Valley First CU CEO Thrives at Problem-Solving, Crisis Management & Operating in the Abstract

Name: Kathryn Davis

Credit union: Valley First Credit Union ($1 billion, Modesto, Calif.)

Title: President/CEO

Number of years at current credit union: Five

Educational background: Bachelor of Arts from the University of California, Riverside; Master of Arts from Chapman University in Orange, Calif.; CUES CEO Institute; CUES Marketing Institute

CU Times: What are your key responsibilities in your current role?

Davis: As CEO, I steer our credit union toward success while prioritizing member well-being. I develop strategic plans, ensure regulatory compliance and build strong member relationships. I am also Valley First’s biggest community ambassador and do a fair amount of community service through various boards I am on. Nurturing our team’s talent and advocating for the broader credit union movement are also key aspects of my role.

CU Times: What drew you to the credit union industry?

Davis: Like most people, I ended up here accidentally and then just fell in love with the credit union movement! I worked as an intern part-time at a local credit union while in high school, and then after graduate school, my first management job was with another credit union. The work credit unions do to provide fair and affordable access to financial products is one that has always resonated with me and is a driving force behind the work I do today. As a first-generation American, I grew up not seeing this access extended to my family because we did not belong to a credit union. My parents predominantly transacted in cash as they grew up in a banking system that collapsed. The accessibility and financial inclusion that come from credit unions are what have kept me here for almost 30 years. I want everyone to have access to a credit union!

CU Times: What unique skills, experience and attributes do you bring to your role?

Davis: I am a big-picture person and easily operate in the abstract. I am super comfortable in transition and also very good at managing crises. I love solving problems, which makes me good at my job because, generally, what lands on my desk are issues that no one else could solve! Valley First is the third organization that hired me to develop a new strategy and vision. As a former marketer, my ability to determine and understand market needs has been invaluable in developing new strategies. I view the world through a purpose-driven lens, which has shaped my ‘why’ for over two decades now and also sets the tone for how I lead. At Valley First, we are not driven by just the bottom line or how big we are in assets. We have surpassed our financial results by remaining focused on what matters – the financial well-being of our members and community.

CU Times: Which person (or people) do you credit the most for helping and supporting you along your career journey?

Davis: Many people played a significant role in supporting me on my journey. I’m very grateful to have had so many people in my corner along the way! My parents always supported me and encouraged me to try and do new things. I was the first person in my family to go to college, and I credit my parents for this support.

I also had many great leaders and mentors who supported my growth along the way. I was fortunate to work for Teresa Freeborn, former CEO of Xceed Financial Credit Union [now Kinecta Federal Credit Union], for almost half of my credit union career. I will forever be grateful for the support and guidance she gave me personally and professionally. As a working mom who was growing my family while also climbing the corporate ladder, she gave me many opportunities that I am not sure would have been possible with other leaders, as she understood the challenges of being a working mom herself. She always told me, ‘Your hands should sweat a little when you’re making a big decision, if they’re not you’re not thinking big enough.’ She is (and was) a big thinker. I learned a lot from her boldness.

And last but not least, I would not be where I am at without the support of my husband. Gen X dads like my husband changed the landscape for working women. His career never came before mine, and mine never came before his. Of course, opportunities ebb and flow, and navigating that is one of the things that has made our 20-plus-year marriage a success. He allowed me to be me and supported me to get the job I have today. It took me nearly 10 years and countless rejections on the path to becoming a CEO. When I first became a CEO in 2014, I was not even going to go to the first interview because I was tired of the rejection and was about to give up. My husband was the one who pushed me to go, and we had a six-month-old baby at home at the time! He has been my biggest champion, and I am so grateful for his support. He could probably run a credit union of his own with the amount of business advice I get from him!

CU Times: What are some of the biggest differences between working in your current executive level role and your previous, non-executive roles?

Davis: I think the fluidity of the role is the biggest difference. It is less task-oriented and more strategic. In non-executive roles, you get the satisfaction of a project or task being completed. I feel like in my current role you continue evolving your strategy and vision, and those things are never complete.

CU Times: What’s a challenge you faced when you first joined your executive team, and how did you overcome it?

Davis: When I arrived at Valley First in 2019, we were on autopilot and definitely status quo. I remember asking the executive team if we should just merge with another credit union. You can imagine they were pretty shocked, but out of that conversation, we began to lay the foundation for our ‘why’ and how we could be more impactful. Spearheading our culture change around efforts to foster a culture that prioritizes community impact and innovation was the biggest challenge we initially faced. Taking on this challenge involved implementing initiatives such as volunteer programs, community outreach events and targeted employee training sessions. By instilling a shared sense of our purpose and our ‘why’ and values within the team, we cultivated a culture of Learning, Passion and Ownership (our new core values).

CU Times: How would you describe your current leadership style?

Davis: I’m big on collaboration, teamwork and transparency. I have high expectations of everyone around me (me included), and I want everyone to show up and give their best because what we’re doing matters. I view our work here at the credit union as a ‘calling.’ I recognize this is not for everyone, but for those who are mission-driven, they thrive here. I am a supportive leader and want to see my team thrive. I like to see people grow, so I am always one to let people try and do new things. I am also one to rarely say no. If someone presents me with a well-thought-out plan, chances are good I will greenlight the project. I am super passionate about my work and want others to also find that passion, so I definitely strive to make that happen through my leadership.

CU Times: Do you approach your job any differently now compared to how you did pre-pandemic? If yes, how so?

Davis: Truthfully, no, I approach my work the same way I did pre-pandemic. During the pandemic, we remained true to our strategic plan and did not pivot from the overall strategy, which is work I am still doing today. I am a pretty high-touch person and like to connect with others. Obviously, we had to figure out other ways to collaborate and connect during the pandemic, so remote tools made that possible. Since I’ve started, I have hosted a weekly executive team meeting every Monday morning to catch up and set the tone for the week. We did this before, during and after the pandemic. It is one of my favorite meetings of the week!

CU Times: What’s next for you on your executive career journey? Do you have any specific career goals you’re working toward?

Davis: I am very focused on expanding Valley First’s impact. I am looking to challenge current credit norms in the hopes of helping more people. I actually think the traditional models used are so dated and have bias in them. We have already done a lot of work to change that at Valley First, but obviously, we still have regulatory constraints on what we can and cannot do, so we are working on some alternatives to test those theories.

From a career perspective, I look to continue innovating and doing new things here at Valley First. I also plan to return to school for one more degree when my youngest goes to college and will obtain a Ph.D!

CU Times: What big-picture impact do you hope to make within your credit union, as well as for your members and community?

Davis: I want to focus more on how we change our community through financial well-being. Becoming a CDFI was a big part of that, but there is so much more work to do. We have so many underserved pockets in our community. I have always believed that you do not have to have a lot of money to live a rich life. We have the tools and resources at our disposal to help our members live better lives. We need to figure out how to do that every day and plan to scale that at a bigger level in personal finance, homeownership and small business startup and growth.

CU Times: What career advice would you give your younger self?

Davis: Do not worry so much; it’s going to turn out better than you ever could have imagined!

Would you or someone you know like to share your journey to credit union leadership? Please reach out to Natasha Chilingerian at nchilingerian@cutimes.com. To qualify, the individual must be a part of a credit union’s leadership team or C-suite, and have a compelling story to share about their rise to their current leadership role.