SUITLAND, Md. — Most of the parties involved continue to be tightlipped as to why Michael Hale unexpectedly left his president/CEO post at Andrews Federal Credit Union on Dec. 19.

Hale had served at the helm of the $808 million credit union since 1996. An Andrews FCU employee confirmed with Credit Union Times on Jan. 4 that Hale did leave but would not provide any further details.

“It is in fact true,” the employee said. “I'm not allowed to release any further details on his leaving.”

The employee did confirm that Deborah Matz, chief operating officer at Andrews FCU, has been named the interim CEO “for the time being.” Matz previously served on NCUA's board before being hired by the credit union in April 2006.

In a Jan. 5 e-mailed statement, Ruby DeMesme, chairman of Andrews FCU's board wrote, “Michael Hale resigned from Andrews Federal Credit Union on December 19, 2007 after more than 12 years as president/CEO. The Board is conducting a search for his replacement. The Board wishes Mr. Hale success in his future endeavors.”

DeMesme did not respond to questions about the circumstances of Hale's sudden departure. Hale also did not want to discuss details choosing instead to focus on how proud he is of the strides Andrews FCU has made.

“Clearly, we accomplished a lot,” Hale told Credit Union Times. “I do wish the organization well. The employees were dear to me. The members are what it's all about.”

Hale, who had served as CEO of Arizona FCU and Detroit FCU prior to Andrews, said he “hasn't had a break in over 30 years” and is “taking this time to relax and be introspective.” He said he's impressed and humbled by the “outpouring of people” who have called him with jobs and consulting offers. Hale said he has not ruled out becoming CEO of another credit union.

“Admittedly, it's a nice break. I plan to come out renewed and excited,” Hale said.

Considered one of the more visible leaders in the industry, Hale has served on numerous boards including CUES, Filene Research Institute, and, in May 2007, was named vice chairman of PSCU Financial Services' board. In August 2007, Hale announced that he would no longer serve on the African-American Credit Union Coalition's board after helping to form the organization in 1999 so that “new, young blood” could bring fresh perspectives to the group. Hale said he would have to give up his current board seats since many of them have a CEO requirement.

Andrews FCU was founded in 1948 to serve the personnel of what would later be known as Andrews Air Force Base. For nearly 60 years, the credit union has grown to also serve the personnel at McGuire Air Force Base in New Jersey and U.S. servicepersons in central Germany, Belgium, and the Netherlands as well as many select employee groups in Maryland and New Jersey.

Under Hale's tenure, the credit union expanded its reach within Washington and Maryland. In, 2003 Andrews FCU expanded its charter to the entire District of Columbia–the first credit union to do so. A new branch is scheduled to open in Waldorf, Md. in early 2008. A partnership with One Economy, a national nonprofit organization, brought low-cost Internet access to moderate-income families in the Henson Ridge and East of the River neighborhoods of Southeast Washington. Andrews has also expanded its surcharge-free ATM network through Allpoint and launched its Horizon member loyalty program.

A look at NCUA's Financial Performance Report-Ratio Analysis for the period ending Sept. 30, 2007 — the latest data on record — showed that Andrews was well ahead of its peer average in operating income/gross expenses at 70.76% compared to 44.04% for peers. Loan growth was also higher at 20.41% as compared with the 8.41% peer average. Regular shares plus share drafts and total shares and borrowing was 60.48% at the end of September while the peer average was 34.01%.

However, Andrews lagged behind in other areas compared to its peers: for instance, its loan-to-share ratio was 58.82% versus its peers at 84.35%. Andrews' total loans and assets were 40.16% and 70.60% for peers. And at 1.21%, growth in net worth to total assets fell behind the 7.92% peer average. Like many other credit unions, Andrews' membership growth mirrored the single digit trend the industry has experienced for quite some time: negative 2.10% compared to 4.40% for Andrews' peers.

Meanwhile, Hale said his CEO roles at three credit unions have taught him “there is no cookie cutter approach to leadership.”

“It's taught me that you have to be in a constant state of evolution,” Hale said. “You take the experiences you have and build onto new approaches. You don't want to get so tied to the past that you are not aware of the changes in the organization.”

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