TAMPA, Fla. — In late 2004, Bay Gulf Credit Union stumbled on a market that has helped the financial institution connect with a tight-knit, fiercely loyal group: motorcycle riders.

The $211 million credit union, along with the Tampa Chapter of Credit Unions, started the Credit Union Cruise for Kids, which raises funds to benefit All Children's Hospital in St. Petersburg, Fla. Since the fundraiser's launch in 2004, $73,000 has been given to the hospital and other organizations that help children. The money is still being counted from the recent Cruise for Kids event, which took place March 18.

In the midst of working toward a good cause, Bay Gulf realized the motorcycle market had been a huge, untapped niche, said Sharmon Goins, vice president of marketing. The CU did its homework discovering that the Harley Davidson Corp. had its own financing entity, Harley Davidson Finance. Goins said the rates were “very high” and knew Bay Gulf could beat them. Over a two-year period, motorcycle financing for the CU went from $500,000 to just under $8 million. Bay Gulf now has as indirect lending program strictly for motorcycles.

“We're in the dealerships. We became involved in bike fests and expos,” Goins said, adding the CU was recently featured in Born to Ride magazine. “We've found that if we're able to finance their motorcycles, they come to us for other services.”

Besides carving a niche with motorcycle aficionados, Bay Gulf's ever-expanding branch network has helped its membership grow 14.8% since September 2004 to more than 26,000 members. The CU recently opened two branches growing its reach to 10 branches in eight counties on Florida's West coast. Over the past two years, Bay Gulf has carried out four field of membership expansions encompassing 16 zip codes. Goins said in 2004, the CU started mapping out where it wanted to be and discovered much of the area's development was heading north. Looking through the zip codes and the branches already located there, Bay Gulf sought out other areas that might be convenient for members.

“We still have quite a few branches that serve large SEGs and long-time members,” Goins said. “There were zip codes in the area that we felt we could serve better.”

While Bay Gulf serves more than 300 select employee groups–”some of them active and some not so active”–the CU, originally chartered in 1956 to serve federal employees, has shifted its focus to serving the community even though it doesn't have a community charter.

“We have the look and feel of a community-chartered credit union,” Goins explained.

Still, this year, the CU plans to build more relationships with small businesses. Bay Gulf recently partnered with Miramar, Fla.-based CU Business Capital, LLC, to offer members a line of business service and loan products. The program is scheduled to roll out April 1 with deposit services expected to debut July 1. Goins said the CU has researched rates in the area to “see how we can do it better” and plans to set up “meet and greets” and “lunch and learns” to further build alliances with the small business market. To help facilitate those relationships, Bay Gulf's business development department has grown from one person and an outside consultant to four full-time employees, one part-time staffer and a consultant. Bay Gulf staff also serve on several of the area's chambers of commerce. With all the strides the CU has made as of late, like many in the industry that rode the indirect lending wave, Bay Gulf is feeling the aftermath of that entry. In 2005, the CU started an “aggressive” program, but has since backed off.

“It's been really difficult to develop those relationships,” Goins said. “We've learned that it's not a good market to get a grasp on. We had very aggressive auto lending rates and we grew our portfolio but have since learned that it's just difficult to grow those relationships.”

Meanwhile, in its effort to appeal to more of the community at large, Bay Gulf is also reaching out to Tampa's growing Hispanic population. Goins said that initiative tops the CU's wish list for 2007. From hiring more bilingual employees to attending more workshops that will help the CU reach out to Hispanics, Goins is sure that once the trust is built, long-term relationships are apt to follow.

“They want services and they are very loyal,” said Goins, who is also president of the Tampa Chapter of Credit Unions. “If they walk into one of your branches and there's no one there to help or translate, you've probably lost them forever.”

Goins said because many Hispanics are family oriented, good service travels fast and entire families will come to the CU to get their financial needs met. To help cultivate relationships with not just Hispanic members, but all of Bay Gulf's membership, the CU implemented Ron Willingham's Integrity Systems program in 2004. The program aims to bring models, processes, and tools to provide practical solutions that increase the competence, confidence and commitment of sales and service organizations. “We live it, breathe it and study it,” Goins said. “It's not about selling but listening to what the members want and knowing how to add value.”

Bay Gulf has made itself more attractive to potential members including launching free bill pay and checking in 2005. The CU will continue to look at expanding to other zip codes and recently bought property adjacent to an existing branch from a shed owner who was looking to sell after 2005's hurricanes wiped out his business. Goins said the CU might add on sometime in 2008.

“We're moving and shaking all the time,” said Goins, who once served as a CEO of a small CU. “We're very strategic with where our resources go and we gauge closely where we want to grow.” –[email protected]