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Greylock Grows “Against the Wind” of Recession04:39PM / Friday, March 20, 2009
Record Growth, #1 National Ranking, Reflects 1930s Heritage
PITTSFIELD, Mass. – Greylock Federal released its 2008 financial results showing record growth and strong earnings. Greylock also confirmed plans for ongoing expansion in 2009, and celebrated its continued status as the #1 credit union in the USA for total value provided to its members. President Angelo Stracuzzi acknowledged that the positive results might seem unexpected given the continued crisis in global and national financial markets.
“It may be surprising to some people that Greylock keeps growing and succeeding while many other financial services providers are pulling back, but historically, credit unions are at their best when financial pressures are worst,” said Stracuzzi. “Our credit union and many others in the country were founded in the 1930s during the Great Depression. The cooperative model – which relies on local depositors pooling money to make local loans – is well suited to tough times. When the chips are down, you want to count on your neighbors, not some faceless investors on Wall Street.”
Greylock passed key milestones in nearly every area including Membership growth, asset size, loan and deposit volume, and earnings, ending the year with:
65,680 Member/ Owners
$1.127 billion in assets
$930 million in total loans
$908 million in total deposits
$6.25 million in earnings
“We hear every day about the loss of consumer confidence in the U.S.,” Stracuzzi said. “Greylock’s story is very different. When you see $115 million in deposit growth, $140 million in loan growth, and 3,000 in Membership growth, you can tell that the people of Berkshire County have a great deal of confidence in this credit union. Our continued lending growth shows our confidence in Berkshire County.”
Stracuzzi said that Greylock’s local lending model grows even more appealing as the global financial climate raises concerns. “I think now more than ever, people want the comfort of a face-to-face conversation when they are concerned about financial matters,” Stracuzzi explained. “They want a local lender who will look them in the eye, explain the loan in plain English, and stand by them during hard times. They want to see a long track record of prudent, conservative management of depositors’ money and careful expense control. They want a financial institution that treats its employees with dignity and respect. And they want to see strong support for community needs, in good times and in bad. Those are all the things that Greylock represents.”
Greylock also saw solid growth in its insurance and investment divisions, with Greylock Insurance Agency reaching $15 million in premiums, and Greylock Investment Group attaining $40 million in assets.
With the largest network of branches, ATMs and insurance locations in Berkshire County, Greylock’s next round of expansion in 2009 will include a full-service branch in Lanesboro, new Web resources, VISA affinity programs for local non-profits, and a major investment in financial literacy programs for area teens and their families. Additional insurance and investment representatives are also being hired. “We recognize that times are tough, and it may seem like the time for financial institutions to hunker down and wait out the recession,” Stracuzzi said. “That is not what our communities need right now. Berkshire County families and small businesses need us to provide responsible loan and deposit programs and offer financial education for their kids. They need more convenience and more services, which we are providing with the new Lanesboro branch and enhanced electronic capabilities.”
A high degree of convenience makes up one third of Greylock’s “best of class” score nationally among credit unions between $1 billion and $2.5 billion in assets, as measured by Callahan & Associates. Loan and deposit rates are also evaluated to determine the total value provided by the credit union to its members. “This A+ from Callahan is a tribute to the loyalty of our members, the dedication of our employees, and commitment by our Board of Directors,” said Stracuzzi. “There is only one way you can keep loan rates low and deposit rates high while still investing in branches: you have to be very, very efficient. Our people work so hard to deliver excellent service, and our members are so loyal, we can keep our overhead low and return more resources back to our members.”
CFO John Rys indicated that Greylock is well capitalized according to NCUA standards. “Our combined earnings in 2007 and 2008 were more than $12 million, which is exceptional in these economic times,” Rys said. “A strong earnings stream makes for strong capital, and at this time, we have about $100 million in total reserves. NCUA has declared us to be a well capitalized institution. Those reserves are like a rainy day fund to help us get through these tough times.”
Greylock Membership is open to anyone who lives, works, attends school, worships or regularly conducts business in Berkshire County. Greylock Federal is wholly owned by its more than 65,000 members and Greylock offers full-service branches in Pittsfield, Great Barrington, Lee, Adams, North Adams, and Williamstown. More information is available at www.greylock.org. |
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