NCUA-Run Chetco Hires Ex-CEO of Advancial as Interim CEO
The NCUA confirmed Wednesday that a retired CEO of the $956 million Advancial FCU of Dallas, Gary Jester, is serving as the interim CEO of the $333 million Chetco FCU of Brookings Harbor, Ore.
Chetco was placed into conservatorship on Friday. It lost $16 million last year after suffering large losses on its real estate portfolio and has been on the NCUA watch list.
The 32,000-member CU had a negative net income during three of the past four quarters and lost $212,215 during the second quarter. Its net worth at the end of June was 5%.
An NCUA spokesman said “there were long lines at the credit union” but that there has been no interruption of service. That followed extensive coverage of the Chetco problems in local media, including comments from business people who said they were taking money out of their accounts.
The CU, located at the tip of Oregon’s southwest coast on the California line, has been managed the last four months by CEO Diane Johnson, the wife of Tom Glatt Sr., former head of REALTORS FCU in suburban Washington and Continental FCU in Tempe, Ariz.
Johnson and her husband are northern California-based consultants and she is a former president of the Credit Union Mortgage Alliance Network.
Last July Chetco acknowledged its soaring delinquencies on business and real estate loans and said hiring Johnson should bring a “positive future.”
Chetco said Johnson and her husband had been consultants for the credit union for years before she assumed the CEO post on June 1.
NCUA said Jester was selected for the Chetco post from the agency’s pool of managers assigned to conserved CUs.
In an e-mail bulletin Friday, the Northwest Credit Union Association said the Texas CEO had spent 24 years at Advancial and had seen the CU grow from $100 to $670 million, with offices in Dallas, Houston, Louisiana and Oklahoma.
A spokesman for the $44 million Rapid City Telco FCU in South Dakota said Jester also had been brought in by NCUA “to help us out” and had served at the helm for a year there.