DUBLIN, Ohio—One credit union believes loan participation programs are the best way to address the issue of small credit unions struggling with loan portfolio growth.
Ohio HealthCare Federal Credit Union has embarked on a new loan participation partnership with two other Ohio healthcare credit unions. The arrangement is beneficial to all involved, said OHCFCU CEO Bill Butler.
The program, in its pilot phase, solves the larger $81-million Ohio HealthCare’s liquidity problem while getting more loans onto the books of the two smaller shops, which range from $10-$20 million in assets.
Atrium Credit Union in Middletown and Mercy Health Partners FCU in Toledo are participating with OHCFCU.
“We are at TIP-chartered healthcare credit union in Ohio,” said Butler. “There are 10 healthcare credit unions in Ohio, including us, and we interact with them on a regular basis, and I thought—what if we all tried to collaborate on loans?”
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