CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact

News

Home » The right turnaround
Management CU Rock Stars 2018

The right turnaround

Jennifer Borowy guided Buckeye State CU down the road to improvement.

September 27, 2018
No Comments
Jennifer Borowy

Before Jennifer Borowy became president/CEO of Akron, Ohio-based Buckeye State Credit Union in 2016, it had lost $3.5 million in three years and its net worth had dipped to 6%.

Since then, $79 million asset Buckeye State has increased its earnings by more than $1.2 million and improved capital to 8.45%.

“It was a rough road,” recalls Borowy, who has since left her position at the credit union.

Her turnaround strategy featured 7 a.m.-to-11 p.m. work days and included forming an engaged senior leadership team, communicating so changes were transparent, cutting expenses by reviewing contracts, selling the administration building, and closing one of five branches. It also meant eliminating indirect lending and focusing on organic lending. Ultimately, the credit union had to “do what’s right for members,” she says.

‘Everyone had to understand the changes that we needed to survive.’

“One of our problems was indirect lending,” Borowy explains. No one had “evaluated whether it worked. The $35 million indirect lending portfolio was yielding 0.67%, and we were borrowing money to fund it.”

Besides the lending strategies, her main focus was to ensure employees bought into the changes. “Communication was key,” Borowy says. “Everyone had to understand the changes that we needed to survive.”

CUNA News Podcast

Anatomy of a credit union turnaround with Jennifer Borowy

Borowy found a way to not only turn Buckeye State CU around, but to transform its culture.

Buckeye State’s loans-declined ratio had hit a whopping 50%. “We had stopped listening to members,” she says. “We said ‘no’ so often they stopped coming.”

To remedy this, she implemented a new training structure to improve employees’ conversations, so they focused on members’ needs.

Her team also centralized lending, underwriting, processing, and quality control for an easier loan process. It also conducted a social media campaign to win back members. A “Million Dollar Challenge”—launched in June 2016 “to save members a million dollars by Dec. 31”—booked $6 million more in loans than in 2015. Last year employees booked 200 more loans than the previous year—at a yield of 7.73%.

“We did the best we could, as fast as we could, with as much information as possible to make the best decisions,” she says.

Meet the 2018 Credit Union Rock Stars

KEYWORDS Credit Union Rock Stars

Post a comment to this article

Report Abusive Comment

Credit Union Magazine: Spring 2022

Spring 2022

Credit Union Magazine’s Spring 2022 edition profiles four Credit Union Heroes and examines CUNA's advocacy priorities, the advocacy army, and financial well-being for all.
Digital Edition •  Subscribe

Trending

  • FOM modernization bill passes House Financial Services Committee

  • House committee to mark up field of membership modernization bill

  • FOM modernization bill is free-market solution to address financial access

Tweets by CUNA_News

Polls

Are you ready for CECL?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2022 Credit Union National Association | ADA Compliance Notice & Legal
Email Us