ORLANDO, Fla. San Diego-based North Island CU has long had a strong connection with the U.S. Navy and a local Naval Air Station, so it is fitting that former CEO John Tippets would rely on a nautical metaphor for one element of that CU’s turnaround.
“Your brand is your lifeboat never abandon your lifeboat,” said Tippets, who delivered a keynote address to a packed house at Credit Union Journal’s Grow Show here Thursday.
Brought in by NCUA to help lead a turnaround at troubled North Island in 2009, Tippets oversaw a reduction in staff of 50%, the closing of seven branches and even the run-off of some members unhappy with changes made to certificates. But in all cases the changes were necessitated by a need to restore net worth. Tippets said certain changes in management team members left a group that was substantially stronger, and together all worked to lead a turnaround that took several years.
Although assets have declined at the one-time $4-billion CU, it has been by design, and North Island Credit Union has returned to profitability. Tippets has since departed North Island, which now is being led by a new CEO.
