Ray Birch

For credit unions to succeed into today's choppy financial waters, it's not a bad idea for leaders to embody traits of former President Dwight D. Eisenhower.

As its new name implied, Western Bridge Corporate FCU was designed to be a short-term bridge to something new — ideally, a new corporate capitalized by member credit unions — that was made up of something old: most of WesCorp's operations.

NCUA board member Michael Fryzel describes the mood and the thinking at NCUA in the months leading up to the conservatorship of WesCorp and U.S. Central, and shares how quickly concerns over WesCorp turned to full-fledged recognition there were significant problems and conservatorship was the only option.

Not until Feb. 26, 2009, did discussion about real trouble at WesCorp begin in the NCUA boardroom. That's when it was brought to the board's attention that expected losses at WesCorp were well ahead of the corporate's $2-billion capital position.

Phil Perkins shouldered the task of guiding WesCorp FCU after NCUA conserved the former $32-billion corporate giant. He talked with Credit Union Journal about his experiences at WesCorp/Western Bridge.

Credit Union Journal filed a Freedom of Information Act request with NCUA on Dec. 11, 2011 and as part of that request asked for minutes from NCUA board meetings from January 2007 through September 2011, in which WesCorp/Western Bridge was discussed.

Credit unions that stayed the course with underwriting-never moving to any extremes before, during and after the recession-are benefitting today, asserts Tommy Cobb, CEO of Tuscaloosa CU.

When times become difficult, the importance of effective communication becomes that much clearer.

One thing the recession teaches you, insists Niagara County's FCU, is that you can't make it through a downturn without some difficult choices.

The recession taught CUs some tough lessons, but none likely more difficult than improving efficiencies and right-sizing staff, according Troy Garvin, CEO of Omega FCU.

Michigan First grew assets by more than $140 million during the recession and its CEO attributes the steady climb to not over-reacting to problems right in front of the credit union.

Credit unions have become much better managers of their own business and market footprints during the last four years, according to Shazia Manus, CEO of The Members Group.

As other financial institutions have outsourced service centers-including many big banks going with overseas resources to save money during the recession-the $41-million Jamestown Area Community FCU has not cut back on member support and continues to promote its local service.

Stan Hollen believes credit unions came out of the recession minding the store better and paying closer attention to controlling expenses.

Better loss forecasting and deeper member relationships are two big benefits of the recession, according to Bill Handel.

When many financial institutions surrounding the small Dynamic FCU began tightening its underwriting a few years ago, the $23-million CU decided to keep loan policies the same and let the community know it had money to lend.

Greece Community FCU had to look around for ways to further reduce costs, and during 2008-2009 especially, it learned there were still many avenues to pursue.

The recession prompted GPO FCU to change its mission statement and focus on saving members even more money.

Thanks to the recession, credit unions are now much better mangers of bankruptcies, while underwriting is even more sound.

Belt tightening during the recession has led to fewer CUs underestimating the impact of fraud.