Credit union collaboration has taken a new turn as twoWashington, D.C.-area credit unions began sharing a single chieffinancial officer. The move, done to conserve resources and attracta more-qualified candidate, may herald a new trend for smallinstitutions seeking to become more competitive.

New CFO Karen Gouldmann splits her time between the $68 millionDepartment of Labor Federal Credit Union in D.C. and the $58million Destinations Credit Union in Baltimore.

Gouldmann's former roles as a financial institution auditor,compliance officer and CEO for state and federally chartered banksand credit unions give her the unique skill set that the two creditunions were seeking, said Joan Moran, CEO of DOLFCU.

“Both Destinations and DOLFCU were looking for a highlyqualified CFO candidate in the D.C./Baltimore area,” said Moran.“As similarly sized institutions, it made sense for us tocollaborate in order to attract and retain top talent.”

Moran and Destinations Credit Union President/CEO Brian Vittekdecided to share when both institutions lost their own CFOs thispast June. The two credit unions already were part of Rekindle GoBig, a consortium of six smaller credit unions formed last year byMid-Atlantic Corporate Federal Credit Union in Middletown, Pa., tomaximize credit union resources and reduce operating expendituresthrough collaboration. Sharing a CFO seemed like a logicalstep.

“We're all trying to collaborate on back-office functions tostay viable as small credit unions,” Moran said. “Brian and I lostCFOs on same day and I said, 'Can we share one?' That's how ithappened.”

What may seem implausible for many is turning out to be theright solution for Moran and Vittek, whose credit unions aresimilarly sized but differ in their approaches to member service.And although the credit unions themselves are an hour or more apartas the traffic crawls, Moran and Vittek have managed to find anoperating solution that works well for both credit unions withoutputting undue stress on the new shared CFO.

“Joan is moving to a much more virtual environment,” saysVittek. “I have a very busy lobby that's open six days a week. It'sa distinctly retail environment.”

Destinations was chartered in 1935 as the Baltimore TransitEmployees Credit Union to serve city bus company workers. Thecredit union has grown through mergers and by adding SEGs and nowserves more than 200 of the. DOLFCU serves employees and retireesof the federal Department of Labor.

Gouldmann reports equally to Moran and Vittek, but spends only afew days a month at DOLFCU. Most of the work is done remotely forthe D.C. credit union, either from her office at Destinations orher home office in the Baltimore area.

“The position was a great opportunity for growth and allowed meto utilize my skills and experience and be part of a concept thatcould set a precedent for our peer credit unions,” says Gouldmann.“I love a challenge and was enthralled with the concept.”

Gouldmann's background contains what her new employers say isjust the right mix of skills and experience for the job. The formersenior auditor from Provident Bank cut her credit union teeth asvice president of compliance at MECU in Baltimore. She eventuallywas named CEO of the former U.S. Coast Guard Credit Union, whichwas absorbed by Baltimore's Tower Federal Credit Union last July 1.She worked for Tower as senior business development representativeuntil her current appointment.

Gouldmann chose Destinations as her legal employer of recordlargely due to the credit union's benefits package. DOLFCUreimburses the Baltimore credit union for 50% of Gouldmann's salaryand benefits.

The two credit unions have enough similarities to make thearrangement manageable, but the differences enable Gouldmann toapply solutions from one institution to challenges faced by theother. All parties are aware of the need for confidentiality, andagreements between the CFO and her employers stipulate whatinformation can and can't be shared.

As colleagues and professionals, Moran and Vittek can't imaginea situation in which either credit union would be compromised.

“Karen is a former internal auditor and understands that whathappens at Destinations stays at Destinations and what happens atDepartment of Labor stays at Department of Labor,” said Vittek.”We've always shared our successes in the credit union world, whichmakes us different from the banking environment.”

Gouldmann's experience with both state and federally charteredcredit unions was important to Vittek and Moran, who rundifferently chartered institutions. In fact, understanding thedifference was central to the shared CFO's hiring, Vittek said.

“I am one of eight remaining state charters in Maryland and havebeen through two merger acquisition with federal charters,” saidVittek, who has been at Destinations for 14 years. “I felt thatKaren has walked in my shoes and knows the challenges of a smallshop.”

DOLFCU's board immediately embraced the concept, while the boardfor Destinations understood the deeper need for such a solutionbased on Vittek's support of the idea, the CEO said.

“The board was intrigued by the model and that what we're tryingto do also may save us from having to merge,” Vittek said. “Ourmembers are credit-challenged and if they can't come here, no oneelse will serve them. That's sad.”

Credit union regulators also thought it was a good idea,especially since it was a new way to help keep smaller creditunions operational and viable, said Moran.

“The regulators understand that small credit unions arechallenged with having the right people and to stay in business,”she said. We received a very positive response from them.”

Moran agrees in the viability of the shared CFO concept,something similar to what she did earlier with shared collectionspersonnel, and believes it helps paint a brighter future for smallcredit unions.

“It took us about six months to do this search, and we see it asa long-term solution,” she said.

As far as her new position goes, Gouldmann sees many positivesin working for two credit union CEOs she described as “dynamic andprogressive.” She also was excited about blazing new trails in waysto more effectively serve members.

“Over the next three to six months, we'll periodically reviewhow effective and efficiently we're working,” said the shared CFO.“Nothing ever is completely smooth when you're starting from theground up, but we have very open communication. And I am veryexcited about the opportunity to work for two differentinstitutions.”