LIMA — When it comes to the credit union industry, local trends seem to mirror those in the state and in the country.
There have been mergers and growth among credit unions statewide, said Kimberly Stewart, Consumer Outreach Coordinator at the Ohio Credit Union League.
Merging can help members, said Angie Maynard, CEO of TopMark Federal Credit Union in Lima, and credit unions are non-profits that usually value customer service.
Credit union’s money is their member’s money, though they still have to be profitable, which may be where mergers come in.
“It helps their members, and it helps our members,” Maynard said of mergers, one of which TopMark completed two years ago with Lima Ohio Postal Credit Union.
“We’re always wanting to help everyone,” said Jessica Hughes, with business development at TopMark.
Mergers are sometimes advantageous for members, as they may offer them added services that they weren’t getting before the merger.
Though many local credit unions have experienced mergers within the past years and months, many also say that their growth has been more “organic.”
GROWING NATURALLY
Superior Federal Credit Union, which as of Thursday serves about 17 counties, has grown loans and deposits more than $30 million this year, said Kurt Neeper, vice president of business development at Superior.
That growth has been without mergers.
Though it seems to be a national trend that mergers are causing growth, Neeper said that national trend has not been a trend for Superior.
“While we’ve been able to grow through mergers and acquisitions, most of our growth has been organic,” he said. “(We’ve grown) from people coming here, and endorsements from family or friends.”
Quest Federal Credit Union, in Ada, has also had what CEO Matthew Jennings calls “organic growth.”
He says the growth is due to the “loyalty of our membership” and the fact they trust the advice the credit union gives and come back for other needs.
There’s been growth in the way Quest’s members use the credit union also, Jennings said. In the past few years its membership has grown 2.5 to 3 percent.
MERGERS
Though recent growth at the credit unions have been organic, two have also grown through mergers in the past and more recently.
Wednesday marked the completion of Superior’s fourth merger since 2005, Neeper said.
And Thursday made a planned expansion possible, as it was the first day of the union’s charter conversion, meaning it can begin serving more counties.
A 2009 merger helped cause growth for Quest, though it still considers itself a small credit union, with four locations.
Mergers have become more common with credit unions for a couple of reasons. The federal government seems to be a part of all of those reasons.
The government has increased regulations on credit unions, making it hard for small ones to survive, Neeper said, and the financial crisis in 2008 showed credit unions and financial institutions they could be “too big to fail.”
“(Credit unions) have increased consolidation because it’s clear if you’re of a certain size, the federal government would bail you out no matter what you did,” Neeper said.
And Neeper doesn’t think the merger trend will end any time soon.
“I think it’s going to rapidly expand,” he said. “I think there will continue to be far more consolidations and mergers in the financial sector.”
A PERSONAL TOUCH
Though some credit unions are focused on growth, they still value the personal touch credit unions have been known to offer.
“We continue to provide the same level of service and quality of products,” Neeper said. “We just do it in a little larger geographic area.”
Beacon Mutual Federal Credit Union, also in Lima, has one location, and though it wants to grow, it values staying small for its customers, said Cindy Freeland, the CEO and manager.
“We want to remain the small credit union we are as far as serving members,” she said. “Some bigger credit unions, people don’t see as credit unions because they’re so big.”
At Beacon Mutual, employees know every member by name and like to look at individual situations and the entire person rather than how people look on paper.
“Our goal is to help the individual,” Freeland said.
To do that, they ask questions about what put the person in that situation and look at their character.
“We still have the ability at credit unions to talk to people, meet people and see them face to face,” Freeland said. “They’re not just a number.”
Their money is the member’s money, and because TopMark is small, “every dollar is important,” TopMark’s Maynard said.
Heather Faulder of TopMark Federal Credit Union, on South Dixie Highway in Lima, waits on William Pachlhofer, of Cridersville. Mergers and growth have been positives for credit unions, which became known for their personal touch with customers.
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Heather Faulder of TopMark Federal Credit Union, on South Dixie Highway in Lima, waits on William Pachlhofer, of Cridersville. Mergers and growth have been positives for credit unions, which became known for their personal touch with customers.
Craig J. Orosz | The Lima News
By Danae King
dking@civitasmedia.com
Reach Danae King at 567-242-0511 or on Twitter @DanaeKing.