RALEIGH, N.C. – On Thursday morning, State Employees' Credit Union re-joined the Credit Union National Association after the trade group won over the $31.8 billion CU with its "new strategy" and "new direction," especially regarding optional memberships.
SECU had been vocal in its desire for credit unions to have direct access to CUNA membership separate from any league membership requirement. CUNA members recently voted in favor of a bylaw change that allowed for direct access to either CUNA or state credit union leagues.
As the second largest credit union in the nation ($75 billion Navy Federal Credit Union of Vienna, Va., is No. 1), sent shockwaves through the CU community when it
"Our credit union disaffiliated with both CUNA and the state league over the dual membership requirement," Leigh Brady, EVP-organizational development at SECU, told Credit Union Journal. "SECU strongly believed that credit unions should have direct access to [CUNA] membership separate from any league membership requirement."
Brady added that SECU is still waiting to see how the state leagues "sort out," in terms of consolidation and whether any leagues will consider allowing credit unions from other states to join as full-fledged members. (SECU is not currently affiliated with the Carolinas CU League.)
"State leagues allow associate membership from out-of-state credit unions, but require credit unions to be members of their home state leagues," she said. "Once these issues are finalized and there is a more clear directive, SECU will make its decision."
Jim Blaine, the president and CEO of SECU, characterized recent changes in CUNA bylaws as "very significant."
"It gets us back in line with the core cooperative principle of one member, one vote," Blaine said. "Now, it's time that CUNA includes credit unions in discussions about the issues and what makes credit unions distinguishingly unique."
Blaine added that rejoining CUNA will not change the day-to-day operations at SECU. "[But it] does provide our leaders with the opportunity to re-engage with their peers on a different level in order to 'get the word out' about the good works of our organization," he said. "Our mission of 'Do the Right Thing' continues to be at the forefront of our operations, with a focus on quality member service, great rates, lower fees and a positive impact on our communities all across North Carolina."
Brady also discussed the role played by Maurice Smith, the President and CEO of Local Government Federal Credit Union (LGFCU), a $1.7-billion institution also based in Raleigh, in this development.
"SECU has always had a very close relationship with Maurice Smith," Brady stated. "Also… as a CUNA board member, Maurice has been very proactive in keeping SECU advised of changes being contemplated at CUNA and made convincing arguments about the critical role the 'new' CUNA will play in the future of the Credit Union movement. He [served] as a tremendous advocate for CUNA."(LGFCU members use SECU's branch facilities and SECU provides many support functions for them.)
John Radebaugh, president and CEO of the Carolinas Credit Union League, said his organization is "happy that SECU has affiliated with CUNA. CUNA has a strong advocacy team and the work that they do benefits the entire credit union system. SECU can play an important role in CUNA's advocacy programs and I know CUNA looks forward to their engagement and participation."
