North Island Credit Union will live up to its ‘we’re a different kind of island’ slogan by offering monthly prize drawings, says COO Geri Dillingham. (photo/alandeckerphoto.com)

With the average San Diego County credit union roughly double the size of those in the rest of California, local CUs have a voracious appetite for deposits. The crowded financial services arena makes it difficult to win new converts, so you can bank on local credit unions treating their members like royalty in the coming months. Local credit unions are busy opening new branches, offering friendly rates on CDs, and even handing over the keys to new cars.

The 112,000 members of North Island Credit Union have been sent coupon books for chances to win monthly prize drawings, including a new Toyota Prius or Honda Civic hybrid. Other prizes include a trip to Cabo San Lucas, and the opportunity to throw out the first pitch at a Padres game. Financial incentives included in the Island Rewards coupon book are offers on auto loans, certificates, free financial analyst services and free checks.

“We say we’re a different kind of island, so how we interact with our members is the way we differentiate ourselves,” says Geri Dillingham, chief operating officer at North Island with $1.5 billion in shares. “The response has been phenomenal. We mailed Jan. 20 and we’ve already had 10 percent of the membership respond, so this is very successful in terms of reaching out to membership and having them open it and read it.”

Along with entering the sweepstakes, Dillingham hopes members will take a look at the CU’s incentives on financial services. “We’re hoping members will notice the CD offer (25 basis point bump over the regular rate) and the discount on auto loans during summer months, free investment services, and retirement reviews,” Dillingham explains. “It’s a fun way to return earnings to members and reintroduce them to our services.”

North Island also offers traditional savings services such as insurance, annuities, and mutual funds, college savings plans, IRAs and the like — but not stocks. Investment planning generates fees for the credit union, but with only 5 percent of more than 112,000 members using North Island for investing, much of the potential remains untapped.

“When a member comes to us for investments, it’s because they already trust us with insurance and savings,” says Dillingham. The North Island members who use the CU for investments have about $200 million under management.

“It’s a matter of awareness, too,” Dillingham adds. “We do measure cross sales, and the longer-term members who have both their loans and their savings with us are more likely to use us for investments.”

The rewards program coincides with several North Island branch openings, including Temecula on April 2; Eastlake Village Walk shopping center this summer; Rancho San Diego, late summer; and Imperial Beach by year’s end.

Psst. Know Any Prospective Members?

CEO Marla Shepard created a referral program in response to a First Future Credit Union member survey. (photo/alandeckerphoto.com)

Marla Shepard, CEO of First Future Credit Union, is creating a member referral program, since a recently completed survey found that 80 percent of First Future’s 50,000 members said they would recommend the credit union to others.

In the investment arena, First Future has an in-house department of financial counselors licensed through LPL, a nationwide broker. Shepard says 3.5 percent of members make investments at the CU, but that they counsel and do some planning with about 14 percent. “For those investments we do make, most are in annuities, mutual funds and life insurance,” Shepard says.

With more than $900 million in shares, First Future is stepping gingerly into the business loan space, with about $150 million in funding over the last three years. “We have a business service program with checking accounts, payroll processing and credit cards,” Shepard adds. “We want to do open lines of credit. We’re just starting.”

First Future also is adding to its branch network with a new office in Poway and a branch in Murrieta in September.

Partnering With Pros

CEO Jim McPheters leads California Coast Credit Union. (photo/alandeckerphoto.com)

California Coast Credit Union offers a wide range of services and generates fee income through its third party provider, Members Financial Services. These include IRAs, Roths, stocks, mutual funds, insurance, and annuities. “Just about anything you’d want,” says Jim McPheters, Cal Coast CEO.

The 50,000-member CU, serving mostly education professionals, has about $990 million in shares. McPheters says he’s keeping an eye on the performance of the housing market in light of greater than expected weakness in the subprime market, adding he’s “cognizant of it, but not concerned.

“We don’t do a lot of nontraditional type loans,” he says. “We’ve had one repossession in the 21 years I’ve been here.”

Financial 21 created three new products for customers who want to save, says CEO Gene Roberts. (photo/alandeckerphoto.com)

Financial 21 Credit Union offers CDs and IRAs, but for other investments uses Lance Pelky & Associates, a local investment counselor. “The arrangement gives our members an opportunity to invest, we have someplace to refer them to, and we get some fees,” says Gene Roberts, CEO of Financial 21, which has 12,000 members and $119 million in shares. “Our concern is that we have an option to offer when they come to us.”

On March 1, Financial 21 launched some new savings vehicles, including a five-month fixed, 10-month variable certificate of deposit with a $10,000 minimum. Financial 21 also is rolling out a liquid CD, with a $10,000 minimum, 12-month term and two withdrawals without penalty. A third option is a “high yield” checking account with a $25,000 minimum.

Whether taking the wheel of a savings vehicle or motor vehicle, credit union members — and their deposits — can expect a lot of attention from their credit unions in 2007.