PALO ALTO, Calif. – Steve Lumm says he's leaving while Addison Avenue Federal Credit Union has grown into one of the most formidable financial players in the industry.
Lumm, 63, recently announced that after nearly 12 years at the helm, he will retire at the end of the year. During his tenure, Addison Avenue went from $480 million in assets to $1.8 billion today. More than 126,000 members now have access to 25 branches in 21 communities. "As proud as I am of Addison Avenue's financial growth, I am just as pleased that we are now ranked second out of 35 Bay Area credit unions in customer satisfaction," Lumm said. "I know that our staff and management will continue this dedication to our members' needs long after my retirement." Many members are employees at Hewlett-Packard Co., the credit union's original sponsor. An even larger segment of the field of membership has helped Addison Avenue Financial Partners, the credit union's investment division, flourish on several levels. Lumm was instrumental in helping the division get its start. Today, it manages $1.7 billion in assets and is considered to be one of the more progressive entities in the credit union industry. In February, Addison Avenue bought Essex National Securities, Inc. an investment services broker/dealer. Lumm said he attributes the credit union's success to the people and the members and will miss them the most. "The staff deserves a lot of credit for what we've been able to accomplish," said Lumm, who had previously served on the credit union's supervisory committee and board of directors. "We have a very financially savvy membership through Hewlett-Packard." For many members, that savvy has come forth in the midst of the downturns and turmoil that have plagued the computer industry, Lumm said. Helping to ease as least some of the pain after layoffs and other unexpected career changes were the investment representatives. "It's been tough for HP employees so it's a blessing to be able to help them," Lumm said. Over the last decade, Addison Avenue's strengths have partly come from the addition of new products and services especially on the technology side with call centers, online banking and bill payment, Lumm said. A recent incident, however, put the credit union in an unexpected light. In March, Entrust, Inc. filed a patent infringement lawsuit against Addison Avenue on the grounds that the credit union had deployed an authentication solution for its customers, which Entrust considers an infringement on its grid authentication patent. Entrust said it holds a patent on this technology, and the credit union had deployed this technology without license from the company.
On the matter, Lumm would only say "the legal process is underway."
Recommended For You
Meanwhile, the credit union is moving forward with its "aggressive plans" to cap off the year. Addison Avenue recently completed a merger with a credit union that serves employees at Englewood, Colo.-based CH2M HILL. Lumm said partnerships with more companies are expected. While the credit union has branches in communities where current members live, there are no plans to convert to a community charter or a bank, Lumm emphasized.
"As an organization, we stay very focused on supporting single sponsors," he said. "We want to have a nationwide footprint and bring in other companies with that same mission."
That's one way Addison Avenue plans to stay competitive, but for the industry as a whole, it's all about affinity. "How do you create affinity with the member," Lumm offered. "Credit unions will stay relevant as long as members see that there is a reason to join." And then there are "all sorts of sub questions" around issues like taxation, growth strategies and being profitable while still adequately serving members, but Lumm said all of those are tied to building affinity. Over the years, he's seen credit unions collaborate more, which he considers "a real strength" for the industry. The ability to adapt and not be nervous about bringing on new products and services has also provided value, from a member's point of view, he added. Addison Avenue has already retained Brisbane, Calif.-based O'Rourke Career Connections to conduct the search for its new president/CEO. Lumm said he's looking at January 1, 2007 as his official retirement date but that could change depending on how quickly a successor is found. A father and grandfather, Lumm said he and his wife are considering a move to the San Luis Obispo area, a coastal community his son recently moved to. On his decision to retire, Lumm said the "time was right" and he is looking forward to "doing other projects." "This is a fabulous industry to be a part of," Lumm said. "The philosophy around people helping people and the focus on members and what you're trying to provide for them, it's a great industry to be a part of." -
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
