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

The $211 million credit union, along with the Tampa Chapter ofCredit Unions, started the Credit Union Cruise for Kids, whichraises funds to benefit All Children's Hospital in St. Petersburg,Fla. Since the fundraiser's launch in 2004, $73,000 has been givento the hospital and other organizations that help children. Themoney 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 realizedthe motorcycle market had been a huge, untapped niche, said SharmonGoins, vice president of marketing. The CU did its homeworkdiscovering that the Harley Davidson Corp. had its own financingentity, Harley Davidson Finance. Goins said the rates were “veryhigh” and knew Bay Gulf could beat them. Over a two-year period,motorcycle financing for the CU went from $500,000 to just under $8million. Bay Gulf now has as indirect lending program strictly formotorcycles.

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

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

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

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

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

Still, this year, the CU plans to build more relationships withsmall businesses. Bay Gulf recently partnered with Miramar,Fla.-based CU Business Capital, LLC, to offer members a line ofbusiness service and loan products. The program is scheduled toroll out April 1 with deposit services expected to debut July 1.Goins said the CU has researched rates in the area to “see how wecan do it better” and plans to set up “meet and greets” and “lunchand learns” to further build alliances with the small businessmarket. To help facilitate those relationships, Bay Gulf's businessdevelopment department has grown from one person and an outsideconsultant to four full-time employees, one part-time staffer and aconsultant. Bay Gulf staff also serve on several of the area'schambers of commerce. With all the strides the CU has made as oflate, like many in the industry that rode the indirect lendingwave, Bay Gulf is feeling the aftermath of that entry. In 2005, theCU 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 agrasp on. We had very aggressive auto lending rates and we grew ourportfolio but have since learned that it's just difficult to growthose relationships.”

Meanwhile, in its effort to appeal to more of the community atlarge, Bay Gulf is also reaching out to Tampa's growing Hispanicpopulation. Goins said that initiative tops the CU's wish list for2007. From hiring more bilingual employees to attending moreworkshops that will help the CU reach out to Hispanics, Goins issure that once the trust is built, long-term relationships are aptto follow.

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

Goins said because many Hispanics are family oriented, goodservice travels fast and entire families will come to the CU to gettheir financial needs met. To help cultivate relationships with notjust Hispanic members, but all of Bay Gulf's membership, the CUimplemented Ron Willingham's Integrity Systems program in 2004. Theprogram aims to bring models, processes, and tools to providepractical solutions that increase the competence, confidence andcommitment of sales and service organizations. “We live it, breatheit and study it,” Goins said. “It's not about selling but listeningto what the members want and knowing how to add value.”

Bay Gulf has made itself more attractive to potential membersincluding launching free bill pay and checking in 2005. The CU willcontinue to look at expanding to other zip codes and recentlybought property adjacent to an existing branch from a shed ownerwho was looking to sell after 2005's hurricanes wiped out hisbusiness. Goins said the CU might add on sometime in 2008.

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