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

The striking disclosure of eliminating five positions including chief financial officer and undergoing "a total re-evaluation and restructuring of the organization" follows an $11 million loss in 2008, chiefly due to securities writedowns.

Despite the difficulties of last year, the Memphis CU "is reporting $450,000 in profit for the first two quarters," declared Maria McLendon, assistant vice president-marketing. She also acknowledged the search for a new CEO to replace Carlos Webb, who resigned in April.

Serving as interim CEO is Dwight Burgess, vice president of operations, with five positions eliminated "during the week of June 22" including vice presidents of lending, community affairs, the CUSO, liabilities as well as chief financial officer, said McLendon.

Press reports in Memphis that the NCUA and the Tennessee Department of Financial Institutions had ordered MATCU to downsize its 250-employee ranks "are not accurate" but that the CU "does follow recommendations" of the agency, she said. The chairman of MATCU, James Hayslip, had been quoted in the Memphis Commercial Appeal as also acknowledging the need for the CU to "reorganize" and streamline its management.

He also noted that certain bond purchases, which were not identified had "backfired on us."

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

Instant Insights /

In Shakeup, Memphis Area Teachers Cuts Five Management Jobs, Seeks CEO

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