SAN DIEGO – John Tippets, who retired as CEO of American Airlines FCU in 2008 only to un-retire in 2009 to try and lead deeply troubled North Island Financial CU back to solvency, is retiring again after putting the one-time $1.8 billion credit union back on solid ground.
The 71-year-old Tippets, who headed the Texas credit union giant for 18 years before his 2008 retirement, agreed to come back and work out the ailing San Diego credit union after it racked up losses of $50 million in 2008 and $17 million for the first three quarters of 2009. By the end of 2009, North Island’s net worth ratio had slid all the way to 3.4%.
He took an apartment in San Diego and decided to work-out the credit union while his wife commuted from their Texas home every month. With his apartment lease expiring in September, and the financial condition of the credit union greatly improved, Tippets said he has decided to retire again.
Tippets fended off NCUA recommendations to seek a merger partner for North Island, slashed expenses at the California credit union giant, worked out troubled loans and helped shepherd the credit union back to health.
By the end of 2010, Tippets had brought North Island back into the black, with an $11.5 million net, and followed that up with a $17.8 million net for 2011, and a $10.1 million net for the first quarter of 2012, building net worth all the way up to 8%. Assets are down to $1.1 billion.
