“There has been a lot of conversation around optionality and choice in the credit union system recently,” Cornerstone President/CEO Richard L. Ensweiler said. “Our team will continue to support CUNA's leadership as it works with Cornerstone to affect greater effectiveness, efficiencies and communication among system partners, while maintaining the existing system structure.”

The Cornerstone league's public announcement follows a decision by the board of directors of the Michigan Credit Union League to pass a resolution that will enable Michigan credit unions to affiliate with the state league, regardless of whether the credit union is affiliated with CUNA.

However, Dave Adams, president/CEO of the Michigan league, said his league will strongly encourage Michigan's credit unions to continue their affiliation with CUNA to advance the industry's advocacy initiatives.

In a previous interview with CU Times, Ensweiler said he and other credit union leaders were surprised when Adams informed CUNA about the Michigan league board's decision on Sept. 18 when the CUNA board of directors, the task force and league CEOs met in Madison, Wis.

“That took us by surprise,” Ensweiler said. “We were all taken aback by it. We asked him a bunch of questions and he was pretty firm that this is what he believes.”

Adams said the Michigan league's action was in no way a suggestion that credit unions in Michigan should consider not affiliating with CUNA.

“In Michigan, we have a 99% affiliation rate with both associations, and we continue to believe that it is vitally important for the health of our industry and for the success of our advocacy efforts that credit unions remain affiliated with both associations,” the league wrote in an email to its member credit unions. “However, in rare instances, whether due to financial hardship or for other important reasons, a credit union in Michigan may find it necessary to affiliate only with the MCUL.”

Adams said the Michigan league's decision did not violate any CUNA bylaw or policy. CUNA declined to comment but said Monday it is reviewing the league's decision to allow direct membership.

In a prepared statement, Ensweiler said the leagues and CUNA are better together.

“By connecting a strong local or regional presence through an association like Cornerstone with operations in Arkansas, Oklahoma and Texas, with a national association focused on national legislative and regulatory advocacy, we can have a direct impact for credit unions in their communities and in Washington, D.C.,” he said.

He noted Cornerstone's efforts in three state legislatures in 2015 resulted in significant victories for credit unions, including the league's work with local and national regulatory agencies that bridged the gap between credit unions and regulators, which in turn mitigated the regulatory burdens for many credit unions.

“Each of these strategic initiatives is supported by our relationship with CUNA, which works every day with professional staff and expertise in legislative and regulatory advocacy to ensure a favorable political environment for credit unions both locally and nationally while protecting and preserving the political climate for credit unions,” Ensweiler said. “It's clear to me that the depth and breadth of service in a strong, interdependent league/CUNA credit union system is unmatched. We will continue to work to ensure this message is shared and clearly articulated with credit unions.”