Credit union's 'heart and soul' retiring

Charlie Abell, president and chief executive officer of Whitefish Credit Union, knows exactly where he'll spend Sept. 1, his first day of retirement after 44 years on the job.

"I'm going to go out in a little fishing boat, take a lunch and spend it on Whitefish Lake," he said.

As always, Abell plans to personally deliver paychecks to employees on Aug. 31, his last day on the job.

"I take a lot of pleasure in delivering checks," he said. "I put a little note in each one."

He admits that nudging - actually nagging - from his wife, Susan, plus the thriving condition of Whitefish Credit Union (with assets over a billion dollars' convinced him to pass the presidential torch.

"I just turned 70. A guy ought to retire before he drops dead, although, for a long time I thought I'd die in this chair," he said. "It's been a wonderful job but it's time for new, brighter, younger people."

According to Abell, the credit union board has narrowed the applicants to five finalists but no successor has been hired yet. He said he has no fears about the future if the board sticks to its operating philosophy of providing basic, traditional credit union services.

By emphasizing efficiency and not offering bank-like extras such as checking accounts and credit cards, Whitefish Credit Union has consistently ranked in the top 10, sometimes number one, in the nation for the rate of dividends paid by federally insured institutions on passbook accounts.

"I hope the board is convinced that way of doing it is okay," he said. "We've been successful by being plain vanilla."

Abell admits to "a few sprinkles' on the vanilla with offerings such as debit cards and a bill-paying system. He makes no apologies for keeping the institution lean so members see their savings accounts plump up.

"Our costs are a third of our competitors'," he said. "And our dividends are usually twice what our competitors' are."

In June, the credit union paid dividends of $11.3 million to 57,000 members and added $1.3 million to its capital. Abell takes pride in Whitefish Credit Union's capitalization of $115 million, equaling 10 percent of its assets.

"That make us a solid financial institution," he said. "That's the first line of defense against economic catastrophe."

He pointed out the Whitefish Credit Union started in 1934 "in the bowels of the Depression" with five men putting in $5 each for operating capital of $25. Even with the current recession and seemingly endless job losses, Abell urges confidence in the future of the Flathead Valley and the country in general.

"In 44 years, I've seen a lot of economic ups and downs," he said. "We just have to be patient - don't over-react to what's happening. Don't panic."

A native of Whitefish, Abell said he didn't grow up knowing he was headed more than four decades in the financial industry. He credits his parents with stirring his interest with their membership in the credit union.

"I think my parents were proud of it and spoke highly of the cooperative philosophy," he said.

After graduating from Whitefish High School in 1958, Abell put in six months on active duty with the Army Reserve before attending college in Missoula, where he married his wife during his senior year.

Describing himself as an average student, he said he was most interested in science and earned good grades in courses like microbiology.

"Most of the business stuff was boring," he said. "But I knew a guy could get a job in business and finance."

Graduating with a degree in finance and marketing, Abell went to work as a security analyst for Union Bank and Trust Co. in Helena. In 1965, he jumped at the opportunity when a collections officer position opened up at the Whitefish Credit Union.

Abell said his desire to come back to the valley overcame the drop in pay from $475 a month to $350 a month at the small credit union.

"When I came to work here, there were four people," he said.

Two years later, he was promoted to president when credit union assets totaled $780,000. He kept the title for the next 42 years.

Abell must have had an inkling of his future because wrote his senior paper on credit unions and made a two-hour presentation explaining the concept of these nonprofit institutions.

"Credit unions are cooperatives owned by the members," he said. "The people who are my bosses are all volunteers."

Whitefish Credit Union operates with a seven-member board of directors, a seven-member credit committee and a five-member supervisory committee. Abell considers these volunteers crucial to the success of the organization and the loan-making process.

"They're familiar with the area and they know the people," he said. "Most important is the character of the people."

Abell said credit unions started because banks wouldn't serve working people. Whitefish Credit Union's operational philosophy includes the credo of treating members as equally as possible no matter where they live or the size of their bottom line.

"We have always lent to people of modest means," Abell said, as long as they had a stable income and good collateral.

As often touted in its advertising, Whitefish Credit Union never sells loans and is one of the few to loan on undeveloped land. Members borrow without paying loan fees commonly charged by banks that often sell loans in the secondary market outside the valley.

"They [banks' charge $3,000 to $5,000 and that's the money they keep," Abell said.

He said that the large return from the interest paid on the loan leaves the valley.

Whitefish Credit Union followed the European model of serving a specific geographic area - Whitefish and the area within 50 air miles. To join, members must have a physical and mailing address within the service area.

As the valley grew, the credit union expanded with the first Kalispell office added in 1981. Locations followed in Columbia Falls, Polson, Eureka and Thompson Falls, adding up to seven offices counting two in Kalispell and the one in Whitefish.

Looking back over the four decades, Abell recalled that some of the tougher years took place in the early '80s when property values dropped and interest rates were high. At the time, banks offered as much as 18 percent on certificates of deposit while the credit union paid about 10 percent on savings accounts.

Abell sees a different set of circumstances with the current financial downturn and interest rates at near historic lows.

"A lot of the problem now is over-building," he said.

Through good times and bad, Whitefish Credit Union continued to grow at an average rate of 10 percent.

During his 44 years in the business community, Abell participated in a large array of service organizations and served on the Whitefish School Board, North Valley Hospital Board, Whitefish Soil Conservation District, Flathead Basin Commission and more.

He received many honors and titles such as King of the Whitefish Winter Carnival, Outstanding Citizen of Whitefish, Whitefish High School Bulldog Hall of Fame and Whitefish Citizen of the Century.

Leo Tracy, chairman of the credit union board, said it's difficult to think of Whitefish Credit Union without Abell. He noted that his retirement coincides with the credit union's 75th anniversary, calling it "a fitting date for a man who has been the heart and soul of the credit union for more than half [of] its existence."

Abell leaves with a mix of emotions, given the increasing challenges of regulations in the financial world.

"I'll miss the people, not the pressure," he said.

Along with fishing, Abell looks forward to traveling with Susan and visiting his sons Tarn and Koel and their families, including grandchildren Sam, 12, and Lynn, 8. He plans to learn to tie flies and reload ammunition, finish a couple of books and organize years of photographs.

"And I want to clean the garage," he added with a laugh.

If pressed for advice on the secret to his success at the credit union, Abell said it was hiring people smarter than himself.

Loving his job made the 44 years a joy.

"I never remember getting up in the morning and saying, 'I don't want to go to work today," he said. "There was a new challenge every day."

Reporter Candace Chase may be reached at 758-4436 or by e-mail at cchase@dailyinterlake.com