Credit Union Ousts Staff Following Exam
Claudia A. Rawes, manager/CEO of the $12 million Centra Health Credit Union, and two other employees were placed on administrative leave following a state and federal examination, according to a prepared statement on the credit union’s website.
On Tuesday, Jan. 6, examiners from NCUA and the Bureau of Financial Institutions of the Commonwealth of Virginia conducted a routine examination of the Lynchburg, Va.-based cooperative. That evening the board met to review the initial findings with the NCUA and BFI.
“The board was concerned about apparent non-adherence to policies and procedures and made the decision to place the credit union manager and two additional employees on administrative leave immediately,” the statement read. “The board is committed to working closely with the NCUA and the BFI and is meeting with their representatives daily. We anticipate they will be onsite for a period of time gathering information.”
The Lynchburg Police Department was not contacted about the incident, a police spokesperson said on Monday.
The credit union will remain open to serve its 2,926 members who are primarily employees of Centra Medical Group in Lynchburg, a multi-specialty clinic that includes a network of local family practices, primary care physicians, as well as medical and surgical specialists.
A phone message seeking comment from Centra Medical Group was not returned.
Although the board did not name the employees placed on administrative leave, Rawes is listed by the NCUA as the current manager/CEO. Neither Rawes nor board President Kimberly Price responded to LinkedIn messages seeking comment.
The NCUA and BFI said they would not comment.
According to Centra Health’s IRS Form 990 documents for 2013, Rawes was paid an annual salary of $36,000. She is identified, however, as a branch manager. Another employee, also identified as a branch manager, was paid an annual salary of $38,000, according to the Form 990 documents.
Centra Health was designated as a well-capitalized cooperative, according to its latest NCUA Call Report filed in September 2014.
At the end of 2013, the credit union’s net worth was 15.82%, above peer average of 12.47%. But at the end of the third quarter of 2014, its net worth dropped to 13.84%, according to NCUA financial performance reports.
Centra Health’s ROA was 0.60%, above peer average of 0.26%. However, it posted a delinquent loans ratio of 1.31%, well above peer average of 0.65%, and a net charge offs ratio of 1.06%, also above peer average of 0.44%, at the end of the third quarter in 2014.
The credit union also posted a net interest margin ratio of 2.44%, below peer average of 3.02%, as of September 2014.