SHEBOYGAN, Wis.–CU Daily readers and the credit union community have a lot to say! As the most robust marketplace for opinions and discussion, here’s just some of what readers have had to say about recent reporting by the CU Daily. As always, the CU Daily welcomes reader input at any time.
New Group for CUs Under $500 Million in Assets Unveils its Name, Shares Additional Details
The Story
WASHINGTON — After months of what it said has been development and collaboration across the credit union industry, a new national trade group for credit unions beneath a certain asset threshold has officially announced its new name: the National Small Credit Union Association (NSCUA).
‘Just What We Need’
Just what we need – another industry trade group that over 80% of all credit unions are eligible to join. Small CUs have been vocal about their disdain for large CU’s while calling for unified movement. We have already have a few bank organizations lobbying against large credit unions, we don’t need another one.
No Put-Downs
Interesting comment. This organization doesn’t seem to be interested in trying to put down big credit unions at all, rather providing something more specific and helpful for the small ones, that are struggling to survive. Why is that a problem for you, exactly? Maybe *you* don’t want a small credit union association, but many of us welcome it. -Doug Wadsworth
Why No ‘Unity?’
Well, you do just fine putting them down, so you’re right, we don’t need an association to do it. Would just like to know how small CUs lament large credit unions, tell them are to blame for their lot in life, and then wonder why there isn’t a united “movement”.
A ‘Great Addition’
I didn’t get any of this from reading about what NSCUA is trying to do. I think it will be a great addition. Just like CUWLA has been a strong addition to the movement.
Not About ‘Disdain’
I don’t think this is about “disdain” for large credit unions. It’s about acknowledging that not all credit unions are dealing with the same challenges right now.
‘Real Pressure’
Smaller CUs are under real pressure. If a group wants to organize to provide more targeted support, that seems like a reasonable response, not a threat to the movement. The number of people seeing it as a threat it weird to me, almost suspicious.
‘You Don’t Have to Participate’
Not every initiative has to serve every credit union. If it’s not relevant to you, you don’t have to participate. BTW, criticizing others in the movement for organizing around different needs doesn’t exactly model the unity that is being call for.
Difference Between Unity & Uniformity
There’s a difference between unity and uniformity. Unity works through differences. Uniformity asks people to ignore them. If we can’t be honest about what different credit unions are facing, it’s hard to see how we move forward together.
Been Waiting a Long Time
Not every effort in the movement is about large credit unions or leagues. This is simply about addressing the needs of small credit unions. We’ve been waiting for this for a long time, highly anticipated!
‘Excited About This’
My entire team is excited about this. We’re really looking forward to having something dedicated to us. hope it’s something we can actually afford
‘Absolutely Needed’
So excited for this! Absolutely needed and will definitely be additive to the movement!
‘This is Great!’
This is great! Any voice promoting Credit Unions getting back to the basics of “People Helping People” is an awesome step forward.
Member Who Has Raised Objections to SAFE/BECU Merger Presses Legislators to Nix Combination
The Story:
SACRAMENTO, Calif. — A Sacramento-area credit union member who first raised concerns in a letter to the the Sacramento Bee is now pressing state lawmakers to intervene in the proposed combination of Sacramento-based SAFE Credit Union and Seattle-based Boeing Employees Credit Union (BECU), saying recent meetings with legislators have heightened scrutiny of the deal.
Attention Should be Paid to Board Elections
Someone should really bring some attention to BECU’s board elections in general. Typically, a credit union’s board of directors is elected by members to provide independent oversight of the CEO and executive team. The CEO runs the organization, but is not part of the board that oversees them.
This year at BECU, the CEO is included in the board elections which is not common. When the person being overseen is also part of the governing body, it naturally raises questions about independence.
It’s also worth noting that BECU’s board elections have historically run unopposed, meaning members aren’t choosing between candidates. They are hand selected by the executive management team which is also a conflict of interest.
None of this is necessarily about individuals, but structurally it’s different from how many credit unions operate and it’s fair to ask how much independent oversight and member choice exists in that model.
And for those wondering, board roles at credit unions are typically compensated separately from executive roles, which is another reason clear separation between the two matters. So, if the unopposed CEO is elected to the board are they getting two salaries. Everything about this raises red flags to me.
Headed for the Exits
Someone should from SAFE should ask why BECU’s General Counsel, Chief Auditor, Chief Risk Officer, Chief Impact Officer, and Chief Business Officer all decided to leave, more or less at once. Nothing normal about that.
‘You Can’t Claim Credit Union Values’
Glad these conversations are happening and that he’s asking the right questions—he’s pushing in the way more people should.
What’s becoming clear, though, is that the credit unions don’t really have strong answers—they just have strong PR. BECU, in particular, is very good at managing perception.
Underneath that, the leadership approach feels far more like a traditional bank than a credit union. The new CEO comes across as performative at best—saying the right things publicly, but not reflecting that same philosophy behind closed doors.
Internally, employees have described leadership as political and calculated—always saying the right thing publicly, but the moment anyone questions it, they’re pushed out, fired, or laid off.
BECU isn’t new to working the layoff systems with minimal NDA’s and severance packages. Last April, several employees were let go, and shortly after, nearly identical roles were reposted and filled—often through existing networks or familiar circles. All while moving forward with a costly (millions!) and terribly structured naming rights deal.
You can’t claim credit union values while operating like that.
‘Little Reassurance’
The 18 month no layoff should be little assurance. BECU needs those employees until they get on the same system. After they do, and when the SAFE CEO leaves at 18 months, there won’t be local leadership and no one to protect the local employees and community. Since BECU’s expense issue is so severe, there will be a lot of job reductions in CA.
Does Not Benefit SAFE Members
I appreciate that he’s taking a stand and pushing back. That matters.
That said, legislators are unlikely to be the lever that changes this. A coordinated member campaign and vote will be far more effective in influencing the outcome.
He’s right, this does not clearly benefit SAFE members.
When you look at the broader context, it raises bigger questions. BECU has brought in leadership from problematic banking institutions and has incentives tied to growth, mergers, and consolidation. That shifts the lens from member value to asset expansion—and, at its core, greed.
And that’s the core issue.
These are the types of mergers that make the industry pause and ask harder questions about intent, alignment, and accountability.
Credit unions are built on trust and member-first philosophy. When decisions start to look and feel more like bank-driven strategies, it challenges that foundation.
This is exactly where scrutiny is not only warranted, but also necessary.
Only a Member Campaign Will Work
It’s highly unlikely that the legislature will effectively intervene here, and the regulators have no basis not to approve this merger. Mr. Rose needs to mount a member campaign to influence SAFE members to vote against it. Boeing has lost its culture under the new CEO, execs are bailing, they can’t grow, their Board is very highly paid, and their leaders get bonuses based on revenue and profit measures. They have become a for-profit bank and SAFE might as well merge with Wells Fargo. They need this merger to mask their own inefficiency, which means job losses in California will be very high.
Our Movement Requires More Than Empathy—It Requires Redistribution of Influence
The Story
Opinion Piece by credit union CEO Jim Drake responding to a recent view expressed abut smaller credit unions.
What the Real Goal Should Be
A growing number of small credit unions are interacting with billion-dollar credit union peers on a fairly regular basis. We share the same challenges, just at another scale and with different levers at our disposal. The economies of scale have changed and many credit unions over $250 million and under $3B have told me that this is the not the place to be. You have the expectations to offer everything and not yet the economies of scale to cover the expense of the complexity.
Both large and small credit unions are important to the movement. Small credit unions are disappearing and many agree that that small credit unions fulfill an important need in communities across the country. Small credit unions provide thrift (and education) to members who were turned down because they didn’t fit in the box at local banks and larger credit unions. Our goal should be to work together co-operatively to ensure a future for all credit unions. – Jim Drake and author of the article
Asset Size Isn’t a Cure-All
Part of the problem is the mentality among small credit unions that large credit unions are “insulated from compliance costs, vendor pricing and examiner subjectivity.” The sooner small credit unions realize that asset size isn’t the cure for all problems, the better off they will be. Best to remember that small and large credit unions share one thing in common – they all started small.
Butterfield is right -small credit union mergers are a reflection of Boards realizing that if their survival depends on getting a pass on regulations and expecting to be loss leaders for service providers, the maybe independence isn’t the best approach. Bigger is better, bigger is privilege, bigger insulates you from all problems, right? Who doesn’t want to be bigger?
What is Driving All These Small CU Mergers? AI Has Answers; Plus, What Every CU Should be Doing
The Story
Opinion piece by Doug Wadsworth, CU CEO who leads Endangered Credit Union Defense (ESCUD).
This is really good information. I find it interesting, and in fact contradictory, that although regulatory relief is described a “huge” factor for small credit union survival, regulatory burden or any reference to that theme is not among the many reasons for merger that were listed. Hardly a compelling case for preferential treatment from regulators. The bank lobby’s second bullet point after the CU’s pay no tax issue is that we are not regulated the same or as heavily as banks. Seems to me we shouldn’t add fuel to the fire by strongly advocating that a large segment of the industry (by number) somehow deserves more relaxed regulatory treatment. We constantly hear the “even playing field” whine from the banks, which is a credible view on the regulatory front, but we want to make it even more uneven?
Why What’s Happening With Private Equity is Prime Reminder of What Credit Unions Cannot Forget
The Story
Opinion piece by Peter Rice, CEO of Hanscom FCU
A Lesson from the Past
Many folks reading this article have spent their careers in Credit Unions and don’t see this topic as being relevant. However, about 25 years ago I lost a commercial lending deal to an insurance company that was getting into real estate securing lending. The trend of commercial borrowers looking for other financial lenders outside the traditional banking system has been slowly happening for years. As credit unions expand interest into commercial real estate lending, it is appropriate to be aware of all the competitors and private equity is definitely one of them as Peter notes in the article.
Need to Know the Difference
It’s Ok to be aware of others, but let’s acknowledge credit unions aren’t even relevant to this conversation. Credit unions are also the new ones the commercial space, not the other way around. It’s also private credit, not private equity. Those are very different things. Knowing the difference is the start of any awareness the industry needs.
