League CEOs React to Historic CUNA-NAFCU Merger News

In the fall of 2021, Illinois Credit Union League President/CEO Tom Kane received a call that led to Tuesday’s historic announcement of the proposed merger of CUNA and NAFCU that will create America’s Credit Unions.

“This whole thing started when I received a phone call from now-retired State Farm Federal Credit Union CEO Tom DeWitt, who was the NAFCU chair at the time. Tom knew I was a director on the CUNA board, and he reached out to gauge CUNA’s interest in talking about working together on some things after a long estrangement between the two organizations,” Kane said. “The call was just to help set up a meeting, but at the time I allowed my mind to race to a day like today when the two national trade associations announce a merger.”

Kane said DeWitt and the NAFCU executive committee held that meeting with the CUNA executive committee at the CUNA Governmental Affairs Conference in 2022.

“Many meetings, discussions, negotiations and compromises later, credit unions are in the position of soon having a single national association,” he said. “Credit unions across the country owe a debt of gratitude to Tom for picking up the phone and leading the initial discussions that culminate in today’s announcement.”

For Kane and other league CEOs, the merger is wonderful news because the industry will have a single, strong advocacy voice in D.C. and around the country.

“For years, CUNA, state leagues and credit unions have discussed the need for one unified voice representing credit unions at the federal level,” League of Southeastern Credit Unions & Affiliates President/CEO Patrick LaPine said. “While this merger is still not finalized, it is the right strategic consolidation for the movement. LSCU & Affiliates supports it and stands ready to work to ensure its success.”

Ron McLean, president/CEO of the Cooperative Credit Union Association, said, “Having one voice and a stronger voice nationally will advance the credit union movement’s growth and success and encompasses the three-tier system.”

“Throughout our transformative journey in creating the GoWest Credit Union Association, we learned firsthand that opportunities like these provide industry organizations, especially trade associations, to better position themselves to serve the future needs of credit unions,” GoWest Credit Union Association President/CEO Troy Stang said. “We applaud the leadership of the CUNA and NAFCU boards as they harness their resources to create a unified strong voice of credit union advocacy for America’s credit unions.”

Louisiana Credit Union League President/CEO Juan Fernandez said the intent to merge two extremely credible organizations is a tremendous opportunity for the credit union system.

“I appreciate the uniqueness of both CUNA and NAFCU, however, having a solid, unified voice will create greater impact toward advancing our movement nationally. I have no doubt this will foster first class advocacy and support for credit unions,” he said. “This merger will only strengthen [LCUL] and our commitment to promote and protect Louisiana credit unions. With a stronger association at the national level, we can be that much more effective at leveraging the power of collaboration here in Louisiana.”

Beyond the initial announcement, CUNA and NAFCU released Q&As that include additional details about the merger for their members, partners and the media. However, many of the answers are general, repetitive and somewhat vague – perhaps because some of the information is not yet available.

For example, the organizations assert the merger will increase value and efficiency for members and maximize cost benefits, but there is no data to support this cost benefit claim. As far as how the merger will impact the membership structure and dues, CUNA and NAFCU members will have to wait until their packages arrive in the mail in the fall prior to the close of the member vote in November, according to the member Q&A. And while CUNA and NAFCU said voting will begin later this month, they have not yet specified on what date the voting will begin and on what date the voting will end.

The new organization’s headquarters will be in D.C., though the member Q&A doesn’t mention what buildings will remain open and whether there are plans to close any other buildings the organizations currently use for their operations.

The member Q&A also provided a general answer to staff retention and whether there be any job losses because of the merger: “This merger will present opportunities for the staff of both associations. We will be transparent with employees at every step of the way. While we can’t guarantee specific positions at this time, we will prioritize fairness and respect for all employees throughout the merger process.”

However, the member Q&A offered details about the structure of America’s Credit Unions’ board of directors and who will be eligible to run for a board position.

The board of directors will include 16 seats, consisting of 15 transition directors and one CEO. Each transition director, except the CEO, will have voting authority. Seats for nine transition directors, each of whom is a current member of the CUNA board of directors, will be filled by the following individuals: Seven persons, each of whom is a current employee or voting director of a natural credit union that is a voting member of CUNA; and two transition directors designated by the credit union leagues that are members of the combined entity, each of whom must be a then-current president of such league. The remaining seven seats will be filled by six transition directors, each of whom is a current member of the NAFCU board of directors, and one director who is the CEO of the combined entity.

CUNA and NAFCU said access to advocacy and compliance teams and tools, educational opportunities and research offerings will remain a top priority, but specific services, resources and benefits that America’s Credit Unions will offer will be communicated over the course of the merger.

The organizations also said while association events, conferences and networking will also be a top priority, any changes to these offerings will be communicated over the course of the merger.

CUNA and NAFCU said they will communicate with employees, members, partners and vendors throughout each step of the process, while soliciting feedback and answering questions.

“We want to hear from all our members throughout this process, which is why Jim Nussle, Dan Berger and other leaders from both CUNA and NAFCU will be prioritizing their time over the next few months to talk with as many of you as possible,” the organizations said in the member Q&A. “It is our top priority to listen and best understand your needs as we merge into one single association. Accountability and increasing focus on your needs will be the key to success for this new association, so it’s critical that we hear from you.”