After taking a leave of absence in January as president/CEO of the $1.7 billion GTE Financial Federal Credit Union, Joe Brancucci said he officially retired Wednesday.

“It was a very intense six years, the credit union was challenged when I got there in 2010 and it's been a very stressful six years, and it's time for me to do something else,” the 65-year-old Brancucci said in an exclusive interview with CU Times Wednesday. “Sometimes you just have to take a break.”

Brian Best, GTE Financial's executive vice president and chief experience officer, who was appointed the acting president/CEO, confirmed Brancucci's retirement effective March 9.

“We wish him all of the very best,” he said.

Best declined to comment on whether the board plans to appoint a search committee for a new leader.

Brancucci said he retired on his own terms.

In January, however, Brancucci and the GTE Financial board of directors mutually agreed that he take a leave of absence to allow the board to conduct a review.

Michael D. Lozoff, the credit union's attorney in Miami, said that he was not at liberty to specify what the board was reviewing, but he gave assurances that it was not related to any financial issues.

“I hadn't taken a lot of time off in the years that I had been there and it was mutually acceptable that we needed to have some time to work out some challenges, and I needed to work on some personal challenges, and that's where we stood,” Brancucci said.

Brancucci did not elaborate on what those challenges were.

“I'm not going to address the rumors. The rumors are irrelevant to me,” he added. “I know the facts. The board knows the facts. I have decided to retire. The board accepted that decision. And we had to deal with this to make sure it had the least impact on the members, the employees, the credit union, and that's where we are today. I'm happy with the decision. They're fine with the decision. Everyone is on the same wave length here.”

Brancucci said he had been in discussions with the board about his retirement for more than a week.

“Everyone will agree in the industry that [GTE Financial] was a very big challenge to take on [in 2010], he said. “We were very successful. We built a great team, a team that I have the utmost confidence in.”

“It is time for the CEO of the future to take it to the next level,” he said. “I am not the CEO of the future at my age obviously. I'm very proud of what we accomplished. I'm very proud with the way the board has acted on this issue. I'm very proud of the management team. And I think it is the right time for all involved to move to the next level.”

During his leave of absence, Brancucci said he had the time to think and communicate with the board on the issues that were challenging to him.

“In reality you have to look at the fact that the credit union is healthy, vital, relevant to the community, and it needs a leader, in my opinion, that is going to be there for the next 10, 15 or 20 years,” he explained. “That is pushing it for someone who is 65 years old. I think it is the right time for the board to select the leader of the future. I think it is positioned incredibly well for the future. I think you are going to see great things from GTE Financial. I have all the confidence in that.”

He indicated that he plans to stay involved in the credit union industry in some executive capacity, but would not be specific and would not say if he has received any offers from other credit unions.

“I've had a great career up until this point and I will continue to have a great career,” he said. “I will decide what I want to do next. The next thing is that I am going to look for something where someone needs a three or five or seven year CEO to do a similar kind of thing, if I decide that is what I want to do.”

For now, Brancucci said he is going to take it easy and enjoy himself by spending time with his family and friends, something he hasn't had the opportunity to do very often over the last six years.

Although Brancucci has officially retired, his photo still appeared on GTE's Financial's home page at 2 p.m. Eastern Time Wednesday.

“Sometimes details don't get taken care of quickly,” he laughed.

Brancucci was appointed president/CEO of GTE Financial in July 2010.

During his tenure, loan production increased from $1 billion in 2011 to $1.4 billion in 2015. Net income rose from $3.9 million in 2011 to $9 million in 2015, according to NCUA financial performance reports.

Though the credit union's net worth was 8.01% at the end of 2015, it was below the peer average of 10.98%. Its ROAA was 0.53% in 2015, below the peer average of 0.76%.

Additionally, GTE Financial's loan quality index was 2.58%, considerably higher than the peer average of 1.13% at the end of 2015, according to the NCUA's financial performance reports.

Before joining the credit union, he worked as executive chair and founder of Prima Alliance Solutions Inc. for 13 years, and served as COO for the $14.4 billion Boeing Employees Credit Union in Tukwila, Wash. for 15 years.

Instant Insights /

GTE Financial CEO Retires After Leave of Absence

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