DULUTH, Minn.–Larry Champeaux has stepped down as president and CEO of Northern Communities Credit Union (NCCYou) here after 28 years in credit unions, including eight with NCCYou. Below Mr. Champeaux shares some of the insights gained and lessons learned during his career:
CUToday.info: How did you come to be involved in credit unions?
Champeaux: My parents were credit union members; my father having worked as a millwright at a paper mill where I grew up. He/they belonged to the employer-sponsored credit union and, of course, I became a member of that credit union, too. I am still a member there! So, I have always been familiar with credit unions.
I was first hired as a credit union service organization manager by an individual who, in 1987 was the president of a different local credit union. This person was one that I had known most of my life as he had been my little league coach and Boy Scout leader. I had approached him about using him as a reference on my resume, and several months later he hired me!
Over the next several years, a new president was hired; he offered me a position on the credit union’s senior management team. I worked at that credit union for 20 years, before becoming president/CEO of Northern Communities Credit Union.
CUToday.info: What have you learned about driving and managing growth during your career?
Champeaux: When I started in 1987 and through those 20 years following we were able to grow our credit union substantially; we were able to grow the capital position from one of concern to over 11%. Overall, those were good economic years, and most credit unions thrived.
When I started at Northern Communities Credit Union in 2008 the Great Recession was just upon us, not to mention the corporate credit unions were failing. The capital position of our credit union was significantly diminished, the result of an aggressively underwritten indirect lending program and subsequent significant consumer loan charge-offs coupled with the corporate credit union bailout.
The past eight years have been challenging as it relates to growth. We have kept our asset growth under control to maintain an acceptable capital position. Our market is not one of tremendous population growth, and arguably there is overcapacity in banking, so gaining market share is slow.
What I’ve learned: Build equity as much as you can when there are good economic periods, because one will need that equity when those good economic times diminish.
CUToday.info: What have you learned about managing people during your career?
Champeaux: I’ve learned that all of those basic things that were taught to us growing up are true. Treat others as you would like to be treated. Be respectful of everyone. Be trustworthy, and surround yourself by others who are trustworthy, too. Be happy….it will have a positive effect on those around you. Empower people…. they’ve been hired to do a job, and they want to do it. And, finally, have a tolerance for errors. We all make them.
CUToday.info: What are your thoughts on the future of smaller to midsize credit unions, such as our own? Will they remain viable?
Champeaux: No doubt, the viability of small to midsize credit unions is concerning. I sometimes wonder what will be the new definition of a small credit union as so many are disappearing through mergers and credit unions become larger and larger.
Looking at pure numbers, the economies of scale and the efficiency of larger credit unions are inarguable. I do believe, however, there will remain an opportunity for small to medium size credit unions in certain markets. I also believe the success factor still comes down to how we treat and serve the member/owners of the credit union. A colleague once posed the question to me: “Why does that larger credit union think that they can serve your member better than you can?” The fact is, a smaller credit union can likely serve them better.
CUToday.info: If you could go back and talk to yourself on day one of your career, what advice might you share?
Champeaux: What a great question. With the benefit of all those years of work and life, I would advise that there will be great challenges, both personally and professionally. There will also be great opportunity in life and work. Everything in life intertwines, so find the balance. The personal is more important, by far. I’m looking forward to spending more time in that space.