LINKS:

Mark Ritter Website

MBFS - Website

Mark Ritter - LinkedIn

Craig Page - LinkedIn

BIOGRAPHY: 

Craig Page is the Chief Revenue Officer at MBFS. After a long career as the CEO of two business lending CUSOs, Craig joined MBFS to lead the national loan originations at the CUSO, along with helping guide the strategic direction of the organization.

Let's talk about some of the great things credit unions do every day! The CrossState Foundation executes the playbook on many of the wonderful initiatives for our industry. Sue and Mark talk about what goes on behind the scenes carrying out this crucial mission of credit unions.

IN THIS EPISODE:

• [02:46] Sue shares her journey to her current position at the CrossState Foundation
• [05:27] Sue reflects on her surprise when starting her job. She learned how credit unions nationwide work together
• [08:04] Sue explains how her foundation focuses on promoting financial credit union certification, reality fairs and financial wellness workshops
• [10:49] Sue talks about the National Credit Union Foundation hosting what is called prom night 
• [12:24] Sue shares information regarding CU Kind Day
• [15:34] Younger adults are helping propel focus on serving the community 
• [17:43] Sue explains how Financial Reality Fairs work
• [23:36] Sue gives an example of a teenager who had been to a Reality Fair
• [27:06] Sue encourages listeners to participate in programs that promote education and their communities

KEY TAKEAWAYS: 

• Many people do not know how Credit Unions are committed to helping people in the community 
• Financial Reality Fairs are beneficial to high schoolers by assisting them to plan and stay on a budget,
• The National Credit Union Foundation promotes prom night, providing gowns for girls who otherwise could not afford them.

RESOURCE LINKS:

Mark Ritter Website

CrossStates - Website

BIOGRAPHY: 

Sue Ward-Diorio is the current Executive director of the CrossState Foundation. CrossState Credit Union Association is the trade association for all Pennsylvania and New Jersey credit unions. Sue joined the credit union industry in 2022 after a long career in non-profits in central PA.