LEXINGTON, Ken. -- David Kennedy was selected by the board ofdirectors at the University of Kentucky Federal Credit Union hereto be its new CEO.

Kennedy's first CEO position comes after a 17-year career incredit unions, most recently as senior executive of businessdevelopment for SELCO Community Credit Union and president/COO ofSELCO Group, Inc., SELCO's CUSO in Eugene, Oregon. While there heserved on the Credit Union Association of Oregon's AdvocacyCommittee and was a longstanding director of NACUSO.

He holds a bachelors degree from California Baptist Universityand an MBA in finance from California State University, SanBernardino.

"I love a university environment," Kennedy told Credit UnionTimes. "I've lived and worked in a college town my entire life.It's exciting, engaging, intellectually stimulating and a greatplace to raise kids." Kennedy's wife Pam and two children, aged 8and 10 will join him at the end of the school year, he said.

"I am thrilled with the organization's commitment to memberservice and financial education," he said of UKFCU. "When youcombine that with the growth that's happening in Lexington rightnow, the potential is amazing." The CU has assets of $227 millionand has 114 employees to serve 40,000 members throughout afive-branch service area including one on campus in Lexington andone on the campus of Eastern Kentucky University.

Going cross-country from the Pacific Northwest to Horse countrymight seem to make for a culture shock of sorts, but Kennedy said"I love it here and the countryside is beautiful, the people areopen and friendly and I'm ready for the challenge of making thisalready great credit union grow in ways that complement thesurrounding area." That area includes major employers in healthcare and education and a new Toyota plant in Georgetown, only20-miles away. "Everyone knows about the nearby horse farms and theKentucky Derby, of course, and there are some very underservedareas too, like the coal mining areas, but there is a lot more tothis state than that," said Kennedy.

Lisa Hamm from HRX, the Florida CU League's recruitment arm,recommended Kennedy. He'd been looking around for just the rightjob and when this opportunity came up. He looked into it because itreminded him of a CU where he got his start. That was Riverside CU,which then had $50 million in assets and was growing fast. Kennedysaid its assets were about $230 million when it later merged withanother CU. "I think we're on a similar pace here and most of itwill come from our core groups, which are schools and facultybecause we not a community charter. It's about the penetration ofthe market through business development and marketing to our SEGsto increase our wallet share. It was that opportunity that drew mehere for an interview and it all just clicked after that."

Kennedy said that a good rapport with the board was essential toa new CEO about to embark on growing the CU by ramping up ecommerceand making inroads to Gen X and Gen Y members and playing a biggerrole in the community. "We already have a bit of an advantagebecause the average age of our members is less than most CUs, at47. And we're well placed because we already have theinfrastructure in place, so I'll be concentrating on new productsand delivery."

Top 20 Research University Drive

In 1997, the state of Kentucky mandated higher education reformsand as a part of that, the University determined to become a Top 20public research university. In April, the UK Board of Trusteesapproved a major package of new benefits that include constructionof two on-campus child-care centers, increased professionaldevelopment and career training for employees and expansion of anemployee's tuition benefit to offer a tuition discount to a spouse,a partner, a child or dependent. It also included domestic partnerbenefits for unmarried couples, both opposite-sex and same-sex. TheUK board's human resources committee approved the benefits package4-0. The benefits go into effect on July 1.

The move was not without opposition from Gov. Ernie Fletcher(R), who is seeking re-election. He may include a proposed ban ondomestic partner benefits in a special session of the GeneralAssembly. But Wally Skiba, the UKFCU's chairmam, who headed UK'shuman resources department for many years noted, "Any business hasto do what it must to be competitive. I see it as just keeping upwith progress. It's about evolving."

The credit union will simply follow the lead of the universityin determining what benefits package is offered, he said. Skiba wassimilarly matter-of-fact about Kennedy being the right person tolead the CU to what he called "the next level. We started in 1984with about $6 million and now we're at $237. I think Dave's diverseexperience will help us meet our full potential. We have astatewide influence because our FOM includes all community collegesand technical schools, so there is ample room to grow." The UKFCU'snew building won a state design award, he said proudly. "Inside,its like a sports arena."

Paying it Forward

Kennedy gave ample credit for his readiness to lead a CU to hisgood friend and mentor Ava Milosevich, who recently retired fromSELCO CU. "I credit her with my being here now. I learned so muchfrom her and I hope to bring the culture she set up at SELCO herebecause from my perspective, she had the best blend of know how todrive growth and get financial results while allowing people todevelop. We had that conversation some two years ago, when she toldme, 'I know I'm going to lose you one day, and when you're ready,you'll be a great leader.' It's a unique skill, mentoring someone,and I'm blessed to have had Ava. I hope someone will feel that wayabout me someday. From my perspective, Ava's a treasure to the CUworld."

Milosevich demurred about being a treasure, but said, "David isa good guy and has lots of potential for greatness. He's a solid CUprofessional and he understands the value proposition that CUSOsbring to the whole of the CU business. He's all about possibilitiesand creating for the future. It was great working with David atSELCO."
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