CEO at First Northern in Chicago Departs

CHICAGO – The $246 million First Northern Credit Union, which in the first quarter saw a $700,000 drop in net income, is operating with an interim CEO this month following the April departure of William J. Arnold, its president and a 29-year CU veteran. "It would be premature for me to comment now on Mr. Arnold," said the chairman of First Northern, James Poskozim, a retired attorney, suggesting the CU might have more to say within a month. It was learned that Arnold and another manager, who was not identified, were being let go with negotiations on Arnold's separation being handled as part of "an amicable agreement." State regulatory officials said they had been informed by the CU of a "management change" and that First Northern was being "monitored" routinely as part of any CEO switch. Serving as interim CEO is Ed Berg, executive vice president. Calls to First Northern referred queries to Berg with a mention that Arnold "no longer works here." However, it was understood Arnold remains an employee of the CU until an agreement is worked out and that a search committee has been formed by the board for a new CEO. Attempts to reach Arnold were unsuccessful. First Northern, with 28,000 members and SEG-based, has a diversified membership composed of employees from Exelon Corp. the holding company for the Chicago utility, Commonwealth Edison. Poskozim, a retired Commonwealth Edison attorney and an executive with QuinStreet, a Lincolnshire, Ill internet marketing firm, acknowledged the net income drop but said he simply would not comment on the reasons. The $700,000 drop compares to a $54,325 gain for the same period a year ago, noted an analyst for Callahan & Associates. The CU "did have a huge non-operating loss of $835,000 in the first quarter" accounting in large part for the net income drop, said the analyst. A spokesman for the Illinois Credit Union League said Arnold in April completed a term as a director of the ICUL Service Corp.