Collaboration Offsets Industry Flux in California
Hockey icon Wayne Gretzky had the right strategy when it came to outwitting his opponents on the ice.
Gregg Stockdale, president/CEO of 1st Valley Credit Union in San Bernardino, Calif., pointed to Gretzky as he took a long, hard look at what solutions were percolating that would keep the $30 million CU up to speed.
Because of this juggling of responsibilities, the types of alliances that 1st Valley seeks are those that will free up time for staffers to focus on other areas, he noted. Stockdale said when he looked at a June report of California credit unions in the $5 million to $49 million range, the efficiency ratio was roughly 105%. To be profitable that percentage should be under 100%, he added.
To get there, the industry has had to control loan losses or increase income, Stockdale noticed. At 1st Valley, staff was cut to the minimum, then cut in half and even then, harder decisions were considered. But for smaller credit unions, if staff are let go, some things eventually fall by the wayside.