3 Credit Unions, 1 CEO

In California, three credit unions put a shared-staffing strategy to work at the highest level.



Jon Hernandez, CEO of Mattel Federal Credit Union, Calcom Federal Credit Union, and Nikkei Credit Union

Jon Hernandez — CEO of Mattel Federal Credit Union, Calcom Federal Credit Union, and Nikkei Credit Union — began his credit union career 20 years ago as a teller at Mattel FCU. The chief executive is now responsible for guiding three independent credit unions, each with their own boards, business plans, 5300 reports, exams, audits, and membership bases.

Although the credit unions operate separately from one another, they do share resources when it is fiscally logical to do so — for example, in matters of compliance or technology, real estate loans, marketing, and, of course, executive leadership. It is a strategy that has allowed Mattel FCU($27.3M, El Segundo, CA), Calcom FCU($63.5M, Torrance, CA), and Nikkei($67.8M, Gardena, CA) to remain independent within a cooperative world. It has also allowed them to stay true to their missions and members.

Here, Hernandez discusses how a shared CEO model benefits smaller credit unions and underscores the competitive advantage of the cooperative model.


Calcom Federal Credit Union
Data as of 03.31.15
  • HQ: Torrance, CA
  • Assets: $63.5M
  • Members: 8,117
  • 12-MO Share Growth: -2.06%
  • 12-MO Loan Growth: 11.72%
  • ROA: 0.21%

How did you become CEO of multiple credit unions?

I started as a teller at Mattel and became CEO of CalCom Credit Union (then named LICOMTO Credit Union) in 1996. In 2002, I took over a small credit union, Copley, when the CEO passed away. In 2003, City of Downey Credit Union called for help as it transitioned to a new CEO. I was running its board meeting for three months when the board asked if I wanted to continue working with all three credit unions.

And you still serve as CEO for three different credit unions?

Yes, however there have been some changes. Copley and City of Downey have merged with CalCom. In 2004, Mattel asked me to take over as CEO, and in July 2014, I became CEO of Nikkei Credit Union.


Mattel Federal Credit Union
Data as of 03.31.15
  • HQ: El Segundo, CA
  • Assets: $27.3M
  • Members: 2,784
  • 12-MO Share Growth: -13.23%
  • 12-MO Loan Growth: 0.35%
  • ROA: 0.03%

How did you and the credit unions’ board members evaluate this strategy?

In the Copley case, I was helping the credit union and I could do it without negatively impacting CalCom, so I did it. When it came to deciding long term, I had to go back to my team at CalCom and ask if I would have their support. Could they assist if anything came up? I had to have the same discussion with the Copley and City of Downey board of directors. We decided we would try it for a four- to six-month period to see whether it was too much to effectively manage.

All three of the boards were supportive. For the Calcom board, it was all about the deliverables. If I could meet the goals, it didn't matter how I did it.

What other resources do the three credit unions share?


Nikkei Credit Union
Data as of 03.31.15
  • HQ: Gardena, CA
  • Assets: $67.8M
  • Members: 6,069
  • 12-MO Share Growth: -3.39%
  • 12-MO Loan Growth: 19.49%
  • ROA: -0.03%

We share certain positions the credit unions can’t afford individually. For example, a compliance officer or technology officer, a real estate loan person, a marketing director. Those are dedicated positions we each wish we had, so we share between two or even among all three credit unions.

Sometimes we share tellers. For example, one of the credit unions was robbed in late December and its tellers needed to go through trauma counseling. So a teller came over from one of the other credit unions for the day.

How does your leadership style help you manage multiple organizations?

I provide the structure and the job expectations, but, really, it comes down to accountability. I’m not present all the time, so I need to inspire my employees to think for themselves and do the right thing for the organization. I ask them to take the initiative and take ownership.

I also have a “screen door” policy. By the time someone comes to me with a problem, I want them to also provide a possible solution. More than likely, what they propose will be the right thing to do. Through that process, they learn they were right — or close — in what they thought. That helps them become more confident and independent in the future.

What are the greatest successes for each of the three credit unions?

For CalCom, it is the growth and expansion of our service offerings. The credit union was $4 million in assets with 900 members when I took over. Today, it has more than $66 million in assets with more than 8,000 members. I don’t think we had a checking account when I started. Today we have checking — and much more — to offer the growing membership.

For Mattel, being able to serve members through the tough economic times was a big success. When the corporates shut down, Mattel had three separate corporate accounts because of the way our branches are geographically dispersed. We went from 10% to 7% capital overnight. Despite that, we were able to sustain and thrive. Today, we’re at 8% capital.  

A shared CEO model is not the right approach for everyone, but I believe the industry needs more collaboration. In most cases, we don’t compete with one another so why not join forces where we can?  

With Nikkei, we’ve completely restructured the organization and are focusing on loan growth so we can reduce our net losses and break even. We need to continue executing the plan, but we’re on the right path. In a short amount of time, we’ve increased the loan portfolio by 20%. We’re still in the honeymoon stage — and there is more work to be done — but our initial efforts are paying off.

What can others learn from your shared CEO structure?

A shared CEO model is not the right approach for everyone, but I believe the industry needs more collaboration. Smaller and mid-size credit unions, specifically, just don't have the economy of scale we need.

If we collaborate with one another, there’s a much better chance we'll continue to serve our members and thrive.  In most cases, we don’t compete with one another so why not join forces where we can? A credit union is a cooperative, so I’m trying to go back to that.

Read more from Jon Hernandez in “On Leadership,” appearing in the second quarter 2015 issue of Credit Union Strategy & Performance.

— Sharon Simpson contributed to this article. 




June 29, 2015


  • Jon, I think you embody the cooperative spirit of the Credit Union movement. Keep on keeping on!
    Bill Mullally
  • The fact that we try to maintain each credit union's distinct identity is important to each of these institutions. Each credit union has a unique membership that requires its own way of being served. We don't need to merge just to achieve scale instead we should find ways to achieve it by collaborating and working with other credit unions just like sharing employees and resources. There is a cost to remain independent, but that's the cost of keeping your identity. There's savings in having shared employees. Compensation, benefits, training, and succession planning have a lot of advantages when negotiating with vendors. As long as the credit union is operating efficiently and effectively, then it has the right to remain its own separate entity.
    Jon Hernandez
  • Intriguing. I enjoy the simplicity of a smaller credit union and interaction with members to make a difference in their financial well being.
  • The obvious question is why are the three credit unions still independent and not merged. The collaboration they have now is only a small taste of what the efficiencies would be if they were one credit union. The article would have been more interesting if Jon had talked about what advantages they retain as independent credit unions. There is a cost to remaining independent and members bear that cost. A credit union should be able to point out clear advantages that offset those costs. I have tried hard to find any advantage to remaining independent.
    Henry Wirz