By Mindy Tate. Williamson Herald Editor
mtate@williamsonherald.com

In business, people often say it is about location, location, location, and while Cornerstone Financial Credit Union has relocated its office to a highly visible corner at Fifth Avenue North and Fair Street in Franklin, CEO Hank Flury still thinks it is also about relationships, relationships, relationships.

Cornerstone has been located since 1991 in Independence Square shopping center on Hillsboro Road, but made the move to 120 5th Ave. N. earlier this fall, with a grand opening on Oct. 16. But while Cornerstone was in Independence Square for almost 20 years, its relationship in Williamson County go back to 1965, Flury said, when it became associated with the Williamson County Education Association and then opened its first branch in 1987 on Columbia Highway.

Five years ago, the then Educators Credit Union became Cornerstone, with a direct purpose of expanding the membership.

“That really changed to reflect the diversity of the membership,” Flury said.

Despite the recession, Cornerstone Financial Credit Union has seen a surge in deposits and loans and is moving its Franklin offices to larger quarters near the Square so it can better serve its growing base of customers.

Cornerstone’s branch office, which had been at Independence Square, moved to a new, larger and more convenient location at 120 5th Ave. N. on Sept. 28.

“First and obvious, we feel like this is a better location from a convenience and visibility standpoint,” Flury said of the new location, which had been a bank previously although it had set empty for almost one year.

“The Streetscape that has been done here with the streetlight here and it is a bigger facility,” Flury added of the location’s advantages. “We are really attracted to the idea of being part of the downtown business community and being able to have involvement in the activities here.

“Even though we were only half a mile from here (at our previous location), it was almost like we were light years away,” he said.

Credit union customers are called members since they actually join the organization, Flury said.

“We are not a bank, but we are in the banking business,” Flury said. “First, we are one of the oldest financial institutions in this market … The credit union is a cooperative that is owned by the members who have accounts here. Whether you have a minimal account or a large account, you have a vote in electing the board of directors, who are a volunteer group that direct the management and operation of the credit union.

“As a cooperative each member has a vote and so in that sense there is (individual) control,” Flury said. “I like to think the fundamental difference is that in being a cooperative and being owned by our members, our whole philosophy is about being advocates for and looking out for the interests of our members. Ten years ago, we were turning away real estate applications because we were not in the business of doing the type of loans that were being done. But we did not and still do not think that type of lending is in people’s best interests.”

In Cornerstone’s portfolio, those decisions have paid dividends of financial solvency.

“Despite the recession, we’ve seen a real surge in membership, loans and deposits, and have retained a strong mortgage portfolio this year in Franklin and overall,” Flury said. “Speaking to the issue of lending and specifically real estate lending, my granddad used to say, ‘You don’t have to apologize for something you didn’t say.’ We don’t have to clean up a mess of sub-prime and exotic mortgages because we didn’t make them.

“We have had a pretty traditional outlook on lending. That doesn’t mean we don’t stretch to help people, but it does mean we don’t believe in using loan vehicles that place people in a delicate balance or put them in financial jeopardy,” Flury said.

“In Williamson County, we have not seen in our loan portfolio, any serious delinquency or foreclosure in this market since the recession. I think it is fair to say that Middle Tennessee in relation to the rest of the country is in a pretty good position,” Flury said, although he added Cornerstone does not represent a large percentage of the real estate market locally.

“Good loans are good loans no matter what is going on in the economy,” he added.

“We are tax-exempt because of our non-profit status so excess income profits are put back into the business,” Flury said. “Primarily that shows up in the form of better rates and lower fees or no fees.

“There are a lot of misperceptions about credit unions but it seems people are taking the time now to learn more about us and are realizing that we aren’t just the place to get a great rate on an auto loan,” Flury said. “We offer everything from checking accounts to mortgages and investment services, plus free financial education and even debt counseling services for members. That’s been a real plus as some have struggled to manage finances during tough economic times.”  

Making the move to Fifth Avenue were longtime assistant branch manager Joan Brown and manager Judy King, who relocated from East Tennessee about three years ago to her position with Cornerstone.

Cornerstone Financial Credit Union, with over 26,000 members, has been operating in Middle Tennessee since 1955 and in Franklin since 1965. In addition to its Franklin branch, it has locations in Clarksville, Dickson, Hendersonville, Murfreesboro and Nashville, and offers members fee-free access to their money at more than 24,000 ATMs nationwide. 

Posted on: 11/12/2009