Tom Ries AVP, Director of Member Business Services Firefly Credit - - PowerPoint PPT Presentation

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 3rd 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?