Credit Union Insights
When it comes to the credit union industry, I never cease to be inspired by the many people I meet who are committed to making their organizations and communities stronger and more sustaining.
In addition to enhancing income and capital, a Sale/Leaseback transaction provides a “win-win” by enabling CUSO investors to achieve certain tax benefits that are unavailable to credit unions.
Silicon Valley Bank (and others), inflation, fed interest rates and future job uncertainty are all fueling concerns about and within the banking industry. Yet, in the face of all this uncertainty, credit unions and community banks are still expanding their branch networks. Why? And are they going about it in the right way?
Nearly every firm we know has — or is in the process — of evolving its workplaces in order to recruit and retain key talent and grow their business. See what one of the world’s leading consulting firms has to say on the matter.
A lot of smart people go deep to deliver powerful information and insights that can benefit your business. And the best leaders are those who carve out the time to find, consider and, if and when appropriate, employ what they’ve learned.
For all its angst, the pandemic has been a catalyst for change throughout the credit union industry. CU’s of all size are embracing innovation and re-considering everything … especially when it comes to design and purpose of their branches.
While considering growth into new markets, credit unions should keep two things in mind: One, even nearby, expansion costs can differ wildly. And two, rigidity in expansion planning – while prudent – can also be costly.
Expanding a real estate portfolio is a heavy lift for any credit union. Succeeding with an expansion initiative – and with your Board of Directors – requires some important and un-relenting disciplines.
In the race to anticipate the future and stay ahead of the competition, it’s important to recognize that the “next shiny thing” is not really what your members want most. What they want is satisfaction.
In the face of so much uncertainty, the key to future growth – if not survival — for many credit unions is through mergers and acquisitions. Often times, the ultimate success of am M&A transaction is based on the true value of the seller’s real estate portfolio – and this is where assessment and due diligence isn’t always what it should be.
The sticker shock rise in construction costs has many credit unions pulling back on their current project pipeline. While that makes sense, it doesn’t mean you have to suspend your overall growth plans.
Trying to make up for lost time (and commissions), the real estate industry is eager to have you make deals. After all, what could go wrong?