The $85 million Point West Credit Union of Portland, Ore., ismore than willing to broadcast and celebrate its tale of comingback from the brink of a 2008 financial collapse.

The message about how a 10,000-member, multi-SEG credit union,down on its luck during metro Portland's deep recession and fallingunder NCUA prompt corrective action orders, took a number ofpainful steps to save the credit union from failure or merger hasbecome the hot topic within the Northwest Credit Union Association.

The Point West financial restoration saga, as it is known, hasquirky elements as well as lessons learned, not the least of whichis that the credit union managed to overcome its challenges andregain new business under the reins of co-CEOs.

The two Point West heads, Amy Nelson, its chief operationsofficer, and Nick Hodson, chief financial officer , both 39,formally took over the Point West helm last September and ended2011 with $1.1 million in profit after the credit union lost$123,000 the year before.

The turnabout also saw a climb in net worth to 6.05%, the firsttime it was above 6% since December 2008 and two years ahead ofschedule. At one of its low points in November 2009, Point West,which serves county and government workers, was operating at 3.68%and was closing a branch, laying off employees and sharply cuttingexpenses to meet requirements of a five-year financial restorationplan.

“For sure, both Nick and I could not have brought Point West towhere we are today without the truly collaborative effort wereceived from our board and the stakeholders in the credit unioncommunity of Oregon,” said Nelson, who identified that group notonly as peer CEOs but also vendors, outside consultants and stateand federal regulatory teams.

Nelson, who joined Point West as a training/education manager in2007, and Hodson, coming on board as an assistant controller in2004, have said they realized once they stepped into seniormanagement jobs, trouble was brewing for their credit union ondelinquencies and large loan losses.

“We knew we needed to find our way through special partnershipsto help us with our own learning curve,” said  Hodson.

“We knew very little about how to write a long-term financialrestoration plan and thank goodness Pat Smith and others offeredhelp,” he said.

Smith is the CEO of the $901 million Unitus Community CreditUnion of Portland, who in providing guidance to Nelson and Hodsonassisted not only with the restoration required under NCUA rulesbut also on a host of duties, including internal operations andstrategic planning.

Smith has maintained the job was made easy because of theattitudes of Nelson and Hodson “and because of their energy, theirsupport for the credit union mission and the way the two of themhad obviously grown into their jobs.” 

“They both seemed to have a rather quick learning curve,” saidSmith, who also helped on board communications and what she calleda template set of tools to assist a CEO in learning how tomanage.

A consultant hired for the turnaround, Thomas Glatt Jr. whoheads up his own Wilmington, N.C., firm, said while a co-CEOpartnership is rare, he pushed for the concept after finding “theirskills so perfectly suited to this particular set ofcircumstances.” The duo “could address the most importantrequirements of net worth recovery: gaining staff buy-in andcommitment and delving into the minutiae of the financials touncover cost savings and new revenue,” he said.

Nelson, said Glatt, had extensive H.R. and staff developmentexperience, while Hodson had deep understanding of thefinancials.

“What really works for this co-CEO partnership is that, asequals, they can challenge and question the judgment of the other,”said Glatt. “This leads to constructive, dialogue-producinginteractions. Most CEOs don't have or, in many cases, allow anyoneto challenge them with regard to key decisions.”

The chairman of Point West, John Savory, owner of an officesupply business, agrees that the Nelson-Hodson CEO combination is asuccess even though some board members were skeptical, agreeing toan initial interim trial period.

“These two are superstars, and we've seen how capable they are,”declared Savory. recalling problems four years ago when PointWest's loan problems first surfaced from what he called “proceduraldeficiencies” uncovered among former employees.

“It turned out there was improper paperwork on charge-offs,”said Savory. That resulted in write- downs and eventual closing ofa branch and a slashing of the payroll from 57 employees to29  over a two-year period.

“I'd call the work by the entire staff as heroic,” said Savorywho led the May 1 meeting, which feted civic leaders and Oregoncredit union executives who, according to Nelson, “gave us love andinspiration in addition to sharing resources.”

Smith of Unitus was unable to make it to the annual meeting butpraised the CEO duo for their passion and can-do spirit, adding “somuch has to be said for the respect and support they have for oneanother, all part of the keys for their success.” 

In reporting on the Point West annual meeting, the NWCUA citedCEO help lent over the years from an array of credit unions,including Unitus, OnPoint, Oregonians, MaPs, Consolidated Communityand Advantis. Also mentioned was the top staff of NWCUA, includingits president, Troy Stang, the former CEO of the Credit UnionAssociation of Oregon.

The Point West co-CEOs also claim the credit union's comeback isrelated to a 88% member loyalty rating and high marks forservice.