Navy Federal names next chief executive

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Mary McDuffie will retire as president and CEO of Navy Federal Credit Union where she has worked for 24 years. Her successor, Chief Operating Officer Dietrich Kuhlmann, will take over on March 1.

The largest credit union in the world will soon have a new chief executive.

The Vienna, Virginia-based Navy Federal Credit Union said Wednesday that Dietrich Kuhlmann will become its president and CEO on March 1. He is set to succeed CEO Mary McDuffie, who announced her retirement in September.

She has led the company since 2018 and ranked atop American Banker's 2023 list of The Most Powerful Women in Credit Unions.

Kuhlmann joined Navy Federal in 2019 after retiring from the U.S. Navy as a rear admiral and has spent the past two years as the credit union's chief operating officer.

"Dietrich has shown an unwavering commitment to both his country and to his fellow men and women in uniform throughout his extensive career," Ed Cochrane, Navy Federal's chairman, said in a release announcing the succession plan. "These experiences make him the ideal person to lead this institution, and we know he will continue to serve our members superbly in the years ahead."

As COO, Kuhlmann has overseen operations across the credit union's Pensacola, Florida; Winchester, Virginia; and San Diego campuses.  

"I've had the pleasure of working closely with Dietrich in numerous capacities since he came on board at Navy Federal," said McDuffie, who has worked at the credit union for 24 years. "I can think of no better individual to steer us into the next phase of growth and further our mission to serve Navy Federal Credit Union's members and their families."

A graduate of the U.S. Naval Academy class of 1983, Kuhlmann was a career submariner with a subspecialty in financial management. In active-duty service, Kuhlmann completed three successful operational command tours and multiple finance assignments at the Pentagon.

"I'm tremendously grateful to be trusted with the responsibility to lead Navy Federal Credit Union," said Kuhlmann. "This is an incredible opportunity to continue my career of service to our military community and I'm eager to build upon the progress Mary has championed on behalf of our members as CEO."

During McDuffie's tenure at the helm, Navy Federal's assets swelled from about $97 billion to $171 billion, while its membership expanded from 8.2 million to more than 13.3 million at the end of 2023, according to federal regulatory data.

National Credit Union Administration call report data showed Navy Federal had more members at the close of 2023 than its next five biggest peers. Those credit unions had roughly 9.6 million members combined.

Navy Federal's growth is supported by a global military customer base that's relatively recession resistant. Armed forces staffing levels and budgets are more dependent on long-term U.S. defense needs than on near-term economic cycles, Jeff Voss, managing partner for consultancy Artisan Advisors, said in a recent interview.

But with its rapid expansion have come some bouts of growing pains. Most recently, in late 2023, Navy Federal Credit faced a lawsuit that accused the lender of discriminating against minority home loan applicants. It is ongoing. 

The suit was filed after a CNN report found that the credit union approved about 77% of mortgage applications from white borrowers, but only 56% of applications from Latinos and 48% from Black applicants in 2022. Citing Consumer Financial Protection Bureau data, CNN found that this represented the greatest disparity among the 50 largest residential mortgage lenders in the U.S.

Navy Federal pushed back in December in statements provided to American Banker. Management said that the institution is "a national leader in lending to the Black community, ranking third among the leading 50 lenders in the percentage of mortgage loans made to Black borrowers." It made more than $3.5 billion in mortgages to Black borrowers in 2022, the credit union said.


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