Cornerstone League Will Consider, But Not Looking for More Members

AUSTIN, Texas – As the Cornerstone Credit Union League nears its second birthday, its CEO says the organization is working well for CUs in Texas, Arkansas and Oklahoma.

In the spring of 2013, a series of votes in the three states approved the combination and the Cornerstone CU League officially began operations in July of that year.

At Cornerstone's annual meeting here last week, Dick Ensweiler, president and CEO, told Credit Union Journal that consolidation was necessary because while the number of CUs is shrinking, "the scope of the services credit unions expect from their state leagues does not shrink" due to regulations, new technology and other factors.

"We were on the forefront, and I think we will see further consolidation going forward," Ensweiler said. "We just happened to be at the right place at the right time."

Ensweiler, who led the Texas Credit Union League from January 1994 until the consolidation, said the Oklahoma CU League "knew it needed to partner up" due to a declining number of CUs, and had been examining the issue for roughly four or five years prior to the merger.

The Texas League, he added, has "always had a close relationship with" the Arkansas CU League.

"We need to be as relevant as our members expect us to be," Ensweiler said. "It is very difficult today as credit unions disappear, but the Cornerstone League is in good shape. We have mass, we have numbers and we have a high affiliation rate, which shows our members are engaged."

Coming Trend?

Just five months after the Cornerstone League fired up, the formerly separate state CU Leagues of North and South Carolina began joint operations as the Carolinas Credit Union League on Jan. 1, 2014. Then, in December 2014, the state leagues in Kansas and Missouri publicly discussed aligning operations – although they eschewed the term "merger."

Though consolidation of state leagues seems to be a trend worth watching, Ensweiler told CU Journal his League is "not actively seeking and not actively recruiting" others to join the fold.

"I am not sure if another state league will join," he said. "We deliberately did not call it the ‘Southwest League.' But if we were given the opportunity to add another we can, because we invested heavily in league management software that is scalable."

Increased Advocacy

When the state leagues of Texas, Arkansas and Oklahoma combined, they retained "satellite offices" in Austin, Little Rock and Oklahoma City, respectively. Ensweiler said they operate as branches, or DBAs, of the Cornerstone League and have led to increased advocacy on behalf of credit unions in each state's legislature.

"Legislators and press want to speak with local people. A lawmaker in Little Rock doesn't care what Dick Ensweiler in Dallas has to say. We have to be aware of state-level laws that affect credit unions."

Ensweiler said when the three-league merger was being contemplated the main promise to the states' CUs was increased relevance, not cost efficiency.

System Strong

CUs have a "system" comprised of natural person credit unions, state leagues and CUNA, Ensweiler noted. He lamented the fact some have expressed a desire to belong only to CUNA or only to their state association.

"The strength of the system is not understood," he declared. "We have been enormously effective because all three parts operate as one. Some make noise about only belonging to one or the other, but I think that is naïve. This system is the envy of many trade associations. [CUNA President] Jim Nussle, as a former Congressman, understands the strength of the system. We have boots on the ground, we have ears on the ground. We have the ability to talk to Congressmen when they go home and when they are in D.C. The states do not have to hire lobbyists in D.C."

"Credit unions have an amazing system that is not always appreciated," he added.

Still Having Fun

One of the speakers at the Cornerstone League's Annual Meeting revealed to the crowd Ensweiler now is 74. Asked how much longer he would stay at the head of the organization, he laughed and said, "I am still having fun, and my health is still good, so there is no reason to think it should not continue for a while."

As he looks to the future, Ensweiler said he is "pleased with what" he sees in credit union land.

"Times are getting tougher, so the reasons to stick together are bigger than ever. I like that NCUA says it will reduce regulations. What I would really like is for Congress to do what is good for the country rather than individuals doing what is good for their party – then we would really have something."