Tom Ries AVP, Director of Member Business Services Firefly Credit Union, Burnsville, MN
Firefly Credit Union • $1.1 B asset credit union • $70MM in committed MBL • 85% self originated; 15% participation purchased • MBS started in 2000 • MBS Reorganized in 2008
History • MBL started in 2000; perfect example of what not to do! • 2006 identified significant problems with portfolio • 2007 started process of cleaning up portfolio • 2008-20012 Reduced portfolio form $60 MM to less than $28MM Hired new staff Rewrote policies and procedures • 2013-Present • Started to actively seek lending opportunities • YTD originations $20MM; fee income $160k
Products Commercial Real Estate • Construction Loans • SBA Lending (504, 7a, Express) • Investment Property • Term Financing • Lines of Credit (Operating lines, Receivables and Inventory) • Vehicle Loans • Unsecured Loans • Business Visa •
Present Staff Director/Credit Officer • Credit Analyst (2) • Business Service Representatives (2) • Commercial loan officers (2) • Future plans • 1-2 Commercial loan officers Jr. Analyst Support Person Credit Officer??
Where to Start Review Reg 723 and all of the recent changes • Determine Board of Directors risk tolerance • Create Written Business Plan • Establish Policies and Procedures • Underwriting guidelines Determine Staffing needs • What products and services to offer • Loan Concentrations • Purchase participation loans or not •
Things to Consider Appraisal Policy • Environmental Policy • Independent 3 rd Party Audits • Portfolio Management; collection procedures • Pricing Matrix • Loan risk rating process • Loan approval authorities • Loan Management software • Doc prep software • Tickler Monitoring system •
Questions?
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