As indicated in the name, this is a church based CU that has operated for nearly 25 years. They have low income, low expenses and have a very healthy balance sheet with lots of assets in comparison to the members savings deposits. In the past couple of years to increase their membership, they opened their bond to the community.
The manager, Seth and the board chairman, Sylvanus both talked about the challenges they face and the opportunities they have in their community. They identified their delinquency rate as high but couldn’t put a real number or estimate the percentage. From their 2011 financials (last available) it was over 30%. They had taken the CUA auditor’s advice and written off the loans that were more than 12 months old. They felt that with their open bond and the hiring of a marketing manager, Eric, they could make gains in their membership and the savings deposits. Eric had brought at least 30 new members to the CU since his hiring in Oct 2012. He goes out to gather savings as well as recruiting new members. There are two markets in the neighbourhood. These would have traders and sellers that have money but the CU is too far away to easily get to the CU Office. The total membership is under 1000 members
Tomorrow we will come back and are promised that the minutes of the board meetings and committee meetings will be brought by the board secretary. What was filed in the branch was mostly from 2011 and were not all there.
There seems to be some underlying issues with the CU. The manager was eager to talk and the board chair was less eager. Tomorrow will tell if we can help but we need more details than we got today.