PEOPLE : Valley Federal Chief Dan Nelms Resigns

Dan E. Nelms, the chief executive of troubled Valley Federal Savings & Loan, has resigned.

Valley Federal’s board named chief financial officer Scott A. Braly to serve as president and chief executive, pending his approval by the federal Office of Thrift Supervision.

The change comes as Valley Federal, hurt by losses, copes with federal controls imposed in January that prevent the S&L; from even originating new home loans. But Nelms resigned voluntarily and “for personal reasons,” said Lee Woolley, a spokeswoman for Valley Federal.

Due to a series of large asset writeoffs, Valley Federal reported in January that it fell nearly $90 million short of meeting federal capital-reserve requirements, which are meant to force thrifts to have a cushion against losses.

The OTS slapped the controls on Valley Federal, which has about $3 billion in total assets, while the agency reviewed the thrift’s plan to boost its capital. The OTS has not yet ruled on the plan, but if Valley Federal is unable to increase its capital, it could be seized by the government.

The writeoffs were almost entirely due to higher-than-expected losses at a subsidiary that made loans for mobile homes. But Valley Federal’s board doesn’t hold Nelms responsible for the subsidiary’s problems, said Michael Laurin, chief administrative officer of the thrift and secretary of the board.

Nelms, who joined Valley Federal in 1983 and was appointed chief executive in 1988, has “no immediate plans,” according to Woolley. Neither Nelms nor Braly was available for comment.