RALEIGH, N.C.-The Carolina CU League may raise its asset limit for what constitutes a "small" credit union.
North Carolina CU League President and CEO John Radebaugh is set to head up the new organization-the result of a merger between the North and South Carolina leagues-when it opens its doors in January, and he told Credit Union Journal that league programs for small CUs currently define "small CUs" as those with $30 million or less, rather than $50 million, the recently revised NCUA designation of a small credit union.
"In North Carolina, over half of our credit unions are $30 million and under, so that's why we came up with that number to begin with," said Radebaugh, noting that that figure precedes NCUA raising the asset size limit.
"We may move it up to $50 and under," he continued. "I think any time you talk about asset size with credit unions, it's kind of a sensitive topic. We have some small credit unions here that do extremely well. I know small credit unions-because of the sheer economies of scale-do struggle, but we have some that have figured it out. They have a good niche and they do really, really well."
Searching For Efficiencies
Both leagues currently have employees that work exclusively with small credit unions (positions that will carry over to the new league), providing services such as small CU roundtable events and business development services to assist with new product launches.
A key challenge to any small CU is operating efficiency, in addition to a hesitation to collaborate. Radebaugh said CUs in North Carolina have discussed collaborations on back office processes such as data systems, but those efforts are often stymied either by inertia or a fear of giving up control.
"Everybody says 'That's a great idea,' but when it comes down to getting it done, it's tough," said Radebaugh. "You just can't get them to move the needle."
Radebaugh said he believes one of the most important things he can do as leader of the state league is to continue to broach the topic at roundtable events and encourage small CUs to work together.
"If we don't talk about it, nothing will happen," he said. "If we could just get five credit unions together that would be willing to collaborate and get some efficiencies set," more are likely to see the benefits and sign on.
