Three months after Kyle Markland suddenly resigned as president/CEO of the $1.7 billion Affinity Plus Federal Credit Union, Dave Larson has been named the new president/CEO, the cooperative said Thursday.
Larson had been serving in an interim role since Markland resigned from the St. Paul, Minn., credit union on Aug. 28 after 16 years of service.
Larson has been with Affinity Plus since 2002, last serving as senior vice president before being named the interim president/CEO, the credit union said.
“I am extremely honored to be offered this incredible opportunity,” Larson said in a statement. “I have always had a strong passion for Affinity Plus, our members and employees, and will leverage this passion as CEO to continue to put people’s needs at the heart of all that we do.”
Since joining Affinity Plus, Larson “has exemplified a dedication to the organization and its employees that is unique in today’s business culture, said Connie M. Roehrich, Affinity Plus board chair.
“He is committed to a member-first philosophy that the board values and respects, and when combined with his track record of integrity, transparency and ability to communicate clearly, Dave is the best candidate to lead Affinity Plus into the future,” Roehrich said.
As Affinity Plus’ new CEO, Larson’s priorities include improving the member and employee experience while continuing the credit union’s “members-first” approach, according to the credit union.
Larson will also continue to be integral in forging strong community relationships with organizations that have similar missions, promoting the cooperative spirit of Affinity Plus, and supporting the credit union movement as a whole, Affinity Plus said.
According to the credit union, Larson’s passion for helping people and the broader community is further evidenced by his involvement in establishing a partnership between Affinity Plus and Children’s Hospitals and Clinics of Minnesota.
He also acts as executive director of the Affinity Plus Foundation, which awards more than $20,000 annually in scholarships for students, and sits on the board of the Minnesota Credit Union Foundation.
“I want to thank my board for their phenomenal support over the past three months,” Larson said. “But, perhaps even more incredible has been our employees. The support and belief they have shared about our future together has been truly humbling.”
Larson’s permanent role comes after Markland’s abrupt resignation after taking the helm of Affinity Plus in 1997. The credit union said his departure was prompted by empty nest syndrome after his second child, a son, recently went off to college.
Markland was named Credit Union Times’ 2012 Trailblazer CEO of the Year.
Affinity Plus’ third quarter financials revealed a number of financial management strategy shifts that resulted in a 55.1% annualized drop in net income as of Sept. 30. Net income dropped from $4.6 million as of June 30 to $3.1 million as of Sept. 30.
Driving the income drain was a 12.7% increase in provision for loan and lease losses after delinquent loans increased 23.5% to $16.5 million in the third quarter. However, as delinquencies increased, the credit union's charge off ratio dropped five basis points, resulting in an aggregate 11 basis points slide in Affinity Plus’ loan quality index.
The credit union also reported nearly $1 million in non-operating expense during the third quarter, further depressing net income.