Commercial Lending 101, with Trevor Haley of IMCU and Andy Ivankovich of Baker Hill

In this episode of TechSolutions4CUs, the official Finopotamus podcast, host and publisher John San Filippo dives into the massive, yet often overlooked, opportunities within commercial lending for credit unions. Joining the conversation are two industry experts: Andy Ivankovich, CEO of Baker Hill, a commercial and small business lending technology provider with over 40 years of experience; and Trevor Haley, Vice President of Commercial Underwriting at Indiana Members Credit Union (IMCU), a $3.5 billion institution managing an approximate $750 million commercial portfolio.Together, the panel explores how credit unions can successfully compete against major banking institutions, transition away from manual processes, and leverage next-generation technology to safeguard their portfolios.Key Discussion HighlightsThe Credit Union Opportunity: While credit unions traditionally focus on consumer lending, the commercial space offers a prime avenue for driving yield and gathering deposits. Larger credit unions have excelled here for decades, and many are now efficiently scaling their operations—even acquiring community banks to absorb established commercial lending teams.Fierce Competition & Relationship Banking: Competing against massive national banks requires a strategic approach. While the heavy hitters dominate commercial and industrial (C&I) lending, credit unions can find immense success in commercial real estate (CRE). Credit unions hold a distinct advantage through true relationship banking—building deep, trust-based partnerships over a cup of coffee—that larger institutions struggle to replicate.The Danger of Excel and the Shift to Tech: For institutions managing just a few CRE deals, spreadsheets might suffice. However, as a portfolio scales past a couple hundred million dollars, technology becomes critical. The experts discuss why relying on manual spreadsheets is unsustainable and risky, as a single multi-million-dollar bad loan impacts an institution far differently than a standard auto loan default.Core Integration & Eliminating Human Error: A seamless two-way flow of data between a loan origination system (LOS) and the credit union's core platform is vital. The guests explain how mapping hundreds of data fields reduces hours of redundant manual data entry, cuts down on human error during loan booking, and gives underwriting committees a comprehensive view of a member's entire relationship.AI as an Enablement Tool: Looking toward the future, artificial intelligence is highlighted not as a replacement for relationship bankers, but as a powerful tool to eliminate administrative friction. From automating the spreading of tax documents in milliseconds to providing early warning indicators for portfolio monitoring, AI allows lean teams to cover more ground and proactively manage risk.