MIRAMAR, Fla. – The fall-out from last year’s huge losses among some credit unions continued today with the resignation of Eastern Florida Financial CU President and CEO Stephen McGill, after Eastern Financial reported one of the largest losses ever for a credit union in 2007.
The resignation comes after Florida’s third largest credit union reported a $50 million loss for the fourth quarter, and $45.2 million for the year. The credit union lost almost $500 million in assets over the past 12 months, to $1.8 billion, and net capital has fallen to levels inviting regulatory supervision.
Eastern Financial announced that Gary Lanier, its senior vice president of sales and member service, and James Pavlonnis, senior vice president of finance and administration, will assume interim duties and report to the board of directors' executive committee while the credit union conducts a search for a new president and CEO.
The credit union, which originally served employees of now-defunct Eastern Airlines but now serves over 1,000 select groups, reported large losses in its real estate loan portfolio and is working to recoup some of a $30 million commercial real estate loan it made to a failed condominium project in West Palm Beach.
The $45.2 million annual loss is the third largest loss ever for a credit union, exceeded only by the $61 million in losses reported by Cal State 9 CU, which was taken over by regulators last year, and by Huron River Area FCU, which reported a $59 million loss before being liquidated by NCUA last year.
