NCUA Regulators at my Branch!

The Fall of Eastern Financial Florida Credit Union

My memories of a challenging time!

I am not one to stay stuck in the past; I have been blessed with a resilient nature that has allowed me to endure difficult times with an optimistic lens, learn from the experience, and move on, hopefully, stronger and wiser. But the recent financial turmoil affecting the banking industry and the collapse of Silicon Valley Bank and Signature Bank brought back painful and vivid memories of the financial crisis back in 2008-2009 during my days as a Branch Manager working for the now-defunct Eastern Financial Florida Credit Union which was one of the casualties of the financial meltdown.

This article is about the human suffering and trauma caused by the collapse of a company. When employees, hard-working men, and women who, at no fault of their own, find themselves without a job or in limbo awaiting their fate, enduring sleepless nights full of anguish and stress, waiting to see if the new Management would keep them.

My words here are for the men and women dealing with the harsh reality of not having a job to support their families and struggling to find an open door; STAY STRONG!

Also, I want to pay homage to those who have persevered through these challenging experiences by reinventing themselves, embracing new opportunities, staying flexible, and finding new horizons. The company decisions that put you in this predicament did not and will not crush your spirits!

Chin-up, my dear!

If you lost your job, don't lose time! Start looking for a new job now. It may not be exactly what you had before, but you can regain your footing and start over! This is a painful and traumatic time for you and your family. I know; I lived through this. My husband was laid off during the 2008 crisis; he was also an Eastern Financial Florida Credit Union employee and was let go during the first rounds of layoffs. So, my ordeal and anguish came from all sides; the harsh reality of living with one salary and the uncertainty of not knowing if I would lose my job next.

Thankfully, I did not lose my job; I stayed working for my new employer. Space Coast Credit Union was my new employer; they introduced me to a culture very different from what I knew, but one that I learned to love and appreciate deeply. In addition, they allowed me the opportunity to continue doing what I love: Improving members' financial future, leading and developing intelligent and caring teams, and using my innovative nature and creativity to dream up new ways to improve the member experience.

So, if you are still not sure if the new company will keep you or for how long, I know this is a difficult time, full of anxiety and insecurities, but you need to keep showing up to work with your head up high for your customers, your team, your peers, and your new Management; they all need you! They need strong people who can dust themselves off and start again. The new company needs your experience, business connections, customer relations, and, most of all, your passion! So be open to the new culture, mission, and core values, and embrace them with optimism and resiliency, even if they initially seem foreign. This will be a learning experience for you and your new Management Team. You are all going through a learning curve and a transformation. Things will continue to be hard for a while before they get better, but you need to remain committed; it will get better!

Your new company is now larger and needs bright people to help them through this process. It is a challenging time that can become an exciting opportunity for you. You will find new doors and meet new and inspiring people who will become your superiors and peers. You will develop lasting professional relationships with them, hopefully turning into beautiful friendships. Of course, the adjustment period is never easy; not everyone will be as welcoming or happy about the changes. There will be times when you must stand up for yourself or speak up when something needs fixing; you can do this! You are capable and strong. Don't let the small things upset you or keep you down. Again, you are all going through a transformation together; give yourself and your new company time. Be kind and welcoming!

Ultimately, the new company, your customers, your team, and most importantly, YOU will reap the benefits of your courage and commitment. You will expand your knowledge; you will find a new home and a new sense of belonging. You will gain a deeper appreciation for what you have. You are now tougher and wiser! So, stay strong through this challenging journey, and you will be ok!

Life Before the Fall:

Before EFFCU got into financial troubles, it was a thriving company growing by leaps and bounds. It grew into one of the largest Credit Unions in Florida. The company was good to its employees and went above and beyond to provide excellent employee benefits and good products and services for its members. The company flourished because of its commitment to its employees and members, and the dedication and love were mutual! Employees loved EFFCU and expressed great pride when they spoke about the company and its culture. My husband and I loved working for EFFCU and felt lucky to work for them. I had a fantastic team, peers and Director; they were professional and kind people dedicated to our mission, our members, and each other.

"The grass is not always greener on the other side" "Or maybe it is":

When news broke about the financial troubles, employees worked hard to do their part to save the company, but the weight of the losses was too great, and employees could do nothing to fix the damage. We were all victims of the fallen giant; seeing this great company crumble was very painful.

The company's financial troubles were due to the inability to understand risk fully. As a result, EFFCU decided to invest in highly risky "Collateralized Debt Obligations" (CDOs), a practice that was atypical and highly uncommon for a Credit Union. Credit Unions are a safe place for members; the Credit Union philosophy is "Members before Profit."

Credit Unions vigorously uphold their fiduciary responsibilities to protect and act in the best interest of our members. What happened to EFFCU was unfortunate; EFFCU deviated from its core beliefs by engaging in risky behavior outside the realm of Credit Unions. At the core of it all, arrogance and a false sense of superiority fueled the unfortunate decisions that doomed this company.

The Branch Manager job became highly challenging because of our internal financial troubles, but the financial world was simultaneously in free fall. The Mortgage meltdown devastated countless companies and industries; people worldwide were deeply affected. Being a Branch Manager during those days, took every ounce of emotional strength and leadership savviness to keep the team engaged and positive. Despite the looming reality, I needed my team to keep reporting to work with energy and optimism. I tried focusing on the positives, and the mission at hand: taking care of our members' financial well-being; that was our mission. But I was always honest with my team; there was no sugarcoating the reality that our ship was taking on water and going down fast.

I held daily morning huddles before opening time to share the latest news or stories to support each other. This was extremely helpful as we built a stronger sense of teamwork, community and did not feel as vulnerable; we were in it together! My peers and Director were also instrumental in helping me deal with the uncertainty of our reality. We lifted each other when nerves were getting the best of us! I appreciate those people more than they would ever know. I am lucky to know them still and call many of them my friends!

NCUA Regulators at my branch - Friday - April 24, 2009:

This day is seared in my memory like a painful burnt you remember. Even while I write this, I still remember the out-of-body sensation I had when the NCUA Regulator came into my branch. We didn't know exactly what he was about to tell us, but we just knew Eastern Financial Credit Union was done!

I shook his hand and walked him to my office, knowing that what he was about to say would change my life. We entered my office and closed the door; he never sat down; he went straight to the point; he explained that the NCUA was now in complete control of EFFCU, that Executive Management and Board of Directors had been removed, and that SCCU was overseeing operations. My brain was trying to focus, but my heart was racing. I still remember his kind blue eyes and gentle voice. He said branches would remain open for service and asked me to relate the information to my team and to keep them calm. He also said a phrase that meant so much at the time "You are now in good hands." This was deeply impactful, and I believed it.

I called my team in groups and explained what had taken place in a composed and clear tone. My team heard the news, collected themselves, and returned to work; they were so brave! This news was just the confirmation of the expected reality we all feared. So, it was unfortunate but not shocking.

During the visit, the NCUA Regulator conducted a full branch cash audit as a standard procedure during this type of event. And before he left the branch, he thanked me for my help and complimented my team for their professionalism and positive demeanor under pressure. He left me his business card, which I had saved for many years, as a reminder that we are stronger than we think when the time calls for it.

"What doesn't kill you still hurts," but it doesn't have to crush you:

The following days and weeks after the collapse were tough, members were calling and coming to the branch asking about the news. They wanted to make sure their funds were safe. My team and I had long conversations with each member explaining what had transpired but assured them that we were fully operational and open for business and most importantly, their hard-earned deposits were safe.

At the time, I knew little about Space Coast Credit Union, but I knew they were going to take care of our members. I assured my members that SCCU was a strong Credit Union that knew how to safeguard their deposits. And I repeated to my wonderful members the same words the NCUA had said to me, "You are in good hands." We had developed strong relationships with our membership, and they trusted us!

I was very proud of my team, peers, and the new Management for keeping our membership calm and reassured. Most of our former EFFCU members stayed with us, we had a very loyal membership, and they loved the Credit Union; and learned to love and appreciate SCCU as I did.

Thank you SCCU!

Space Coast Credit Union had the courage and vision to embark on the challenging journey of taking on a broken company under its care. This was not an altruistic move, but it was not a walk in the park either. They worked hard, pulling the salvageable pieces and built a strong and dynamic new organization. They recognized the opportunity to expand to an exciting and vibrant area like the South Florida market. They saw potential in a shattered institution and were willing to take the time to put the pieces back together. They gave us a second chance to rebuild the future that was almost taken from us.

Be the driver of your own future!

No matter the industry of your position, when you lose your job or are dealing with an unpredictable future, nothing anyone can say can magically remove the heavy weight of uncertainty and fear. Still, I promise you that you can turn an adverse situation into new possibilities through determination, courage, and resiliency.

The hard lessons learned in 2008-2009 helped me grow and appreciate what I have today. I took every opportunity, did more than expected, embraced change, and remained positive. These were lessons that to this day are part of who I am. Of course, things were not perfect, and there were many moments of immense self-doubt and paralyzing fear, and I am sure I made plenty of mistakes, but I pressed on. Only you can change your destiny! Be the driver of your own future!

My love for the Credit Union Movement:

I am a proud and strong advocate of the Credit Union philosophy: "Members before Profit." This is not just a slogan but a meaningful marching call and what makes Credit Unions a trustworthy partner and a solid financial guardian for life. The health of Credit Unions is strong and thriving, and everyone should have a Credit Union membership!