The travails of small credit unions recruiting available CEOtalent at reasonable cost is being underscored this week in a NewMexico merger involving the $101 million Animas CU consolidatingthe struggling $5 million Totah CU, both of Farmington.
|"Yes, indeed.Totah was financially ailing and came to us seekinga merger after they lost their CEO and found themselves unable toattract talent at a reasonable price," explained Gary Sterton, CEOof Animas CU.
|Animas is completing computer conversions in March and April forthe merger that was made effective Dec. 31. Totah, which had a 40%loan to share ratio, saw its losses widen to $348,000 through thefirst nine months on top of a $29,000 loss in 2008.
|There are many CUs of Totah's size that "simply can't afford toattract qualified talent," said Sterton, who is a director of theCredit Association of New Mexico. Animas, with two offices inFarmington, has closed the Totah facility which was not neededsince there is an existing office close by.
|Animas itself, said Sterton, has managed to stay profitable in2009 The CU has a 8.97% capital ratio "maybe a little below ourpeers but we're doing OK," he said.
|In a separate comment on a bill progressing in the New Mexicolegislature to move state funds into small banks and CUs, Stertonasked "Isn't that great to have our money stay in New Mexico ratherthan go to New York?" Or better yet, he said, than having CUs losetheir shares on WesCorp or sending funds off to pay the NCUAcorporate tab.
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