WASHINGTON — One of the reasons CUNA chose Bill Cheney to lead the trade association in 2010 — his credit union roots — now appear to be the reason why the executive is leaving after just four years at the helm.
The CEO and president of CUNA
Before joining CUNA, Cheney spent 25 years in the credit union community, first as a consultant, then as CEO of the former Xerox FCU, and then as president/CEO of the California and Nevada Credit Union Leagues.
That history — and the desire directly impact members' lives on a big scale at the $10 billion SFFCU — is what's pulling him away from the national trade association.
In a wide-ranging interview with Credit Union Journal, Cheney talked about his reasons for leaving CUNA and reflected on his career at the trade association
Credit Union Journal: Why are you leaving CUNA?
Bill Cheney: As I told my board, I am not running away from anything at CUNA. I am running to an opportunity. There is no hidden agenda. CUNA is hitting on all cylinders now: We have had great success legislatively — we just had a huge victory in the taxation fight — held our largest-ever GAC and generated 1.3 million contacts with Capitol Hill in less than nine months as part of our "Don't Tax My Credit Union" campaign.
CUJ: Your sudden departure surprised many within the credit union community.
Cheney: Yes, I understand that. But when you get the opportunity to go back to working at a credit union and having an impact on the lives of 600,000 members, that's what this decision is all about. It has nothing to do with any dissatisfaction with my job at CUNA.
Opportunities to run a $10 billion credit union with 600,000 members don't come along often. I am 53, and if I passed this up I am not sure a similar opportunity would come around again.
CUJ: When you signed on with CUNA, you said that the job was a "
Cheney: Yes, at the time it was, and it will be a dream job now for someone else. But things change.
When I stepped into my role at CUNA I wanted to bring a different perspective to the trade association, and I know I did. [Past President/CEO] Dan Mica did an amazing job in his 14 years at CUNA. I brought to CUNA a [credit union] perspective that was needed, and one I think served CUNA well over the last four years.
CUJ: Talk about your opportunity at SchoolsFirst.
Cheney: It's a fantastic opportunity. Rudy Hanley has been there 31 years, and the credit union has done an incredible job. Not a lot of credit unions have had the kind of success SchoolsFirst has enjoyed.
[The SchoolsFirst job] is too good to pass up. It's a great opportunity for me and for my family, but I say that with mixed emotions as I prepare to leave CUNA.
CUJ: Under the last CUNA President/CEO Dan Mica, who came to CUNA after a career in Congress, the trade group had a president with strong congressional advocacy skills. You
Cheney: I know it helped me tremendously [at CUNA] to have a credit union background, and I think that is something that should be given strong consideration. But having said that I don't think the board will want to focus just on that trait. I think they need to define what leadership qualities they are looking for and then see what candidates emerge.
CUJ: During your tenure, is there a CUNA accomplishment that stands out?
Cheney: The credit union tax exemption being protected under the new tax draft. That draft eliminated more than 220 tax exemptions and so-called loopholes, and still, our exemption stands.
That did not happen by accident, and anyone who thinks that happened by accident does not understand Washington or reality. That happened because 1.3 million credit union members — and those are just the ones we could count — contacted their members of Congress and said "don't tax my credit union," and because the leagues and CUNA rallied.
CUJ: What other accomplishments are you proud of?
Cheney: There are a number of things I feel good about that CUNA will continue to work on going forward. Our vision is something we worked two years to develop and it will pay big dividends for us. Membership in the credit union movement over the last four years has gone from adding 600,000 net new members a year to three million annually.
CUNA, certainly, did not do that alone, but I think that in part the results are from our outreach efforts to the media and to Americans, including our aSmarterchoice.org website we released around the same time as Bank Transfer Day.
CUJ: When you stepped into your CUNA role in 2010, you spoke of focusing on secondary capital, and also the member business lending cap. Talk about the results over the last four years, and also having to turn the ship suddenly to focus on the taxation threat.
Cheney: We continue to work on all of those issues. Going forward, these priorities are important as ever and have not changed. The first part of CUNA's vision speaks to barriers, and the MBL cap is a barrier, as is the fact about 4,000 credit unions don't have access to supplemental capital.
As I said, these priorities continue to be a focus — I spoke with two senators last week, talking to them about how we can move the MBL bill toward a vote, speaking to one on the Banking Committee about a Senate bill to allow supplemental capital.
On having to turn the ship quickly to focus on the taxation threat, we did not have a choice, we were going to get a tax bill and credit unions had to be protected. While we focused the entire credit union movement on taxation, we continued to work on the (MBL and supplemental capital) issues behind the scenes. We have not lost any momentum there.
Bankers spent millions of dollars trying to get credit unions taxed, and what they got was credit unions continuing to be protected and increased taxes on banks.
CUJ: Do you think credit unions are in a better position today than when you took over at CUNA four years ago?
Cheney: Yes. They are much stronger financially. When I arrived in 2010, credit unions were still recovering from the financial crisis. Today, capital levels, membership growth and public opinion of credit unions are much stronger.
CUJ: There has been ongoing discussion among credit unions over the years about the need for the CUNA and league structure to be reviewed. Now with State Employees' CU (Raleigh, N.C.) disaffiliating, that issue has recently become a CU focus. Do you think the CUNA and league structure needs to be reviewed?
Cheney: I do think it is something that needs to be looked at. [CUNA Chairman] Dennis Pierce and the board will be going through the process of reviewing the CUNA structure and governance, and that would include affiliation choice.
The current structure of our system has served us very well. Having said that, times have changed and certain things need to be reviewed. I am not predicting any outcomes, I am just saying it needs to be reviewed and I know the board will do this. I just spoke with them and that process is moving forward.
CUJ: What was your reaction to
Cheney: That was profoundly disappointing because State Employees' was involved in so many CUNA and league programs. I have known SECU CEO/President Jim [Blaine] for many years and have the greatest respect for him. I am confident that once the board has had a chance to (review the current structure and make any needed adjustments) — and not just in response to SECU's decision but because (the league and CUNA structure) needs to be reviewed on regular basis — that Jim and other credit unions not part of the system will come back and join us again.
CUJ: Credit union CEOs have told Credit Union Journal they are concerned about leagues consolidating, which they say can reduce lobbying effectiveness at the state level and as well as diminish the impact of league training and education programs.
Cheney: Those are legitimate concerns and I can understand why people have them.
However, in most cases that I am aware of leagues are consolidating to become more efficient and effective. They have stressed the importance of maintaining that local presence. I believe the consolidations that have occurred to date have been structured in such a way that the leagues still have strength in every state capital.
