Since your login names are currently firstname.lastname, Do a substr(@userid,1,1) to get the first letter of the first name.
then do a while loop that looks for the "." while substr(@userid,$count,1) <> "." loop then when you find the period, add one more to substring and take the next 7 characters.
substr(@userid,$count+1,7). This was just brainstorming. The code should be easy enough.
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