CINCINNATI and CLEVES, Ohio (3/16/12)--A small Ohio credit union that had difficulty attracting a new CEO has entered a management agreement with the credit union service organization of another, larger credit union in the state.
Presidents FCU, an $11 million asset credit union based in Cleves, near Cincinnati, entered the agreement with Emery Financial Services, a wholly owned subsidiary of $140.9 million asset, Cincinnati-based Emery FCU. The CUSO has assumed all managerial responsibilities for Presidents FCU, said the two credit unions.
"We had great difficulty finding a new CEO after the position was vacated in August of 2011," said John Neyer, Presidents' board chairman. "The right candidate eluded us, so our options were either to merge with another credit union or enter into a management agreement." He called the agreement "an ideal solution to our issue, as the company now serves as our CEO while we continue to exist and function as Presidents FCU."
The two credit unions have been in a shared-branching agreement for more than five years.
Under the contract, Presidents' four employees will remain in their current positions with Emery Financial Services providing all additional staffing, information technology and back office support. The two already have worked together on Presidents' financial reporting, compliance requirements, data processing and lending services.