Q&A: How Credit Unions Can Strategically Expand into Commercial Lending

Credit unions of all sizes are looking for ways to better serve their members, build long-term relationships, and stay competitive. Commercial lending is gaining traction as a strategic pathway to achieve these operational goals. In this Q&A feature, we speak with Patrick Gullatt, President & CEO of Barksdale Federal Credit Union (‘Barksdale FCU’ – $2.4 billion in assets), Migual Patterson, President & CEO of Lampco Federal Credit Union (‘Lampco FCU’ – $80 million in assets), and Richard Guillot, President & CEO of Business Alliance Financial Services (‘BAFS’), to discuss why commercial lending matters, keys to cultivating a successful program, and how credit unions of varying asset sizes can approach this emerging growth opportunity.

Q: Patrick, let’s start with you. Barksdale has been offering commercial lending for quite a while now. What made your credit union decide to launch the program?

Gullatt (Barksdale FCU): We began commercial lending in 2009 when we had $900 million in assets. Our commercial portfolio was $800,000 at that time, but we saw an opportunity to better serve our community and attract new members by offering small business loans. Since then, we have grown our commercial portfolio to $63.4 million and have increased assets to approximately $2.4 billion.