Pat Vaughn makes career move from banks to credit unions — Focus Profile

Only 35,000 people lived in Boise when Pat Vaughn graduated from high school in 1965. Except for time spent working in California in the early 1990s, he has been a lifelong Idahoan.

Vaughn is the president and chief executive officer of Idaho Advantage Credit Union, located at 10536 Emerald in Boise. After receiving a degree in 1970 from then-Boise State College, he started a banking career that would last 40 years.
Initially, he worked for a bank in Boise called Idaho First National. His last banking job, prior to joining Idaho Advantage, was at Wells Fargo, where he was a business relationship manager. As with many careers, Vaughn’s had a few twists and turns. He left banking in 1991 to work as the chief lending officer at the Monterey Credit Union in California.
When he returned to Idaho in 1999, he took the Wells Fargo job. Then, in 2005, he went to work at Idaho Advantage Credit Union.
Formerly Boise Telco Federal Credit Union, Idaho Advantage was originally an employer-based credit union targeted toward workers in the telecommunications field. It was started by five founders and, at the time, only employees of Mountain States Telephone & Telegraph were eligible to join.
As of last year, Idaho Advantage Credit Union switched to a membership that includes “anyone who lives, works, worships or attends school in Ada and Canyon counties and their immediate families.”
“You’ve seen what happened, with cuts in the telecommunications industry,” said Vaughn, explaining the change in criteria to broaden membership. “If [an] industry contracts, you don’t have members.”
Idaho Advantage also switched from a federal-chartered (through the National Credit Union Administration) to a state-chartered credit union (through the state Department of Finance).
There are pros and cons to each type of charter, said Vaughn. A federal charter can be much more complicated and restrictive, he explained. “Going from federal to state was easy. The other way around would take longer and be more paper-intensive.”
However, one advantage to a federal charter, according to Vaughn, is taxes – a federally chartered credit union is not taxed, “but the state chartered credit unions are taxed in some categories,” he said.
Like many other credit unions in the Treasure Valley, Idaho Advantage has a long history. It turns 70 on Aug. 31, making it one of the oldest credit unions in the area.
Idaho Central Credit Union dates back to 1940; Westmark Credit Union to 1954; Capital Educators Federal Credit Union, 1936; Pioneer Federal Credit Union, the 1950s; Idahy Federal Credit Union, 1952; Les Bois Federal Credit Union, 1955, as Broadway Federal Credit Union; and ESA Credit Union, 1940.
Credit unions are generally started by people with a common bond, whether through jobs, churches, or other shared factors. “They want to get together and pool their resources to help each other,” Vaughn explained.
Of the other credit unions in the area, Vaughn said, “Credit unions by and large don’t compete with each other, but are more competitive with banks. Credit unions are very cooperative and share best practices and ideas.”
Idaho Advantage is consumer- rather than business-oriented. The current economy has had some effect on the credit union. “Our margins are squeezed like everyone else,” said Vaughn. “We monitor credit quality a little tighter. … We haven’t tightened up a lot of our credit criteria. We’re still able to lend money.”
Other trends include a slight spike in delinquency rates. “We work with members a little more closely,” the CEO stated. The slowdown in the construction industry has been the primary contributor to the trend.
Banks and credit unions have a number of things that sets them apart and makes them competitors. According to Vaughn – who has worked in both industries – one of the primary differences is, “If you’re with a bank, you’re a customer. With a credit union, you’re a member / owner.”