MEMPHIS, Tenn. – Dr. Craig Esrael is marking his 40th year as CEO and president of First South Financial Credit Union, having overseen asset growth of more than 2,400% to $796.4-million during his tenure.
As CUToday.info reported here, First South noted that since Esrael was named to lead the organization in 1983, the now $796.4-million CU has seen asset growth of more than 2,400%, and capital growth of over 22,000%.
“Under Esrael’s guidance, employee efficiency has increased from approximately one employee for every $800,000 in assets to approximately one employee for every $5,800,000 in assets. This is in large part to his ongoing strategy to automate workflows as much as possible,” the credit union said.
Below, Esrael shares his insights, lessons learned, experiences and more as part of this CUToday.info Q&A:
CUToday.info: You are marking your 40th year as CEO: how did you come to be involved in credit unions?
Esrael: After graduate school, I was interviewing with a few different companies and different industries, and I realized I wanted to pursue a career in finance. As I learned more about investment banking, retail banking, and credit unions, I discovered that retail banking through a credit union has real heart—it touches all aspects of a person’s life. Being a part of a credit union gives me a genuine and tangible way to improve the lives of the people in my community and the community as a whole.
CUToday.info: You have overseen significant asset growth. What have you learned about driving and managing growth, and has that evolved or changed?
Esrael: When I came on board as CEO in 1983 the organization was in trouble. Poor morale, six straight quarters of losses, and was close to being put into regulatory conservatorship. Many thought I was crazy to take the job, but I felt very differently. I knew this was my chance to really make a difference. To take a failing organization, pull it back from the brink, and make it into something better and stronger than it was before.
Now, we’re among the top 1% of financial institutions nationwide for fiscal strength and stability, a ranking we’ve enjoyed for the past 30 years and counting. Orchestrating that turnaround taught me several things, but most importantly, that you should have a clear plan in mind and do everything you can to make it happen. You may have to pivot or adjust along the way, but the end goal should remain constant. It’s like climbing a mountain; there can be many paths to the top, but the important thing is to make it to the summit.
CUToday.info: The credit union has focused on efficiency. Where have you found strong opportunities to be more efficient, and where might other credit unions look to improve based on the lessons you’ve learned?
Esrael: The question I always ask myself, and task our employees with asking is, “How will this benefit the members?” The answer usually falls into two categories – something that benefits the members directly (new product, new service, new technology, etc.), or something that helps the staff do their jobs more effectively and efficiently, which will in turn benefit the members. If we can’t provide a sound answer to that question, no matter the category, we don’t move forward.
First South’s efficiency and productivity is a direct effect of the commitment of our team to do the right thing for the member, which is ultimately the right thing for the organization. I would challenge other credit unions to look inward and make sure that they are answering the question of “How will this benefit the members?” and let the response be a litmus test as to whether an undertaking is worthwhile.
CUToday.info: First South has unusually high net worth, 28.7%. Why, how have you built it and what does it allow you to do?
Esrael: It goes back to my earlier response—when I started with this organization we were starting from a position of low morale and six straight quarters of losses. The immediate need back then was to stop the bleeding and create a system of fiscal management that reigns in expenditures and maximizes efficiency—leading to profitability. We have built our net worth position over decades of diligence and sound financial management; it is not something that can be accomplished as a short-term effort.
Putting in the time to focus on securing our net worth position makes us resilient and gives us opportunities to seek out the best and most appropriate technology solutions, and product and service solutions to deliver the best value back to our members.
CUToday.info: What is your view on the future of credit unions, if there is to be one?
Esrael: The future of credit unions is dependent on the current and rising credit union leaders of today. What sets us apart from other financial institutions is our industry mantra of people helping people, and we must hold steadfast to that foundational principle while still evolving our operations to be financially strong, efficient, creative, and innovative. We are in an unprecedented environment of mergers and acquisitions, which means in a decade there will be half the number of credit unions and community banks than the number we see today. Those that remain will need to employ top quality talent that can deliver with fervor and passion on our collective promise to improve the lives of the members that we serve.