LAS VEGAS — Credit unions here got their first chance to meet with the acting CEO of WesCorp, which was placed into conservatorship by NCUA earlier this year, and to get an update on what the corporate is doing to right the ship.
During a town hall meeting hosted by WesCorp and held at the offices of Silver State Schools Credit Union last week, approximately 20 credit union executives were briefed on WesCorp's plans to emerge from conservatorship.
Requests by Credit Union Journal to attend the meeting were denied.
Among those on hand was CEO Phil Perkins, who was picked by NCUA to replace the ousted Bob Siravo. Dan Paulson, president and CEO of WestStar CU, based here, characterized the meeting as "pretty positive." "The meeting went very well," he told Credit Union Journal. "[WesCorp representatives] went over its investment portfolio and the reason for the problem, which we already knew. They also discussed how they were cutting expenses to help the balance sheet."
Also on hand from WesCorp were its new CIO, Joe DeMichele, SVP/CFO Jim Hayes, and VP-Economic and Market Research Dwight Johnston.
Paulson said he came away from the meeting generally impressed with the new CEO. "(Perkins) is a really sharp individual. Overall the meeting was pretty positive. WesCorp does have negative capital, and they didn't say what they are going to do to deal with that. As far as the corporate is concerned, we really need it there.
"The communication was good, and it was good to see they have smart people at the top," Paulson continued. "They did a good job of explaining the issues relating to the investment portfolio. We all are licking our wounds from taking a financial hit, but at least we are still doing business with them and that's a good thing."
Those financial hits are likely to continue. Paulson said Dwight Johnston offered an economic forecast that was "good and bad." "He said we'll see foreclosures for the next year or two, then values will start coming up a little bit."
The meeting here is one of eight similar town halls being hosted by WesCorp in various states, the last of which is June 9 at HawaiiUSA FCU in Honolulu.
