LAS VEGAS — With balance sheets in good shape and key lenders having exited the market, credit unions have a unique opportunity now to take full advantage of loan opportunities, said Lee Butke, CEO of Corporate One FCU.

Addressing a session of the 31st annual National Directors' Convention winding up a week-long meeting here with a record 2,000 attendees, the Columbus, Ohio, CEO suggested that CUs start turning to new sources "other than deposits to take advantage of these opportunities" and that can include "your corporate or the FHLB," a reference to the Federal Home Loan Bank system, which recently has courted CU borrowings.

"Borrowing to help grow the balance sheet has not been a common practice, and I wanted to demonstrate some straight forward and practical ideas on how to effectively use borrowing to grow your organization and add value," said Butke. Borrowing not only can grow the CU "but can add additional earnings as it can provide a cost effective way to provide funds for your borrowers."

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