A small Portland credit union that won industry credit forundertaking voluntary PCA three years ago and rebounding in 2012,received new accolades Thursday from an Oregon regulator as anexample of what good communication and dialogue can achieve withexaminers.

“Yes, their management was caught off guard by what had happenedbut they did listen to what we had to say and were willing tocommunicate,” Janet Powell, program manager for Oregon's Divisionof Finance and Corporate Securities, said of the $85 million PointWest CU.

Point West celebrated its recovery last week from a near2008-2009 failure when it got into trouble over problem loans andchargeoff record keeping.

A regulatory clampdown triggered an NCUA five-year financialrestoration plan and recovery package that led to $1.1 million inprofit last year and an increase in net worth from 3.68% inNovember 2009 to the current 6.05%. A year ago Point Westlost $123,000.

“The pair of CEOs at Point West took the process seriously fromthe start, got the advice they needed on making a plan, and it hasworked so far,” Powell said.

Powell was among officials recognized at the May 1 annualmeeting of Point West used by its dual CEOs, Amy Nelson and NickHodson, as a platform to herald the credit union's financialrecovery.

Powell said her office conducted dual exams with the NCUA andmet quarterly with Nelson and Hodson to monitor progress on therestoration package. She added that Point West “did the right thingin closing a branch on their own, eliminating staff, reducing riskand improving collections.”

“They've accomplished a lot,” she said, adding that she wouldlike to see the credit union's net worth ideally reach 8%.

The Oregon regulator said also she is familiar with industrycomplaints about examiner practices. “Good contacts andcooperation is the key,” she said.

Regarding the NCUA, she said she realizes negative behavior canoccur, sometimes related to inexperience.

“So much needs to be done, there is less energy” on the part ofcredit union managers, she said adding, such scenarios can beovercome “if everyone does a better job of listening.”