The Eurozone: What Impact Will It Have on the US?

In spite of how slow or bad our economy seems, we are still the only developed economy in the world that has a higher GDP now than it did before the 2008 crash.  The largest industrialized economy, in terms of population, is the Eurozone.  As interconnected as the world economies are now, it is important to see what is happening in other places to see how this may impact our lives.

The Eurozone was created at the end of the 1990s.  Seventeen of the 27 European countries are in the European Union (EU).  The original structure seemed great for all these countries to ban together with a common currency, common contracts and a common economy.  But, the set-up is deeply flawed, and fixing this, if it happens, will take decades. 

The first problem is that the EU joined together good credit risk countries like Germany with poor credit risk countries like Greece.  At the time of the start of the EU, Germany could borrow around 3.5% while it was nearly 14.5% for Greece.  The Greeks have gone bankrupt every 25 years or so after they won their independence from the Ottoman Empire.  In the old days before the Euro, when a country went bankrupt, they could devalue their currency to a point that made sense and still continue doing business.  With the EU, all countries, from the Germans to the Greeks and all those in between, can now borrow at the former German rate.  Prudent financial management would dictate that countries with higher interest debt could refinance this for lower rates.  Foolish financial management means countries that could not borrow in the past, can now borrow to do anything they want.  In the case of several of the EU countries, this is like lining the table with vodka shots in front of an alcoholic.

The creation of the Euro led to a larger bubble than we had in the US.  Spain’s real estate bubble was 2.5xs as large as we had here.  The Netherlands had the 2nd largest housing boom in the EU.  The Euro also led to rampant borrowing for social welfare benefits, pensions and private borrowing in most EU countries.  This happened, as many ignored the need to increase productivity.  As such, the cost of production shot up.  Germany has some of the highest paid workers in the world, but they are also some of the most productive.  In France, the employment taxes a company pays is 50% of the salaries they pay their workers.  So even though it is higher to pay German workers, it is still cheaper to make stuff in Germany than it is in France.  This has led to uncompetitive cost of production relative to Germany and the rest of the EU.

The EU now has a banking system that is nearly insolvent.  Almost every EU bank would fail the capital requirements that are imposed on US banks.  This is from bad European house loans, bad purchases in US mortgage-backed securities and bad European sovereign debt.  In Europe, 80% of national debts are lent and held by the banks, as they do not have as sophisticated of a capital market system as the US.

The EU is also faced with governments having exploding debt obligations.  This is a lesson for the US.  As austerity measures of higher taxes and lower government spending will be forced on the countries of France, Spain, Portugal, Ireland, Italy and Greece, this will cause their economies to spiral further into recession and default, as these cures are being applied.  This will impact the world as the largest country that China exports to is the EU. 

Of all the countries, watch France.  The French government controls the banks and has forced banks to lend to insolvent and bankrupt companies.  There is lots of delusion in France with their leaders spending even more money for more social programs than before.  Their current administration immediately cut the retirement age to 60.  They have since raised it to 62 to try to salvage the pension system. 

The EU has a lot of lessons that the US can learn.  Explosive government spending, massive social programs and a lack of financial restraint lead to gigantic amounts of debt.  This debt can starve a country’s economy and prosperity for years.

Small Business Survival Tips for Tax Time

Well tax season is here again!  While many of us struggle just to keep our records straight, we need to take a moment and look at tax strategies available for the small business.   Many of your members are small business owners, and it is important for them to understand how taxes affect their business, how to properly file their returns, how to avoid audits and how to claim the right tax deductions. After all, one of the first steps to achieving wealth is to lower your tax liability to the lowest legal possible amount.  Here are some tips to ease the burden of the upcoming tax season and to help your members prepare for the April 15, 2013 deadline.

1. Keep Good Records and Understand Available Deductions - Your accountant may be able to advise you on the various tax credits and deductions that are applicable for the 2012 tax year, since their tax software programs are usually updated to ensure they don’t miss a single deduction. However, many accountants are overwhelmed this time of year and become focused on tax preparation and not tax planning.  It is important to form tax strategies to help lower your liability.  Your records should be kept as if you expected to be audited.

2. Utilize the Small Business Jobs Act Tax Provisions - The Small Business Jobs Act of 2010, signed into law by President Obama, has over 17 tax provisions to decrease tax burdens for small businesses. Several of these provisions may be taken advantage of during this year’s tax season.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Small-Business-Jobs-Act-of-2010-Tax-Provisions

3. Remember the Tax Credits within the Affordable Care Act – These tax credits will allow small businesses to recover up to 35 percent of the health care premiums a small business pays to cover its workers. In 2014, the tax credit will increase to 50 percent.  There are also some tax benefits for small employers who reimburse employees for out-of-pocket medical expenses.

http://www.irs.gov/uac/Small-Business-Health-Care-Tax-Credit-for-Small-Employers

4. Avoid Common Audit Traps - Your accountant can assist you in ensuring you are not placing ‘red flags’ in your return. An example is classifying employees as Independent Contractors. Independent contractors and employees are not the same, and it is important to understand the difference. Here is the ‘test’ provided by the IRS.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-(Self-Employed)-or-Employee%3F

5.  Home Office Deduction - Know how to determine if you are eligible to claim this deduction, and if you are, be certain you do it properly using this IRS guide:

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Home-Office-Deduction

6.  Charitable Donations - Be specific and label every deduction on the check or receipt for non-cash donations. This link is the IRS Guide for non-cash charitable giving:

http://www.irs.gov/pub/irs-pdf/i8283.pdf

In fact, here is an online mini-course covering all IRS regulations with regard to charitable giving:

http://www.stayexempt.irs.gov/Mini-courses/Can_I_Deduct_My_Charitable_Contributions/can_i_deduct_my_charitable_contributions.aspx

7. Keep Business and Personal Expenses Separate - Maintain separate bank and credit card accounts for your business and personal use. This provides easier record keeping and makes your business expenses more defensible in the eyes of the IRS.

8.  Learn the Laws that Govern Estate and Gift Taxing.  Many small businesses and farms are controlled by families.  It is important to learn tax law as it applies to transferring all or parts of the business to heirs.  Without proper planning, large tax liabilities could be incurred.  Here is the link to the IRS publications for estate and gift taxes.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes

As you see many members preparing for tax time, it is a good time to review the financing structure of the business or farm.  Perhaps there is an opportunity to plan for future expansion or a need to refinance existing debt with better terms or structure.  Feel free to contact us to help you serve your members.

Megatrends in Agriculture

We often tend to focus on our day to day activities and do not spend much time surveying the landscape.  Every now and then, it is good to pop above the tree level and get a view of the entire forest.  What follows are a few thoughts on the megatrends in agriculture that are present in agriculture.

Massive growth in food demand will continue into the future.  Currently, there are slightly over 7 billion people on the planet.  The U.K. Food and Agriculture Association predicted the population will increase to 9 billion before the middle of this century.  This is a huge increase in the demand for food.  We also have increasing middle classes in countries like India and China.  As people move from a lower class into a middle class, they will tend to consume more food.  This fact alone means that agriculture is full of opportunity.

A continuing ramp-up in efficiency and new technology will dominate changes in agriculture.  If the population will increase by 30%, then the current food output must increase as well.  Yet, there is little new arable land available in the world.  Additional production will have to come from smarter and more efficient ways to produce food to meet the growing demand.

The graying of agriculture is a serious trend as the average age of a farm operator is now at 57.1 years old according to the USDA.  This means that eventually these farms, if they are to continue in operation, need to be transferred to younger owners.  Succession planning for your farm clients is important for them to consider now instead of being blindsided by it in the future.  The wise farmer who prepares and navigates around the pitfalls of taxes and operational challenges will have a better chance of leaving that farm to his heirs.

An upcoming generation in farming will embrace new technological advances.  Farm finances can be tracked much better now.  Yields per acre have increased with the use of GPS.  The trend toward more innovations will increase in the future.  Yet, these young producers have never faced a downturn and need to learn from the seasoned veterans how to weather an economic storm.

The growth of mega-producers’ dominance in agriculture presents new challenges.  These entities can produce a concentration risk, and understanding the various attached entities that would be impacted if problems occurred with one of them is important.  For example, a grain elevator may expand to accommodate the production of a large corporate giant, but if something occurs that severely curtails the revenue the elevator would receive from the mega-producer, the elevator may face financial challenges.

Labeling and packaging will drive agricultural decisions in the future.  Take a look at bananas.  Did you know that Chiquita has come up with a special membrane that doubles the shelf life of the product, by regulating the flow of gasses through packaging?  Naturepops are wrapped in a bio-degradable film made from plant matter.  Look at how many different changes are coming in, and how the food that we buy is labeled and packaged.  Each of these innovations impacts our industry.

The energy opportunity in rural areas is huge.  We understand this impact here in the Dakotas, with North Dakota as the second largest producer of oil last year, behind Texas.  The revenue from oil and gas can be a real game changer to the family farm.  There is a push to make our country energy-independent, and oil from the Bakken will play a big part of that.  Other types of energy like wind, solar and biofuels will play an important role also.  The US Department of Energy expects alternative fuels to provide 5% of our energy needs by 2020, which is up from under 2% today.  Europe plans to have a usage of 20% biofuels by 2020, and Feed & Grain estimates fuels from agricultural feed could replace 25-30% of US petroleum imports.  Of course, these factors will increase our prices of food at the table, but it will also mean even more agricultural demand.

Agriculture will continue to be relevant.

  I recently heard of a legislator from a city, who was complaining of folks in rural America and saying they were not relevant today.  In my view, as long as folks like to eat, put fuel in their car, and use many of the products they use today, the farmer and rancher will still play a big role in their lives.

Leverage Ratios

Leverage Ratios measure relative levels of financial risk taken on by creditors and shareholders of a business. This risk is based upon the fixed payment requirements of debt. They show how much protection the company’s assets provide for a creditor’s debt since all assets are funded by debt or equity. This is where the equation assets = liabilities + owner’s equity comes from.

The Debt-to-Worth Ratio shows the degree of protection that is provided by the company’s creditors. The higher the ratio, the more leverage there is in the company and the more of the company’s assets which are funded by debt. This measures the company’s ability to liquidate its assets in order to retire debt. It can also be used by the reader to measure how much a company can reduce the valuation of its assets before creditors may sustain a loss.

This ratio can vary greatly between industries and companies in an industry. It can also vary by how a company is set up. For instance, S-Corporations, partnerships and some LLCs are set up as a pass through entity where the tax liability is transferred from the corporate level to the personal partners or members. Often, distributions will be made to the owners to help them satisfy tax liability that was created by the company operation. This can reduce equity in the company.

The ratio is calculated as follows: Total Liabilities / Net Worth = Debt-to-Worth Ratio

If a company is in a negative equity situation or has assets with values that are lower than the total of the liabilities, that company is considered insolvent.

If we have a company with $2MM in liabilities and $1MM in equity then the Debt-to-Worth (D/W) is 2:1. So for every $1 the owners have at stake, the creditors have $2 at risk. These relative values could be much different if the market or liquidation values differ greatly from what is shown on the balance sheet.

The Debt-to-Tangible Worth Ratio is slightly more conservative than the D/W Ratio. This removes any intangible value from the equity side of the equation. If our company above had $500K of value in goodwill, a patent, trademark or other intangible asset, this would be removed from the equity side of the equation.

The calculation here is: Total Liabilities / (Net Worth – Intangible Assets) = Debt-to-Tangible Net Worth Ratio.

$2MM / ($1MM-500K) = 4:0 In this case you can see that removing the intangible assets makes the leverage increase.

The Long Term Debt to Net Fixed Assets Ratio measures the amount of debt that funds the fixed assets of the company. If you had a value of 0.54, then 54 cents of each dollar of assets is funded by debt; the other 46 cents is funded by equity.

The Debt-to-Capitalization Ratio is often used by bond rating agencies like Moody’s and S&P to measure the permanent capital of a company—its long term debt and net worth. This shows what percentage of the company’s permanent capital is financed with debt compared to equity. This ratio ignores any short term liabilities that may be tied to financing receivables or inventory and may be repaid by current asset turnover or seasonality changes. This also shows how the company is relying on long term debt which finances assets and the level of profitable operations to support the leverage. The calculation is as follows:  Long-Term Debt / (Long-Term Debt + Net Worth) = Debt-to-Capitalization Ratio

If our example above has $1.5MM in long term debt and $1MM in net worth, the calculations would be as follows:

1.5MM / (1.5MM + 1MM) = 0.60 The company’s long term creditors would supply 60 cents and the investors would supply the other 40 cents of each dollar of capital.

Customer Loyalty is Golden

My oldest son took a seasonal position at Best Buy this past Christmas.  He is very skilled and knowledgeable at all things electronic, gaming and computers.  One evening, after work, we sat at our kitchen table, and he shared stories about the silly things various customers did that day.  After a half of an hour, I asked him how he liked his job.

“It’s great.  But if I could not deal with customers, it would be awesome!” he replied. 

His answer reminded me of a Peanuts comic with Linus and Lucy.  Linus has decided he wants to be a great doctor making a great difference in humanity as we know it.  Lucy tells him he cannot do it, because he doesn’t love mankind.  In the final panel, Linus declares, “I love mankind.  It’s people l can’t stand!”

If we are honest, often in the day, we have the attitude toward our members like my son and Linus.  So one day, centuries ago, some business owner came up with the idea that his company needed to satisfy his clients.  Customer satisfaction became the byword that has been charted, measured, surveyed and analyzed since that time. 

Satisfying your members or your clients is worthless.  Think about it.  If I go to a store or a restaurant and leave only “satisfied”, will I go back again?  Perhaps.  That establishment has gone into the pool of possible places to shop the next time I need that item.  Will I go there again?  Maybe.  But they will compete in my mind with all the other places where I was only “satisfied”.  My final decision will be based upon the cheapest alternative among all the shops that only “satisfied” me. 

I worked in a savings and loan in my hometown in the early ‘90s.  We did a lot of residential mortgages, so my goal was to develop relationships with each Realtor in town to get them to send their clients to me.  My goal with each one was to exceed the expectations of the client and the Realtor.  One year, the largest real estate company in my town sent half of the closings his office did to me.  They also did not recommend any other mortgage place but mine.  This happened, not because of mere customer satisfaction, but because of the relationship I built with them.

The true gold in them thar customer hills is loyalty.  If I my members are loyal to me, they love me. They know every time they do business with me, not only are they satisfied, but they have received added value to make them even more successful.  Coming back to me is an automatic response for them and not a decision based upon price.  They also will tell everyone they know about me, and their testimonial is precious.  If you are one of the very few lucky ones, they will even bring potential clients to your desk. 

Think about it.  My wife and daughter love Starbucks.  The price of the coffee and tea there doesn’t faze them.  They like the quality, taste, atmosphere and friendliness of the staff at Starbucks.  In one community we lived in, the only store where there were friendly people was at Starbucks. 

Now they can probably get the same product at another store, perhaps one even less expensive.  But is that in their decision process for good iced tea?  No, because they are loyal to Starbucks.

Customer loyalty is your goal.  Every contact you have with a business client is an opportunity you have to continue writing the story between you and that client.  What kind of story are you writing?  The first step toward loyalty is to treat your members the way you would treat your favorite sports hero, celebrity, friend, grandmother or yourself. 

New Business Ideas: How to Determine the Contenders from the Pretenders

A client sits across your desk and pours out a business idea that he needs financing for.  At this point, you don’t know if his idea is destined for failure or will be the next success.  After all, most successful businesses once started with someone with an idea sitting across the desk of a loan originator requesting a loan to get started or to go to the next level. 

Commercial and ag lending is humbling.  You can review the facts and make the best judgment possible on the loan request, but you never know if it was a good decision until much later.  The only good loans are those that eventually pay off.  So, hindsight is always 20-20, but there are some signs you can look for to determine if the idea presented to you is worth an investment in the form of a loan from your institution or not. 

Experience and Education.  Does the customer have experience in the business field that he wants a loan?  Borrowers who have the training and work experience in the field they will be operating in have an advantage compared to those who do not.  You would not want to give a loan to someone to open a medical clinic that does not have the background to operate the business.  This principle will apply to whatever business you are looking at. 

Not only do you need to look at the background of the borrower in front of you, you need to look at the experience and training of his key personnel compared to the skills required to make the business work.  For example, if you had a few good cooks with only culinary skills who want to open a restaurant, there may be some challenges since they do not understand such things like managing staff, running the “front of the house,” and optimizing cash flow.

Equity.  Successful business owners have “skin in the game.”  This can come from cash, property, or equipment they are bringing into the business.  You should run from any loan request where the borrower is expecting you to provide all the proceeds for the project and there is no investment from the borrower.  If the borrower’s idea is good enough, the request is for a venture capitalist not a credit union.

Earnings.  Good loan requests on established businesses will have a history of earnings that can support the request.  The challenge is what do you do when you are dealing with a new business venture or a huge increase in the business where there is either no history or not substantial history to support the request? 

A good lender will look for mitigating factors to combat this risk.  How reasonable is it that the business will succeed?  Does the borrower have other source of income to sustain his life while the business is in its early stages?  Can you look at some option like a government guarantee to reduce your credit union’s exposure?

Ease.  I call this the “ease test.”  Pretend that the only source of loan money was from your dear, wonderful grandmother.  She has worked her entire life for her meager nest egg and now is relying on you for investment advice.  If you took her money and lent it to your borrower, how easy would it be to explain to her your lending decision?  Would she be proud of your action?  Or, would you have to spin a verbal tale to her to justify your actions?  If you want to be a little more scared, you should be prepared to explain your decision to your management or to your regulator. 

Remember lending is more of an art than a science.  I cannot tell you that every request you have that meets these tests will end up as a good loan.  I also cannot tell you that if a request was lacking in an area or two if it will turn out to a problem loan.  I can tell you that lending involves looking at the overall picture and applying a good dose of common sense.

The Farmland Price Bubble

I recently heard of Iowa farm prices soaring to new record highs, some even as high as $20,000/acre.  The Realtors Land Institute reported in September 2012, that tillable land prices in Iowa increased by an average of 7.7% compared to the preceding 6 months.  In the 3rd quarter of 2011, the seventy Federal Reserve District reported land values increased 25% on a year-to-year basis.

We have all seen farmland increase in price substantially since food prices began to climb in 2007.  Here in the Dakotas, the increase has grown exponentially in some areas with the discovery of oil or natural gas.  But an overriding question is, “Will the inflated bubble of land prices pop and if so what will be the effect?”  Will we have another disaster like we had in the 1970s in agriculture, or another crisis like the recent housing crisis?

In the farm crisis of the 70s and 80s, total farm debt to net farm income was as high as 14:1, that is $14 of debt for every $1 in income.  Currently, the debt to income ratio has been closer to 2:1.  Data from the USDA shows the debt repayment capacity of utilization (DRCU) ratio is falling.  DRCU shows the ability of the farm sector to repay its debt over time using just farm income is still under 40%.  At the height of the farm crisis in the 80s, the DRCU was near 110%.  Debt-to-equity values are at 11.7%, showing a strong reliance on equity instead of debt to fund farms.

Part of the reduction in the ratios is from farm asset values increasing, but a lot comes from a more conservative approach to farm debt with producers and investors applying more cash equity into the project and lenders applying lower LTV limits than what they did in previous times.  Entities like Farmer Mac have recently reduced their top LTVs they will look at in areas with steep land price increases.

Clearly, the leverage applied to farms is not near what was used in the housing crisis.  A 2010 survey by the Federal Reserve Bank of Kansas City showed an average LTV of 70% of the land value.  At the peak of the housing bubble, the National Association of Realtors reported in 2006 that more than 40% of borrowers bought a house with absolutely no money down, giving a LTV of 100%.

Even though the farm economy is rather healthy now, caution should be applied.  Some strong growth-oriented producers and young farmers may be leveraged highly or are using long-term, high-priced contracts for leased farmland.  Any correction in commodity prices will compress their operating margins to the point of making the credit a problem loan. 

The lending landscape in agriculture has changed.  In the 70s, farm debt was spread out over a large number of farms and ranches.  Now, it is more concentrated with 10% of the farms generating 80% of the agricultural revenue and carrying 60% of the U.S. farm debt.  The risk today is any third party risk and how US farm debt is interconnected.  Today, if a large producer has a down year, contracts, farm alliance obligations, and ownership interests can make the complex loan a risky portfolio concentration. 

Long term cycles tend to repeat themselves every 30 to 50 years and today we sit nearly 30 years since the last dip.  Some will argue that we are due for a correction, but how severe is yet to be seen and the lack of high leverage in the Ag community points to a softer landing. 

The Fallout from the Fiscal Cliff

Well, Congress and the President finally got their act together to avoid the fiscal cliff, right? And since they did, this should not have any effect on working class Dakotans, right? If you believe that, I can show you some wonderful oceanfront property in Bismarck! You should understand how the new tax law changes will impact your business, farm clients, and yourself. 

Payroll Tax will increase. Last February, the payroll tax cut was extended through December 31, 2012. Payroll taxes include Social Security payments that were cut to 4.2% instead of 6.2% for several years. The new law reverts taxes back to the pre-recession levels of 6.2%. The impact here is a reduction of every paycheck of 2%. 

Capital Gains/Carried Interest rates will increase to 20% for individuals with adjusted gross incomes more than $400,000 and married couples with AGI more than $450,000. Individuals/couples below the AGI thresholds will still pay 15%. The effect here is a renewed emphasis on the IRS Section 1031 Exchange for higher income individuals to defer gains on property sales. 

Alternative Minimum Tax rates are finally adjusted for inflation. The AMT will be less burdensome on lower-income level s with more exemptions for credits and tax deductions; whereas, higher-income levels will receive fewer exemptions. 

Estate and Gift Taxes will be taxed at or above the $5 million per person level and the tax rate will increase from 35 to 40 percent in 2013. This will cause the need for more estate tax planning in order to pass on family farms and businesses without a substantial tax penalty. Vehicles such as life insurance and gifting become more important to shield more hard earned assets from Uncle Sam. A checkup with a trusted financial advisor knowledgeable in tax and estate planning is necessary for higher wealth clients. 

Depreciation bonus of up to 50% for property and equipment (not including real estate) is available for businesses during the 2013 tax year. 

Leasehold Improvements are now on a 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties in 2013 and is retroactive for 2012. 

Income Tax Rates are going up for individuals with AGI over $400,000 and married couples with AGI over $450,000 at a new tax rate of 39.6%. For other income levels, the Bush-era tax rates are permanent. This is something to continue to watch as some Democrats in Congress have suggested going to the pre-Reagan tax rates on high income earners of 70% should be looked at! 

In spite of the vast majority of Americans seeing their tax rates increase with this new law, virtually no discipline in Federal spending was put in place. Perhaps that may come with the debt ceiling negotiations that will occur in the next few months. These changes do require your customers to review their strategies to keep their tax liability at the lowest legal level possible.

Introducing Midwest Business Solutions

Greetings! I am the new President/CEO of Midwest Business Solutions, Phil Love. I accepted the position in May of 2012 and have been working to put all of the pieces together from scratch to make up a viable financial company. 

I was born and raised in Fulton, Missouri.  My hometown is notable because it is where Winston Churchill gave his famous “Iron Curtain” speech denoting the dangers of communism.  In Fulton, I took my first job in financial services while attending high school as a part-time bank teller.  I then worked my way through Westminster College as a teller and branch manager for a local bank. 

After college, I went to work for a regional savings and loan in Mid-Missouri.  We did quite a bit of personal and residential business and even some commercial lending.  I was able to grow my branch from the smallest in the organization to the largest branch outside of the home office. In the early 1990's, we were very busy financing residential loans as interest rates were at record lows. 

The savings and loan that I worked for went from a mutually held association to a stock owned company, and was sold to Union Planters Bank (UPB).  I stayed with the company and gravitated toward commercial and agricultural lending.  I also earned my graduate degree from the Graduate School of Banking at the University of Wisconsin while at UPB.  (UPB eventually sold to Regions Bank.) 

While I was working with the savings and loan, I met my wonderful wife, Angela, whom I have been married to for over 20 years now. We enjoy spending time with our three kids. 

After nearly 15 years working with those financial organizations, I left Mid-Missouri and moved to Colorado, taking a commercial and agricultural lending position with Vectra Bank, the Zions Bancorporation affiliate in Colorado.  I was there for six and a half years and built the largest portfolio of any officer outside of the Denver metro area. 

While at Vectra, I became involved with the property exchange networking group on a state and national level.  I also earned the prestigious Certified Commercial Investment Member (CCIM) designation in commercial real estate. 

In February, 2012, I received a call from a recruiter asking if I would be interested in leading a CUSO. I had no idea what a CUSO was at the time.  

As I met the different credit unions and people involved, the position intrigued me.  The ability to build a company from ground up and really make a difference in this area is exciting.  I do not want to just focus on making our credit union clients better in commercial or agricultural finance, I also want to assist them in becoming competent and trusted financial advisors to their members. Our goal at MBS is to support them in becoming a competitive force with the best commercial banks in their area.