Unexpected CEO Departures Shock Industry
Changes at the top at some credit unions in 2013 caught some by surprise.
Among them was Juli Anne Callis, who resigned as CEO in June from the $561 million National Institutes of Health Federal Credit Union in Rockville, Md.
Callis said she wanted to get more involved in health management and health care advocacy. She had served at the helm of NIHFCU since 2009. Tim Duvall, the credit union’s executive vice president and deputy CEO, was named the interim CEO.
At the time of Callis’ resignation, NIHFCU’s financials did not reveal any significant concerns.
In March, Ken Burns, president/CEO of the $4 billion Patelco Credit Union in Pleasanton, Calif., since May 2009 announced he would resign over the summer, citing the need for new challenges.
Erin Mendez, the former executive vice president and chief operating officer at the $9.7 billion SchoolsFirst Credit Union in Santa Ana, Calif., was hired as the new president/CEO at Patelco in mid-August.
A month later, CU Times discovered that the $1.7 billion Technology Credit Union in San Jose, Calif., where he previously served as president/CEO, filed a complaint against him regarding the circumstances of his move to Patelco. For more details visit CUTimes.com.
The resignation of $1.7 billion Affinity Plus FCU President/CEO Kyle Markland took place Aug. 28. The credit union chalked up his departure to empty nest syndrome after his second child went off to college.
Dave Larson was named the interim president/CEO shortly after Markland’s resignation and on Nov. 21, his role became permanent.
At the time of Markland's resignation, Affinity Plus reported a 0.57% return on assets as of June 30, according to its financial performance reports posted on the NCUA website. In the third quarter, return on assets dropped to 0.25%. Comparatively, in June 2012, the credit union reported 1.45% ROA.
Affinity Plus’ third quarter financials revealed a number of financial management strategy shifts that resulted in a 55.1% annualized drop in net income as of Sept. 30. Net income dropped from $4.6 million as of June 30 to $3.1 million as of Sept. 30. The credit union also experienced a 12.7% increase in provision for loan and lease losses after delinquent loans increased 23.5% to $16.5 million in the third quarter.