This year we lost an officer in the line of duty, and we sent our staff so they could see how family and coworkers were affected by it. This is the number one thing we've done to truly help them understand why we exist and why we come to work every day. That's why we've been able to experience 32% loan growth year over year.

2. What question would you have for a time traveler from 2030?

Halleck (shown at far left): I posed that question in our board meeting last night as a strategic question. I read in the February issue of Scientific American an article called "The Quantum Hack." Two governments, ours and another one, are developing a quantum computer that will make encryption obsolete. It's coming sometime in the next 20 years.

Knowing when that will be developed is so important because it will cost our industry a fortune. There's nothing we can do to prepare. It's not like government will tell us anything. It will happen and we will have to move on with other security measures. It was shocking to me to read that; the world will change as we know it.

Lane: I would ask if housing is affordable in SoCal. That affects many things that impact our credit union, not just mortgages and the price of homes, but also wages, interest rates and other things. San Diego County is horrible in terms of an affordable housing market. It not only impacts members and their ability to purchase a home or condo, but also their ability to live comfortably. The average home price is approaching $500,000 in San Diego and Orange County. We are just not seeing any affordable housing being built. We serve people of modest means and they are being priced out of the market. All that is being built in San Diego County are high-end homes.

We lost about six employees last year because they moved out of San Diego County because of cost of living, a big part of which is housing. They moved to more affordable places like Phoenix and Las Vegas, and it hurt to lose them because they were good employees.

Houle: I would want to know about self-driving cars. Did they take off? Because with our field of membership (California Highway Patrol), that will affect our credit union. 

3. What is the best response from credit unions to the taxation threat from the banking lobby?

Lane (shown at far left): I might not be politically correct here, but I think the best response is for credit unions to behave like credit unions. It's not just because of how big we are, but our best defense … I really do hope taxation doesn't confront us in the near future, but there are many things credit unions do that don't help our cause. At times I think we're at a tipping point where taxation might come up because of how we behave as an industry. I believe there are credit unions that are more bank-like than credit union-like. Yes, we're cooperatives, we have volunteers, those things are critical, but what do they mean in a credit union?

For example, as a community-based credit union, my staff and our board must reflect the diversity of the communities we serve. I don't think that's always the case. So credit unions need to make sure we reflect the diversity of the communities we serve.

Another thing that bothers me is the low-income designation. I've seen larger credit unions seek and get low-income designation and I wonder what their real purpose is behind it. I think in some cases, I don't want to paint everyone with a broad brush here, but I've heard – people talk about these things – we hear they're doing it to get around regulation. In particular, the member business lending cap. Perhaps the right thing if you're a lid credit union. But I think that chips away at a credit union being a credit union. I think most do it for a real reason, serving a membership that is lower income, but some don't.

4. Do you have advice for small credit unions trying to compete against big banks and large credit unions?

Lane: Don't chase rates on loans, especially auto loans. We see credit unions of all sizes chasing rates down a rabbit hole. We just can't do it on margin anymore. I'd avoid that. Another thing … focus on a core SEG. Became engrained in every part of their life. For example, Cal Coast is a credit union for city employees. Every year they have fireman and police recruit training. They have manual and there is one master copy for the entire class. The recruits have to individually go to printer and pay over $200 to get a copy, and they are making a tiny paycheck. We've taken the master copy and we make copies for the entire class of recruits, using the type of paper and binding the way they want. We take this burden from them and they remember that. So find those things and do them because the big banks won't.

Halleck: Use social media and online access to appear bigger than you are, especially if you have broader FOM. Online and automation are key to competing. Also, share back-office functions with other credit unions without merging to gain efficiencies.