At a time when some companies are skittish about paying outstored-up pension plans for longtime employees, Lending SolutionsInc. recently went in the other direction.

The Elgin, Ill.-based provider of lending center services andconsulting programs for financial institutions said it hasestablished a new employee stock ownership plan.

Introduced to employees on Jan. 11, the ESOP transfers 30%ownership to the employees of LSI through a defined contributionbenefit plan. The company, which employs more than 400 loanofficers, said it established the plan on Dec. 20, 1012.

“Transitioning to an ESOP model gives us the opportunity toreward many of our long-term employees for their commitment andhard work over the years, as well as attract new employees,” saidMark Johnson, chairman and principal stockholder of LSI.

LSI's ESOP will be administered by the company's ESOP committee,working in conjunction with a third-party trustee and a third-partyadministrator, the firm said. LSI said it engaged the services ofInnovative Shareholder Strategies throughout the development andintroduction of the ESOP.  Launched in 2012, ISS is afinancial advisory practice specializing in ESOP consultingservices.

“We're tremendously proud of what we've achieved over the pastseveral years at LSI,” said Lee Kolquist, LSI CEO. “Our employeeshave always taken great pride and ownership in their work, and now,with the ESOP, eligible employees will have the opportunity to earna tangible stake in the company to validate thatownership.” 

According to the National Center for Employee Ownership, thereare approximately 11,500 ESOPs in the U.S. covering nearly 14million participants, LSI said. The NCEO said companies with ESOPsgrow 2.3% to 2.4% faster than comparable non-ESOP companies asmeasured by sales, employment and productivity growth, according toLSI.

“An ESOP is a complicated transaction with a lot of movingparts,” Kolquist said. “Innovative Shareholder Strategies was thereevery step of the way, guiding us through the process withunparalleled commitment and expertise. The professionals from ISStook the time to understand our objectives and to structure atailored solution beneficial to LSI, its shareholders and itsemployees.”

LSI provides lending and member service to over 300 of NorthAmerica's credit unions, banks, and mortgage companies.

Last year marked several milestones for LSI, including taking in500,000 loan applications, the company said. The application camefrom the $1.1 billion Partners Federal Credit Union in Orlando, Fla.

The company said it also set records for total calls answered,indirect loans handled and overall transactionsprocessed. 

The company, founded by industry consultant Rex Johnson, said itcontinues to maintain a steady rate of growth each year. In July2012, it opened its second contact center in Naperville,Ill. 

“In 2012, we answered more phone calls and processed more loanapplications than ever,” said Kolquist said. “However, what we aremost proud of is the quality of service that we have been able toconsistently deliver. Helping our credit union clients builddeeper, long-term relationships with their members has been ourmission and continues to be what we strive for each day.”

As an enhancement to its online loan application, LSI alsolaunched a mobile-friendly application last year. The mobileapplication contains all the functionality of LSI's standardinternet application but is optimized for smart phones includingiPhones and all Android phones, the company said. The applicationfeatures automatic recognition of browser types–mobile versusstandard–and opens the appropriate application for the member.

At the time news of the mobile application was announced, DaveBrooke, LSI executive vice president, said the product builds onthe company's mission to provide to help its clients process moreloans.