FBCU stable as other financial institutions struggle

Oct 28, 2008

Scott Holt, president of the Florida Baptist Credit Union, says the institution is stable, despite tough economic times. Photo by Joni B. Hannigan

Jacksonville (FBW)—While the financial world reels amid bank failures and rescue plans, the Florida Baptist Credit Union has remained above the fray as a healthy financial institution, according to its president, Scott Holt. The 22-year-old credit union is “stable in all areas,” he said.

Holt traces the health of the FBCU to its historically “very conservative” loan portfolio that results in very few delinquencies. In fact, for a time in September, the institution boasted zero delinquencies in home equity loans. A month later, only 1.5 percent of its total loans are “late,” he said, and the employees are “working those.”

“For several years regulators have advised us to make riskier loans,” Holt said. “Now we are far below the delinquency rate of our peer group.”

Holt also credits the experience of long-term employees as a factor in the credit union’s stability. Employees have amassed a total of 52 years of combined experience at FBCU.

Holt’s contribution to that total is only three months, although his relationship to the institution is long-standing.

In his almost 21 years as assistant to the accounting director and accounting director at the Florida Baptist Convention, he volunteered his accounting expertise at the FBCU on Supervisory and Nominating committees. Steve Baumgardner, director of the Business Service Division of the Florida Baptist Convention, said the FBCU Supervisory Committee “watches out for members’ interests by making sure the Board of Trustees and management are doing their jobs properly.”

Through Holt’s years with the Convention, the office of president of FBCU became vacant three times, and Holt said he would talk about applying for the position with his wife, Endia, but he remained on the sidelines during two of the vacancies. During the third, however, he officially applied for the job, and in July he moved from his fifth floor office in the Convention building, 25 yards across the Convention’s south parking lot to the Florida Baptist Credit Union.

“Scott’s intense interest in meeting the financial needs of Florida Baptists, his genuine and winsome personality and his expertise in financial matters will be great assets to the mission and vision of the FBCU,” Baumgardner said.

“I really had to decide if I could be a salesman and an accountant, because here I have to sell our services and promote the credit union,” Holt said. “As an accountant, I track where funds go, but here I also have to know about lending, and develop new products and find new customers. For instance, I am learning about things I cannot say or promise in lending.”

Holt hopes to promote the Florida Baptist Credit Union as a viable option to mega-banks at a time customers are yearning for a “personal touch,” he said. A Baptist credit union can also tailor loans to meet the unique needs of Baptist church members. Holt said FBCU will soon offer “ministry assistance loans” which will give an individual the option of borrowing money at reduced interest for one year to finance participation in a mission trip.

The FBCU combats the disadvantage of having only one branch by being a member of the Shared Branching Network of credit unions in the nation. A FBCU customer may do business at any one of 230 credit union locations in Florida, or at 3,400 locations nationwide.’

“We can be right around the corner from you even though we are in Jacksonville,” Holt said.

Also through another association, the Credit Union Service Organization (CUSO), Florida Baptist Credit Union is able to offer churches large loans for construction. Because of the size of the FBCU organization, loans are normally limited to $300-400,000, but cooperation with CUSO enables churches—considered businesses, legally—to make larger loans.

“We are excited that we may be in a new arena to serve churches with larger loan needs,” Holt said.

The 43-year-old new president considers enlisting new members in the credit union his “main goal.” To that end, he visits with church staffs and church groups to tell them “who we are and how we can serve them,” he said. Membership in FBCU is open to the employees and members, and their families, of any Southern Baptist agency, including churches.

“We are here to close the gap between your financial need and time,” he said. “You may not be able to spend $20,000 on a car today, but you can afford it. We help make that possible.”

Baumgardner echoes Holt’s enthusiasm for FBCU’s loan offerings: “While some financial institutions have significantly curtailed their lending, FBCU is still in the business of making loans to qualified members, and is eager to work with its members to satisfy their borrowing needs.”

Holt also is quick to point out that the Florida Baptist Credit Union tithes its income. Ten percent of its monthly net income goes to the Florida Baptist Convention to help fund new churches.

“Nobody likes to pay interest, but it’s easier when you know its being used for the glory of God,” he said.

For more information about the Florida Baptist Credit Union, call 800-749-3228, or go to www.fbcu.org.

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