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GreenMoney Journal - publishing since 1992
Fall 2010 issue
Socially Responsible Investing – Better Companies, Better Communities
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Permaculture Credit Union Establishes Itself in Financial Landscape
Nate Downey
One year after President/CEO Donald J. Sarich took the helm at New Mexico's newest credit union,
Permaculture Credit Union is growing strong. Income is up by 48.41%. And the PCU's loan portfolio
has tripled since Sarich started in March of 2003. Total loans hit the one million dollar mark last
March, and now the two million dollar mark already seems right around the corner.
"Hiring
Don was by far the best thing the board did while I was Chair," said outgoing board member Nate
Downey. "Just over a year ago, we were having real problems getting our loan program up and
running. The bottom line was that our regulators were no longer merely whispering about the
'options' we had in the event they decided to shut us down."
"It was not a pretty time,"
Downey said shaking his head. "But I guess grace does happen at least once in awhile. We thought
Don would be great for the PCU, but I don't think any of us dreamed we would hit one million
dollars in loans so soon." he said.
In an era in which most lending institutions find it
difficult to sustain significant growth, lately the PCU's growth has been off the charts.
Nationally, over the past year credit unions on average have seen their loan portfolios decrease by
0.40%. In New Mexico the situation has been more positive with loan portfolios increasing by one
percentage point. However, at the end of Sarich's eleventh full month on the job, total loans from
the previous year divided by the total loans for the current year shows an increase of over 146%.
Meanwhile, delinquencies at the PCU fall way below national and statewide averages.
Delinquent loan count for 3.15% of loan portfolios nationwide, while New Mexico credit unions
demonstrate a more healthy figure in the delinquent loan category, namely, 1.96%. Yet again, the
PCU is in a class by itself with only 0.18% of loans at the PCU being delinquent.
"One of
the best things about Don is his dedication to the credit union movement," said board chair Susan
Coulter. "He's always putting the members' needs first, calling it 'their' credit union and saying
the PCU's success is because of the members' dedication. While I agree we have a great membership,
without Don's energy and leadership our little movement to revolutionize the financial industry
would not be succeeding on this level."
Now in its fourth year, the PCU has 615 members
with $2,465,820.78 in savings deposits -quite an accomplishment considering the small variety of
services that the PCU is able to provide in its nascent stage of development. Although the PCU does
offer automatic paycheck deposit, the PCU does not yet offer traditional services that many people
expect from a bank or credit union such as checking accounts, ATM cards, or credit cards. However,
according to Sarich, by mid-summer the PCU will offer its own credit card complete with name and
logo. Checking accounts could come down the pike in the next year or two.
"We're young,"
Sarich said. "We just don't have the deep pockets that the big boys have when it comes to offering
a variety of financial services. So, we focus our energy on our ethical foundation, our
personalized, user-friendly service, and, of course, on providing competitive loan rates for our
members," he said.
"Our members care about the ecological and social fabrics of our
culture and how they are woven together, so initially they are attracted to our mission to promote
sustainable alternatives to conventional society. And once they see how competitive our rates are,
it's often just a matter of filling out the paperwork. In a very real way the Permaculture Credit
Union is a great idea that sells itself," Sarich said.
In addition to providing loans for
traditional needs, the PCU attempts to educate its members about ecological and socially
responsible alternatives, such as fuel-efficient cars, photovoltaic panels, passive solar heating,
and rainwater catchment systems. Part of this education process comes from incentives like the
"sustainability discount," which can often reduce a member's loan rate by a full percentage point.
"We can do the easy stuff like consolidate and reduce someone's credit card debt, but we're also
here to help when the eyes of the conventional lending officer glaze over," Sarich said.
Coulter reiterates that just over a year ago the future of the PCU was uncertain. "But, now,
we're here to stay. We've found our niche, and we're looking at a bright and prosperous future
-quietly leading the financial industry, and our society, toward sustainability," she said.
Article written by Nate Downey, Santa Fe Permaculture, Inc.
For more information call
505-424-4444 or visit- http://www.pcuonline.org
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