One of the ways Sperry Associates Federal Credit Union isplanning to get back on track is by beefing up its electronicmarketing efforts.

The $345 million credit union in Garden City Park, N.Y., mostrecently did not renew the contracts of its interim president and ahuman resources consultant because Sperry's board of directors, inagreement with the NCUA, felt that permanent solutions were needed,said James Duffett, interim co-president. Each of these roles hadbeen filled for an extended period on an interim and consultingbasis, respectively. The positions themselves were noteliminated.

On May 28, the NCUA entered into a letter of understanding andagreement with Sperry to correct several problems, including creditlosses associated with three private-label collateralized mortgageobligations. According to the NCUA, the large losses indicated thatthe credit union had not been performing proper due diligence overits participation lending program. It also granted loanmodifications without a board-approved policy or managerialprocedure in place, the agency discovered.

Last week, Sperry announced it had eliminated its director ofcorporate development, business development manager and branchmanager positions. Corporate development was an umbrella formarketing, business development and business services and lending.Duffett stressed that the job cuts were part of a “restructure[that] was done to address changing priorities, and not anindication of the performance of the people impacted.” Sperry has42 employees and serves more than 19,000 members.

“We have eliminated several positions as part of our agreementwith the NCUA to streamline operational costs, and eliminate excessspending, while focusing on capital restoration,” Duffett said.

Duffett said Sperry's priorities are to successfully implementits net worth restoration plan, reduce operating expenses, andimprove and deepen member relationships. The credit union hascreated a new position, member service manager, to aid with serviceefforts. Marketing will continue to be a key area for Sperry.

“The reduced budget will mean that we have to make the most ofelectronic marketing opportunities, which is a strength of ours. Ibelieve that we are one of the few credit unions that employs adedicated electronic marketing specialist,” Duffett said.

Sperry does not anticipate any additional layoffs orterminations of full time employees, Duffett added. “However, innoting this, it is important to stress that we cannot alwayspredict what will happen in the future.”

The next steps for the company, Duffett said, will include a“disciplined adherence to the restoration plan short-term and afive-year plan to transform Sperry into a credit union withstate-of-the-art products and technology and superior service thatcaters to members who define convenience as banking anywhere at anytime.”

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