Pentagon FCU 'Sticks to Basics' in 2010, Pollack Says
The $13 billion Pentagon Federal Credit Union is looking at 2010 as another year to stay lean and increase income considering the nation's "credit crisis may not be finished," according to its president/CEO Frank Pollack.
"Losses may have peaked but we are being extra sensitive about paying attention to building income," said Pollack, noting the looming corporate expense and ongoing delinquency problems for CUs across the country.
Pollack, who spoke out this week on the "good news" the industry has been receiving as a result of the strident Congressional and public criticism of big bank card practices, said Pentagon will continue "our aggressive pricing" policies on certain loan categories but "you will see nothing fancy from us."
He was referring to Pentagon's 3.99% auto loan rate, singled out by media stories and Internet blogs as an example of CU practices favoring the consumer as compared to the higher bank rates and fees.
Pentagon, said Pollack, "does march to a different drummer" among its competitors but has no plans to switch gears in 2010. "We think unemployment will remain high at 9-10% and so we are being careful about sticking to the basics to cushion against the unforeseen," he said.