Although the membership choice issue has triggered the most controversy, the other proposed bylaw changes would allow CUNA's board of directors to develop a dues formula that would favor neither small nor large credit unions, as well as permit the CUNA board to adjust its membership from its current maximum of 24 to a minimum of 12.

"Clearly, the most abundant issue is how can we continue to still work together and create an environment of interdependence even though we're not structurally tied that way, so we can continue to serve credit unions and their members into the future," Jury said. "And I don't know why things need to change significantly from that. There may be some membership pickups and there may be some members you lose, but you have to carry on."

He added, "I'm fairly optimistic about the nature of what's happening. I don't know that you can create a long-term trade association at the state and national level where you have members that just don't like a certain aspect of your membership policies. I don't think that creates a good, long-term, positive future for either state leagues or CUNA."

However, other credit union leaders' reactions differ, and some are not so optimistic.

"The idea of membership choice sounds very good," Sterling Nielsen, president/CEO of the $5 billion Mountain America Credit Union in West Jordan, Utah, said. "If asked if we would rather have choice or not – most would say certainly I would. The better question to ask is: Will the proposed changes allowing for membership choice strengthen or weaken the advocacy efforts for credit unions?"

Nielsen is also a board member for the Utah Credit Union Association, which backed keeping the dual membership – something seven other state leagues also publicly supported.

"If we are asking for membership choice because we are upset with our state association and/or CUNA or because we are state chartered or perhaps to save a few dollars, we are losing sight of the big picture," he said. "Admittedly, there are some problems within our system. We are better served to fix the problems rather than weaken the system. Our weakness and division is the best gift that bankers could ever ask for. Now more than ever, we need to stand together with a unified voice in Washington D.C. and in every state capitol."

John Murphy, president/CEO of the Maine Credit Union League, which also wants to maintain dual membership, said even though it's unknown what the future credit union system will look like under membership optionality, he believes there is going to be some splintering.

"Obviously, it's going to be different going forward, but only time will tell what these decisions will have on the overall strength of the credit union system," he said. "As I look at the dual membership requirement, however, it certainly has been a significant factor for credit unions achieving such strong state and national presences over the years, so I have seen the benefits of the dual membership requirement."

Wally Murray, president/CEO of the $584 million Greater Nevada Credit Union in Carson City, Nev., and a board chair for the California and Nevada Credit Union Leagues, said he is hoping membership choice will bring back credit unions that have not been members of the system.

The California and Nevada Credit Union Leagues recently voted to permit membership choice next year if the proposed CUNA bylaws are approved. In January, the Virginia Credit Union League also approved membership choice following CUNA's decision to amend the bylaws.

"While we were appropriately deliberative in reaching the decisions for our two state associations to support optionality, ultimately the hand-wringing and angst our system has gone through for the last several months only truly makes a difference if credit unions that are currently outside of the process decide to re-engage in the spirit of cooperation upon which our movement was founded," Murray said. "In the end, that is the only way we can collectively protect and advance the credit union charter for the benefit of American consumers and the businesses they own."

Dave Adams, president/CEO of the Michigan Credit Union League, is confident that membership choice will not weaken the movement's advocacy as long as leagues and CUNA continue to prove their value proposition that convinces credit unions to join their organizations.

The Michigan league was the first state trade organization to offer membership choice for Michigan's cooperatives this year, but it also pledged to aggressively encourage credit unions to maintain both memberships.

"We knew by offering dues choice, there might be some disaffiliations from CUNA, but they have been minimal," Adams said. "In fact, based on dues paid and verbal commitments, we are expecting a 99% affiliation rate with the Michigan Credit Union League, up slightly from 2015, and our CUNA affiliation rate will be 97%, well ahead of the national average that I believe is right around 90%. In the association business, there will always be credit union leaders who have concerns about dues levels and/or results. Every year, some don't renew their membership and others rejoin after being out of affiliation. We intend to work hard to serve 100% of our credit unions on behalf of CUNA and MCUL. And again this year, we see very strong support for both CUNA and MCUL."

In Michigan, Adams said, the CUNA-Michigan league value proposition is being well received and is a very strong affirmation that the credit union community understands the need for a strong CUNA-league credit union system.

"The job is much more difficult in Washington than it is in Lansing because federal regulators and the U.S. Congress present much greater obstacles than what we see at the state level," Adams said. "As such, we expect that perceptions and support for CUNA will tend to be lower than they are for the state association. That said, we're committed to listening to our credit union community and then taking bold, aggressive action on their behalf. Advocacy results matter and working with our sister leagues and CUNA, we will improve the way we generate those results in strengthening all four pillars of our value proposition, especially in the area of removing barriers."

Credit unions in the Carolinas have until March 1 to pay their membership dues, and cooperatives in the Southeastern leagues and the New York Credit Union Association have until the end of the first quarter to pay their dues. The Ohio Credit Union League did not respond to CU Times' request for affiliation numbers.

"I can say that we are ahead of schedule compared to this time last year as it pertains to dues collected," Patrick LaPine, president/CEO of the League of Southeastern Credit Unions, said. "All 2015 credit unions that have paid their dues thus far have paid both their LSCU and CUNA dues. We expect to have another strong year as it pertains to affiliation."

Another issue is that membership choice may lead to brutal competition among the leagues for new members because credit unions, particularly the large-asset ones and those that operate in several states, will have the freedom to join any league.

"We've had several leagues say, 'Hey, we sure would love to have you,'" Jim Blaine, president/CEO of the $31.8 billion State Employees' Credit Union in Raleigh, N.C., said. "We are going to look at all the trade associations. We have had offers from several other leagues."

Blaine said he's also had conversations with the Carolina Credit Union League. Two years ago, Blaine decided not to renew the credit union's combined $340,000 membership dues – $250,000 to CUNA and $90,000 to the Carolinas league – because serious issues were not being addressed by both organizations.

Although he supports membership choice, he pointed out the proposed CUNA bylaws could be rejected because at least eight leagues, including the largest state trade organization in the nation, the Cornerstone Credit Union League, has publicly supported maintaining dual membership.

In Blaine's view, there was also a lack of a timeline for discussion and implementation of CUNA's proposed organizational reforms, which may compel some members to vote against them.

"I think in a democratic organization, issues usually involve a lot of conversations and the exchange of information, which gets real messy because people get together and talk about difficult ideas and all of that," Blaine said. "You've got to go through that process and I'm not sure that process is visible. I don't see that connection to the membership and maybe it's being filtered through the leagues and maybe it's going on, but I'm not sure it is."

Nonetheless, if the proposed bylaws are approved, Blaine pointed out the membership choice issue could eventually lead to the merger of CUNA and NAFCU due to industry consolidation and economic realities that are forcing state leagues to merge.

"What CUNA is doing creates that [merger] as a possibility in the future," he said. "It would never happen as long as the leagues are connected to CUNA. That's a subtlety that I don't think everybody gets."

Ed Templeton, president/CEO of the $732 million SRP Federal Credit Union in North Augusta, S.C., who also serves as NAFCU's board chair, declined to comment.

CUNA did not respond to CU Times' request for comment about the possibility that membership choice could lead to a merger with NAFCU, nor to Blaine's criticism.