When CEO Ron Kase joined Landmark Credit Union 39 years ago, heexpected it to grow, but he likely would not have wagered it wouldreach $2.2 billion by the time he retires in January.

“I do know we expected to provide service to our members in away that would continue to expand and grow the credit union,” herecalled.

As far as Kase is concerned, an organization to some degree hasto grow to cope with inflation ratcheting up everything from thecost of paper to heating and air conditioning.

“However,” he continued, “depending on how you define smallcredit unions, there are small credit unions that are largely doneby volunteers where the select employee group is still picking upsome portion or all of the daily expenses such as rent andelectricity. So some small credit unions may continue to thrivewithout growing their organization. To the extent a small creditunion serves a niche, and provides a service their members can’tget elsewhere, I think they can still be successful.”

If you hopped in a time machine and went back to August 1973when Kase arrived, you would have found a one-sponsor credit union,Rex 2 Credit Union, serving Rexnord Corp. Punch some more buttonsin your time machine to arrive in 1985, when the credit unionbecame Landmark Credit Union open to people working or living inthe greater Milwaukee area.

The greatest challenge in reaching $2.2 billion?

“There have been a lot of challenges,” Kase responded. “Thebiggest has always been the challenges provided by the politicaland economic system. From 1979 through 1982, political and economicevents dictated interest rates should be extremely high, and we hadto fight our way through that scenario. Today, political andeconomic events dictate interest rates should be extremely low andwe have to fight our way through that scenario.”

“We’ve had all kinds of ups and downs in between. We need tomake sure we have people on board who can handle not only today’sbusiness but can grow into the positions and jobs in the creditunion as they evolve, people who are smart enough to grow with thecompany. They also have to realize that what has gotten us to thislevel of success is sticking to our knitting, which means treatingmembers fairly and looking out for their economic well-being.”

After all, Kase figures, nobody can predict the future withabsolute precision, but “you’re paid to look ahead.” For example,when Landmark correctly expected a housing market crash, the creditunion sold most of its mortgage portfolio to Freddie Mac and FannieMae. Similarly, although the credit union had a robust businesslending operation, management decided condominium and retaildevelopment was overheated so Landmark shied away.

Landmark has also introduced programs tailored to shiftingeconomic patterns, for example efforts to help people strugglingwith subprime mortgages.

“Early on, we provided something that at the time was notavailable through agencies such as Fannie Mae and Freddie Mac,”Kase explained. “That was called a ‘Helper’ program, and it wasonly partially successful. We did enable some members to stay outof foreclosure. That has been taken over by programs the twoagencies came out with to allow refinancing at lower rates eventhough borrowers may not have equity in their homes.”

In the early 1990s, Landmark rolled out a first-time homebuyer’sprogram. The idea was to assist what Kase describes as good peoplewho needed assistance getting into a home. The credit union waivedsome closing costs for buyers who had not owned their own home inthe past three years. The program was very successful, Kasesaid.

Kase described what he considers the three legs of Landmark’sprogress–a roster of 250 SEGs, a mortgage program that has reached$1.3 billion and indirect lending that has ranked Landmark the topauto lender in southeast Wisconsin.

The numbers have also been boosted by the fact that during thepast three years Landmark has completed mergers with 10 creditunions and recently applied with federal and state regulators tobuy Hartford Savings Bank, a mutual savings bank.

“That’s making its way through the regulatory channels,” Kasesaid. “We hope the merger will take place at the end of this year.In most of the mergers people have known us for many, many years,they know how we do business and treat employees and know we aregoing to provide excellent service to their members. Hartford wasno different. I’ve known the two principals there for an extendedperiod of time.”

“Like most of the regional banks Hartford was affected by theeconomic climate of the past five or six years. They came to theconclusion that at their size, about $190 million, they probablywould not be successful over the long term. They knew we would takecare of their customers and their employees.”

Looking back over almost four decades at Landmark, Kase saidhe’s probably proudest of the fact the credit union has been ableto provide many family supporting jobs, with the number of thosepositions growing as the credit union has grown. He’s also pleasedLandmark has been able to help many people get started financiallyand overcome temporary economic troubles.

Kase became involved in financial affairs after serving in theArmy at Fort Ord and discovered he liked that aspect of thebusiness world and the people-focused aspect of credit unions.

He makes the best of his 30-minute commute to work by using theinbound trip to wrap his mind around the day’s schedule. Headinghome in the evening he loosens his tie and switches his thoughts todomestic affairs.

As he anticipates retirement, he looks forward to spending timewith his two children, who each have a boy and girl likely to keepa grandfather busy. Kase makes the best of Wisconsin winters as acurling enthusiast, and in summer he’s likely to head for a golfcourse. He is also a licensed pilot who enjoys flying smallairplanes. 

About Landmark Credit Union
Assets: $2.2 billion
Members: 195,000
Primary sponsor: Community Charter
Branches: 24
Capital-to-asset ratio: 7.82%
Loan portfolio: $1.7 billion
Employees: 489

About Ron Kase
Married
Two grown children
CEO since 1973