A month after the two largest credit union trade groups announced plans to merge, smaller institutions have had a chance to consider what it means for the industry to speak with one voice.
The National Association of Federally-Insured Credit Unions and the Credit Union National Association announced
The question is whether these benefits outweigh the worry that through consolidation, the trade group may become too big to properly represent its smallest constituents.
Harold Hagen, CEO of $184 million-asset Hometown Credit Union in Hulm, North Dakota, said he voted to approve the merger and believes it will remove the duplication of services and create "one strong and united" group to represent all interests.
"I am in favor of the merger due to cost savings," he said. "For credit unions that belonged to both organizations, the dues were too high. That is why we were not members of NAFCU."
During the National Association of State Credit Union Supervisors'
"And so they need the combined association wisdom to help them navigate those waters," he said.
And that compliance piece cannot be understated, according to John "Bernie" Winne, the former president and CEO of $423 million-asset Boston Firefighters Credit Union in Dorchester, Massachusetts.
Winne, who
Overall the deal is "absolutely the right thing" for CUNA, NAFCU and the industry at large, he said.
"Instead of being unified the two were at times splintered," Winne said. "We weren't always saying the same thing at the same time, and it gave lawmakers an excuse."
Others don't expect to see much change post-merger.
John Murga, CEO of Hidden River Credit Union in Pottsville, Pennsylvania, said the $216 million-asset credit union has membership with CUNA only.
"In some ways, I do not necessarily like to see the consolidation, but am sure there will be some positive benefits of a single source for most credit unions," Murga said. He declined to expand on his concerns.
Paul Gentile, president and CEO of $2.1 billion-asset Merck Employees Federal Credit Union in Rahway, New Jersey, said in an interview last month that the key challenge will be to ensure all types and sizes of credit unions are effectively represented.
"Obviously the big dues dollars come from the larger shops, but it's vital that smaller and midsize credit unions are getting effective advocacy," Gentile said.
The deal between the national groups follows a similar trend by some credit union state associations.
The boards of the Cornerstone League and the Heartland Credit Union Association approved
And member credit unions of the Mountain West Credit Union Association, which represents credit unions in Arizona, Colorado and Wyoming, and the Northwest Credit Union Association, which represents credit unions in Idaho, Oregon and Washington, voted to approve a merger in 2022.
Those deals were driven in part by cost savings, and a similar benefit could trickle down to CUNA and NAFCU members post-merger.
"I'm not sure what it will mean for our members, but our dues expense should go down," said John Buckley Jr., president and CEO of the $229 million-asset Gerber Federal Credit Union in Fremont, Michigan.
John Cassidy
He believes the merger will make the credit union industry's efforts much stronger on many fronts.
"It lessens confusion with legislators, will make lobbying much more efficient and effective and will create more consistent dynamics and messaging across the industry and from the industry," Cassidy said.
