FENTON, Mo.-Dennis Sommer, president & CEO of Alliance Credit Union, will be retiring March 1 after 28 years as CEO and 40 years in credit unions. During his career Mr. Sommer has overseen growth to $196 million in assets from $18 million, and to a community charter serving four counties in Missouri and four more in Illinois from an employee-based charter (ACU was known as Emerson Community CU when he took over). Below, Mr. Sommer shares some of his thoughts upon retirement.
CU Journal: How did you come to be involved in credit unions?
Sommer: My father was a volunteer for 30 years at St. Andrew's CU, now known as First Missouri CU. I went to St. Andrew's grade school and the CU taught me a lot about finances at a young age. The rest is history.
CUJ: What were conditions like, and what were the challenges when you took over as CEO?
Sommer: Alliance, formerly known as Emerson Community CU, was $18 million assets with negative net worth of nearly $1 million when I was hired in 1985. We were under NCUA 208 Assistance.
CUJ: During your career you oversaw a transition from an employee-based FOM to a community charter. What lessons did you learn there?
Sommer: By the late 1990s it was clear that we needed to diversify our FOM and reduce our dependence on SEGs for future members. Between 1995 and 2000 we lost 10,000+ auto worker jobs from three SEGs. Our gradual transition from a SEG based to Community CU was critical to our survival.
CUJ: What lessons have you learned managing growth and managing people during your career?
Sommer: With growth, have excellent internal controls during sustained rapid growth periods. With people, trust but verify.
CUJ: What advice would you have for a new CEO just starting?
Sommer: Spend quality time on business planning and your annual budget. Think outside the box. Don't be afraid to act on projects that have had thoughtful analysis. Work long hours if you must, but don't take problems home with you.
CUJ: What is your view of the future of credit unions, if there is to be one?
Sommer: It seems that only large and small CUs are going to survive since regulatory environment is out of control.
