Don't expect Joe Brancucci to back down from his convictions,especially when it comes to how credit unions have the choice ofevolving or face extinction. 

Granted, his views emanate from opinions shaped by the highs andthe lows seen in the financial services sector during his more than40-year career, including 20 years within the credit unionindustry.

Brancucci's passion was on full display last summer aspresident/CEO of the $1.5 billion GTE Financial in Tampa, Fla.,when a strategic plan for a rebrand in place before he took thehelm in 2010 called for the words “federal credit union” to bestripped from the cooperative's moniker. That stirred up a streamof dissent and angst among his industry peers and a fewmembers.   

For his fervor in carrying forth a controversial change thatbroke away from tradition, coupled with sweeping growth surges inlending, membership and a reinvigorated employee culture of trustand transparency, Brancucci has been named Credit Union Times 2013Trailblazer CEO of the Year. 

Among the reasons for the rebrand were reaching out to a youngerdemographic outside of the GTE legacy, getting up to speed on thelatest technology and quarterly financials posted for all membersto see.

More than six months after the GTE Financial name lit up messageboards and social media channels so much that Credit UnionTimes tackled the issue in an Eloquent Online radio show lastfall on using the words “credit union” in branding, Brancucci hasno regrets about the rebrand.

“No question it was the right decision to make,” Brancucci offered. “To me, it was interesting to hear all theacademic discussions and in some respects, the histrionicdiscussions. But I can tell you the pundits were absolutelyincorrect. We're talking about having engaged members.”

GTE Financial's journey back to reconnection launched more thantwo years ago when the credit union's board of director put inplace a strategic plan to put the focus on members, employees and acommitment to surrounding communities. However, it was in 2012 whenthe fruits of the metamorphosis started to ripen. 

Like many credit unions, lending at GTE Financial literallycrumbled under the weight of the Great Recession. The situation wasso dire that in 2009, the financial institution announced tomembers that it would no longer originate loans. As a result, loangrowth slipped into negative territory by nearly 6% in 2011. Itwould take a concerted effort to bring reassurance back to membersas the economy shifted and refinancing and other lendingopportunities revitalized.

“We had to convince members that we were lending again,”Brancucci recalled. 

When the Home Affordable Refinance Program made its debut, GTE Financialimmediately signed on as one way to inflate its sagging mortgageloan portfolio. Advocates said the HARP program offered relief tohomeowners behind on their mortgage payments who were unable to gettraditional refinancing because the value of their homes haddeclined.

“We aren't certain why others in our market chose not to offerHARP–maybe for fear of processing nightmares, maybe uncertainty ofthe program–but it was never a question whether we should,” saidE.C. Williams, executive vice president and chief operating officerfor GTE Financial. 

In 2012, the credit union said it closed more than 1,700 HARPloans totaling more than $213 million and saved members over $70million in interest. Another benefit was through HARP, GTEFinancial was able to reintroduce the credit union back to theRealtors in the communities served by the cooperative, Brancuccisaid. 

Mortgage lending became the driver of GTE Financial's portfoliogrowth. The demand was so great for fast and accurate processing sothat members' loans could close in a reasonable amount of time thata new CUSO, Home Loan Alliance, was launched in 2012 for mortgageprocessing, real estate title services and secondary-marketprocessing.

In the auto lending arena, GTE Financial reintroduced the creditunion to every auto dealership in its surrounding markets,Brancucci said. As a result, new and used vehicle loans skyrocketedfrom negative 11.29% in 2011 to 70% in 2012 with a portfolio thatincreased substantially from $204 million to nearly $348 millionduring the same time period. 

Overall, the move back into lending ushered the credit unionback into the black going from negative 5.42% loan growth in 2011to 16.6% growth in 2012, according to GTE Financial. Brancucci isespecially proud that the turnaround didn't involve putting badloans on the books. When he took the helm in 2010, it reallybothered him that the credit union had to stop lending simplybecause he doesn't believe credit unions are in the business tohunker down. 

“It was a sinking ship. We were battered by the recession. Thisis a low-income designated credit union. Low- and middle-classmembers got hit really hard by the recession,” Brancucci said. “Thecredit union didn't have the infrastructure to deal with it.”

Membership had also taken a beating over the past few years. In2011, GTE Financial's net member growth was negative 8,000. Lastyear member growth swelled to 16,070. The credit union set a goalof 6% for net member growth in 2012. It exceeded that mark,reaching more than 9.11% thanks to a number of changes thatoccurred as a result of the rebrand. Among them, defining themember experience and developing a more engaged workforce.

GTE Financial's more than 550 employees attended brand camps tolearn how the change would benefit current and new members. Anemployee culture book written strictly by employees was a pendulumswing away from the August 2009 environment when the credit unionpromised no layoffs. The cooperative went back on its word with anabrupt round   of layoffs and pay cuts–all with little orno communication or explanation, reads an entry in the employeeculture book. 

“Team members, by their own admission, worked in an environmentwhere they were not respected, had no idea what was going on aroundthem and had little or no effect on decisions, processes and themember experience,” Brancucci wrote in the culture book'sforeword. 

The goal going forward is determining what GTE Financial's staffbelieves the credit union's culture is and not what we the leadersbelieve it to be, Brancucci wrote. 

Despite a strong 2012, there are still a few concerns that keepBrancucci up at night: legacy assets the credit union holds and theeconomy not recovering as quickly as he would like. 

“Regulator tsunamis also keep me up a bit. It can cost us afortune in member money to be compliant. We manage around thosethings and we're going to be compliant,” Brancucci emphasized. “I'man optimist.”

The New York native has a busy schedule–the board has to remindhim to take some time off–but he teaches financial literacy andtravels as much as he can.