TALLAHASSE, Fla. – The League of Southeastern Credit Unions & Affiliates (LSCU & Affiliates) and the Virginia Credit Union League (VACUL) said they have signed a letter of intent to "strategically consolidate," creating an association representing credit in Alabama, Florida and Georgia, in addition to Virginia.
The organizations said in a statement that they are in the “exploratory phase” of the combination.
If approved, the new organization would represent 386 credit unions and 31.5 million members. LSCU President Samantha A.M. Beeler would lead the new association, with Steve Willis, president of LEVERAGE, leading the combined service corporation.
Assessing Options
Beeler said that as the Virginia league looked at transitioning to new leadership after its former CEO, Carrie Hunt, departed earlier this year to join America’s Credit Unions, it assessed several options: hiring a new league executive or consolidating with another league. She said the conversations with the League of Southeastern Credit Unions began in March.
Virginia’s credit unions discussed the future of the league during their annual meeting in May, when league leadership was seeking to “hear what members are looking for,” Beeler said.
Jobs to be Maintained
According to Beeler, who attended elementary school in Virginia, the initial agreement calls for all Virginia league staff to be retained for two years and “hopefully longer.” LSCU has also committed to maintaining Virginia’s Credit Union House near the state capitol in Richmond, along with a strong advocacy presence, as is currently the case in the respective state capitols of Montgomery, Tallahassee and Atlanta.
“Hopefully, for Virginia’s credit unions, it will not feel like they are leaving anything and instead will feel like they are importing more resources,” including for advocacy success,” Beeler said.
Listening Mode
She said LSCU is currently in “listen to the membership mode” and will be working to “introduce ourselves” over the next few months. By November, the objective is to identify the next steps.
“It’s been a privilege getting to know the credit unions on the Virginia league board over the last few months,” said Beeler, noting members of the board were concerned with numerous issues, including the jobs of the VACUL staff. “They are a great group of leaders. They wanted to know what future success can look like. I have to give them credit. They all put a lot of work into this. They have busy day jobs. It was impressive to see people who care so much about the future of the league.”
League Chairs Issue Statements
The respective league chairs also issued statements of support.
“This opportunity brings together the strengths and resources of both organizations, solidifying a best-in-class trade association better equipped to serve the evolving needs of the credit union industry,” Richard J. “Rick” Skaggs, chairman of the LSCU & Affiliates Board and president and CEO of USF FCU, said in a statement. “This strategic move will enhance our advocacy efforts, expand services and solutions, and provide new opportunities for innovation.”
Added Jeff Bentley, chair of the VACUL Board and president and CEO of Northwest Federal Credit Union, “With advocacy being at the core of our focus as an Association and Board, we believe this move to be in the best interest of credit unions as it will undoubtedly increase our advocacy impact and influence. We look forward to continuing our due diligence to identify a path forward that will be beneficial to all Virginia credit unions."
Transition Committee Named
Joe Thomas, the president and CEO of NextMark Credit Union in Virginia, has been named chair of the VACUL Transition Committee.
“While we seek member feedback during this discovery phase, we remain committed to advancing our collective industry and serving our members with greater impact,” Thomas said in a statement. “We believe the Virginia Credit Union League and the League of Southeastern Credit Unions share the same vision for success for credit unions.”
What About Future of Leagues?
The consolidation among natural-person credit unions has led to a similar consolidation among their state leagues. Where once there was a league for each state (and in some cases in CU history, more than one association), leagues have consolidated to form associations such as the GoWest Association (Washington, Oregon, Arizona, Colorado, Idaho and Wyoming), the Cooperative Credit Union Association (Massachusetts, New Hampshire, Rhode Island and Delaware), the Carolinas CU League, the CrossState CU Association (New Jersey, Pennsylvania) and, most recently, the Utah CU Association joining with the California and Nevada CU Leagues.
Asked whether regional consolidation is an inevitable trend, Beeler stressed “there are some single-state leagues that are great advocates and that do a wonderful job representing their credit unions.”
“But coming from a background of multiple state leagues (GoWest), I know what the multi-state model looks like,” Beeler said. “Once you have that worked out and know what success looks like, bringing on another state—although it’s a fair amount of work-- it makes sense. I can see a future of more consolidation in the league system, but that doesn’t have to come at a loss of service. You still have to have hyper-local focus, but you also get the efficiencies.”