A steady hand in bankingâ€™s turbulent waters

William Spearman wasn”™t always head honcho at Mid-Hudson Valley Federal Credit Union. Back in 1972, after graduating from Ulster County Community College, Spearman applied for a job as an assistant bookkeeper at IBM”™s credit union in Kingston. “We were Big Blue”™s credit union in those days,” recalls Spearman, one of several credit unions IBM created for thousands of its workers across the Hudson Valley.
In fact, IBM was the main catalyst for helping its credit unions, including the future mid-Hudson Valley institution (MHVFCU), enter the computer age, “And I was elected to figure out how to run it,” recalls the banker with a smile in his voice. “IBM was a good partner to us ”¦ They chartered us in 1963 and gave us space in their facilities for our members to use. When computer technology came along, they helped us purchase one and get us up and running.”
But then the layoffs started coming, and plants up and down the river were either closing or cutting back. “We were asked to move our branch off site,” said Spearman. Then IBM pulled its entire operation out of Kingston. It was akin to an economic tsunami for the community. More than 25 percent of the population eventually left the city. “I won”™t even try to minimize the impact it had on us,” says Spearman. “Many of our members lost their jobs; 1995 was a particularly tough year. We created a committee to help former employees find new work.”
Eventually, says Spearman, “We recovered from what seemed at the time to send us into a tailspin.Â We certainly miss IBM, and so have the other credit unions that once relied on it. But we have all found a new niche, and Mid-Hudson is serving more members than before. Our assets have continued growing.”
Like its peers that once called IBM home, MHVFCU was eventuallyÂ able to open up membership to people who worked, lived, went to school orÂ worshipped in Ulster, Dutchess and Orange counties through the charter process. “As a result, our customer base has grown. Many people like the concept of a credit union because they have a direct say in who will serve on the board of directors. They are members and our owners, not just depositors.”
Spearman is especially glad that the New York State Credit Union League has restructured its board of directors, ensuring representation in all asset categories. “Now, both large and small credit unions are represented throughout the state,” says Spearman, who was elected to sit on the 11-member board. Â Â Â
The 11-member board represents small credit unions with assets under $25 million; those with $25 million to $50 million in assets; $100 million to $500 million; and $500 million plus. Says Spearman: “Now, there is a voice for all asset categories, not just a few. It makes for better, more balanced relationships all the way around.”
SpearmanÂ has worn many hats during his 30-plus years with the credit union and adds an artistic feather to his banker”™s cap ”“ that of member of board of directors for the Bardavon 1869 Opera House in Poughkeepsie.Â Its relationship with Ulster County”™s Art Center is helping Kingston recover economically, drawing artists of all genres to the city.

Spearman also served as president of the Ulster County Community Foundation, his local Kiwanis Club and Kingston”™s chapter of the New York State Credit Union League. He sits on the Ulster County Community College (UCCC) Foundation, which holds a special place in his heart. “It”™s like going home when I go there,” says the UCCC graduate. “It”™s work that is truly a pleasure, because I”™m helping the next generation of business leaders.” No doubt Spearman is hoping students will follow his lead and stay in Ulster County and contribute to the work force.
Under Spearman”™s leadership, MHVFCU exceeded national averages in 2006 for U.S. credit unions in asset growth (6.8 per cent vs. 4.6 per cent) loan growth (13.2 percent vs. 7.8 percent) and share growth (6.1 percent vs. 4.2 percent), an achievement considered remarkable in light of an ongoing branch expansion program to fulfill its commitment to Ulster, Orange and Dutchess counties. Two car loan promotions contributed to a 38 per cent growth in loan originations last year.
The credit union has also upgraded its call center operations to serve members 24-7 and expanded branch hours to 8 a.m. to 6 p.m. daily and 9 a.m. to 2 p.m. on Saturdays. Electronic-delivery channels were improved with home-banking enhancements, including a Spanish version, encrypted e-mail service and an e-statement promotion to highlight the speed and security of its electronic statement delivery. MVHFCU received a five-star rating in 2006 from Bauer Financial.
MHVFCU has 50,000 members and is counted among the top 15 credit unions in New York state. “Since our board of directors all serve voluntarily, and we are a nontaxable entity, the total sum of our work is turned back into member benefits,” said Spearman. “We cannot compete with the larger banks, and we don”™t even try to. Credit unions represent approximately 6 percent of the nation”™s total financial assets. We do have a strong base in New York.”
More than ever, says Spearman, he applauds local banks that have retained their identities and resisted the temptation to merge with larger institutions. “Catskill Hudson, Ulster Savings, Sawyer Savings, Rondout Savings ”“ they are community banks whose presence is sorely needed here.Â We don”™t see them as competition; we see them as partners.”
Today, says Spearman, his industry doesn”™t see the same longevity or loyalty he embraced as a young college graduate coming into the workplace. The phenomenon is no surprise to the 35-year veteran banker, who said many of his customers”™ children saw their parents lose jobs at IBM, “the company no one ever thought would leave. When the young people today see what happened to our generation, they do not want that to happen to them. The result is we don”™t see potential hires coming through the doors expecting to make a career with one company. As companies continue to downsize, young people have lost confidence in the workplace. They jump from job to job, and go where there is more opportunity. I think it has hurt business as a whole.” ?Â Â Â Â Â Spearman hopes to see a turnaround in the work force”™s attitude and companies rewarding their employees”™ loyalty. In the final analysis, says Spearman, it is the work force, not the bells and whistles, which keep customers satisfied. “I have been very lucky,” said Spearman. “I have a 10-minute commute to work. I often think of people here in the community who travel three to five hours each day just to get to jobs.” One thing Spearman would like to see is companies valuing employees more and creating a desire to stay put. “We have to create an atmosphere in business that changes the paradigm that exists today.”
Spearman, who was just a baby when his parents came from the Bronx and made their summer bungalow in Kingston their permanent home, sees Ulster as the next bedroom community for Orange County. Like a domino effect, Westchester became a bedroom community for New York City, and now the mid-Hudson has become one for Westchester. “It will all catch up eventually,” predicts Spearman. “Our quality of life has a lot to offer, and house prices are still reasonable, so people are coming here.” He hopes they will bring business with them and rebuild Kingston. “We won”™t be the same city we were when IBM was here. But hopefully a better, more-diverse city, especially in terms of economy.”