LendKey Research:

Loan Participation


Loan to Share

Small credit unions and community banks face the difficult task of generating loan volume with limited resources and budget. There are, however, other ways to grow besides organically. This study shows how a small, $23 million credit union in Hawaii, used loan participations to nearly triple their loan-to-share in just a few years.

The Situation

In April of 2014, HONEA Federal Credit Union CEO, Fred Dalit, was told by the NCUA that they were concerned about the institution’s declining income. A closed field of membership made it difficult for HONEA to generate much loan volume. Traditionally, HONEA’s members were savers with great credit. Offering low rates and attractive terms was not enough to increase loan volume organically. It also did not help that a $10 billion credit union had a branch located nearby.

Loan Participation Report

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