The six-county Northwest Iowa region is one of the most wind-rich areas of the U.S., according to the group Northwest Iowa Development. NSCCU serves these six counties as well as six other counties that are expected to benefit from the economic expansion of wind power – in addition to its staple industries of agriculture, advanced manufacturing, food processing, logistics and distribution – for years to come.

For now, however, the credit union is carving its own path of growth. In the 12 counties it serves, NSCCU operates three branches that serve a membership of nearly 10,000.

At the end of 2015, NSCCU posted loan growth of 20.6%, far surpassing the peer average of about 6.5%.

The credit union approved 3,952 of total new loans that amounted to $31.7 million, and $23.8 represented new dollars with a net total of $7.5 million in loan portfolio growth. The majority of growth was 53% in used cars and 24% in unsecured total dollars through a "get your debt under control" campaign. NSCCU also saw its membership increase by more than 1%.

And while new loans also could mean an increased risk of delinquencies, the credit union's delinquency rate declined to 0.55% in 2015, down from 1.31% in 2014.

The lending campaign was led by NSCCU Vice President Andrew G. Barriger. He was quick to point out, however, that the initiative was successful because of the vision, support and work of President/CEO Jeffrey L. Hayes, the board of directors, Marketing Manager Hayley Heims, loan officers and tellers.

"It truly was a total team effort that produced the positive results for everyone," he said.

After seeing negative loan growth in 2013 and 2014 of -1.33% and -4.09%, respectively, the board of directors hired Barriger for his extensive experience in credit union lending and operations.

He launched his credit union career as a teller for the $1.4 billion Dow Chemical Employees' Credit Union in the mid-1980s. He then landed a full-time job with the Midland, Mich.-based credit union in 1986 when he became its credit card plan manager.

Over the years, he served as vice president of lending and operations for the $46.1 million Lake Huron Credit Union in Saginaw, Mich., the $429 million BrightStar Credit Union in Sunrise, Fla. and the $117 million River City Federal Credit Union in San Antonio. Barriger also worked as a real estate manager in Michigan for more than 11 years.

"[The board] essentially hired me because of my diverse background and my experience in setting up risk-based funding," Barriger explained. "That's what we wanted, [the credit union strategy] to reward people with good credit and good rates."

Before he arrived, NSCCU was pricing loans based on the age of the car. New car loans got the lowest interest rate, while used car loans had higher interest rates. In addition, member credit scores were not factored to set the interest rates on the loans.

"We were charging higher rates for the year of the car, but why would you want to penalize the person if they can't afford a new car? And when someone buys a new car, the depreciation hits as soon as they drive off the lot," he explained. "So I just thought it would be fairer to our members to base their interest rate on their credit score."

The credit union launched its risk-based funding on Jan. 1, 2015. Based on this new model, members with a credit score of 740 or higher can get 2.29% for a new or used car, while a member with a credit score of 579 or lower can get an interest rate of 13.54%. What's more, members would also receive a one quarter percent discount for automatic payments.

On average, NSCCU auto interest rates were about two percentage points below those at two commercial bank competitors.

"As it was, we weren't going to make as much money because of the lower interest rates, but because we approved so many more loans we made up for the decrease in the interest rate," he said. "We grew our used car loan portfolio by 53%."

A marketing strategy helped get the word out about the credit union's lower interest rate, and in a small town, the good word seems to spread a little faster as well.

After securing a list of about 300 members with car loans at other financial institutions and a credit score of 620 or higher, NSCCU mailed a letter promoting their lower interest rates. Loan officers also followed up with a phone call to members.

Additionally, the credit union paid for radio and weekly newspaper ads. After the ads in the newspapers were published, the credit union saw an increase in calls and walk-in traffic at its three branches.

"People here do get and read their newspapers and that's where many members said they first saw our ad," he said.

The credit union also provided an incentive for tellers. When a teller referral led to a member filling out a loan application, the teller received a $10 bonus. Loan officers received a $20 bonus for rolling over member car loans from other financial institutions.

Soon after the marketing strategies were launched, word of mouth advertising began to kick in from the most unlikely places – banks.

According to Barriger, some employees from local banks applied for car loans and a few of them even referred their friends.

The credit union also saw its personal loans increase from 1,431 in 2014 to 1,544 in 2015 with an average interest rate of 9.99%.

The personal loans were promoted through a "get control of your debt" marketing message, which Barriger found worked successfully in other markets he worked in.

"It puts a positive spin on the loan promotion by encouraging members to get control of their debt so that they can improve their financial lives," he said.

To keep the loan production machine rolling into 2016, Barriger plans to continue promoting car and personal loans and market mortgages through competitive rates and closing costs that are around 50% lower than at local competitors.

"I know it is going to be hard to match this year what we did in 2015, but we're up for the challenge," Barriger said. "People are still buying cars and still need loans. I think the fear people had about the economy has basically faded away over the last couple of years. Among the 12 counties we serve, I think there is plenty of business to keep us busy."

In addition to branch expansion, NSCCU is also adding to its online capabilities. Members can now apply for loans through the credit union's website, and in 2017, the cooperative plans to launch mobile banking.