Oshkosh Central CEO Suspended
Mark Patchak, president/CEO of the $28.6 million Oshkosh Central Credit Union, was one of two employees suspended pending the conclusion of a state investigation of substantial irregularities involving the Oshkosh, Wis.-based cooperative.
Catherine J. Tierney, president/CEO of the $2 billion Community First Credit Union in Appleton, Wis., who is temporarily managing Oshkosh Central CU’s daily operations, confirmed Patchak is under suspension.
During a routine examination, auditors of Wisconsin’s Department of Financial Institutions allegedly found the irregularities involving a substantial amount of money at Oshkosh Central CU, according to George Althoff, DFI’s spokesperson in Madison, Wis.
Subsequently, Oshkosh Central’s board of directors suspended Patchak and another unidentified employee in early May.
Under a management agreement between the two credit unions, the Wisconsin DFI and NCUA asked Community First to oversee Oshkosh Central’s daily operations during the ongoing investigation.
When contacted by CU Times, Tierney declined to provide details of Patchak’s suspension or identify the second suspended employee.
“At this time in an active investigation I cannot comment on those things,” she said. “It’s just a waiting game now to determine what the investigation is going to find and when it will come to a conclusion. I don’t have any knowledge or control over that side.”
Patchak earned nearly $130,000, according to Oshkosh Central’s IRS 990 form for 2012. In the same year, the credit union posted a net loss of $327,000, NCUA financial performance reports show.
In 2011, Patchak’s was paid $122,000 and in 2010, he received $112,000, according to IRS 990 forms.
Patchak did not respond to a phone call at his home or an email via his LinkedIn account seeking comment.
He was hired as Oshkosh Central’s president/CEO in April 1994, according to Patchak’s LinkedIn profile. From March 1991 to March 1994, he also served as president/CEO of the $4.8 million, 662-member Oshkosh Postal Employees Credit Union.
The 3,472-member Oshkosh Central has about eight employees and one branch.
“Cindy Pierce is serving as our acting branch manager and she is there on a day-to-day basis,” Tierney said. “This is something we’ve done on a number of occasions for smaller institutions that are going through a trying time, so we provide that leadership, guidance and stability to make sure things operate as they need to and the members are well served. Things are running very well and we are pleased to have the opportunity to help out.”
Though NCUA financial performance reports show the Oshkosh Central posted a net worth of 10%, it is below peer average of 12%. However, Oshkosh Central also posted lower than peer averages in return on average assets (0.03% v. 0.20%), gross income (3.81% v. 4.42%), yield on average loans (4.15% v. 6.10%) and net interest margin (2.82% v. 3.06%).
While the cooperative’s total loans slid slightly from $20.6 million in 2009 to $20.4 million in 2013, its loan income substantially dropped from $1.2 million in 2009 to $847,000 in 2013, according to NCUA financial performance reports.
In 2009 and 2010, Oshkosh Central recorded net income gains of $74,816 and $21,351, respectively, but also posted net losses of $41,034 in 2011 and $327,375 in 2012, NCUA financial performance reports show.
Last year the credit union saw a net gain of $8,493. It also posted a net gain of $35,517 by the end of the first quarter of this year, according to NCUA financial performance reports.