Banks Balk as Credit Unions' Commercial Loan Portfolios Grow

By Barbara Pinkney, The Business Review (Albany)

In early July, Capital Communications FCU made its first business loan.

A month later, the Colonie-based credit union has about $2.5 million in commercial credits in the pipeline, and is looking at another $9 million in deals. It also is building a base of commercial deposits and signing up clients for merchant services such as debit and credit card processing.

“Starting from scratch is great,” said Edward Jennings, who joined CapComm in May, from a career in commercial banking, to lead the business-lending effort. “Five years from now we can look back and say ‘we had nothing and now look where we are.’”

SEFCU, the area’s largest credit union, already is in a position to look back over five years of business lending. In that time, the Albany-based institution has made about $40 million in commercial loans.

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