On the heels of a sweeping management shakeup, the $545 MemphisArea Teachers Credit Union, the largest in that city, confirmedFriday it is conducting a search for a new CEO as it puts behind"paper" investment losses from last year and finds itself on aprofitable path in 2009.

The striking disclosure of eliminating five positions includingchief financial officer and undergoing "a total re-evaluation andrestructuring of the organization" follows an $11 million loss in2008, chiefly due to securities writedowns.

Despite the difficulties of last year, the Memphis CU "isreporting $450,000 in profit for the first two quarters," declaredMaria McLendon, assistant vice president-marketing. She alsoacknowledged the search for a new CEO to replace Carlos Webb, whoresigned in April.

Serving as interim CEO is Dwight Burgess, vice president ofoperations, with five positions eliminated "during the week of June22" including vice presidents of lending, community affairs, theCUSO, liabilities as well as chief financial officer, saidMcLendon.

Press reports in Memphis that the NCUA and the TennesseeDepartment of Financial Institutions had ordered MATCU to downsizeits 250-employee ranks "are not accurate" but that the CU "doesfollow recommendations" of the agency, she said. The chairman ofMATCU, James Hayslip, had been quoted in the Memphis CommercialAppeal as also acknowledging the need for the CU to"reorganize" and streamline its management.

He also noted that certain bond purchases, which were notidentified had "backfired on us."

Officials of the Tennessee Department of Financial Institutionswere not immediately available for comment.