By Frank J. Diekmann
Forrest Gump had his box of chocolates, TV game shows have their mystery curtains, and credit unions have their merger disclosure forms. What all three share in common is you never know what you’re going to get.
That was all too apparent last week when CUToday.info reported its latest update on what credit unions that are being acquired in mergers are telling their members about the deals. (You can find all the latest details here and here.)
This is the point where I wish I could tell you that when you open the boxes of chocolates or pull back those curtains on CU merger disclosures what you find are nothing but your favorite flavors or the million-dollar cash prize, respectively. Like I said, I wish.
The disclosures became required by NCUA after a number of years ago it was revealed—thanks in large part to extensive reporting by CUToday.info—that far too many CU managers and CEOs, many of whom were retiring, along with board members had on their way out the door negotiated some goodie-bag deals financed with capital that belonged to their members (no-show jobs, health benefits for years to come, season’s tickets to sports teams--you know, the kind of stuff that comes with a wink and a snarky “what members don’t know won’t hurt them” remark).
Now, at least, members do have a chance to know, even if many don’t go looking. After all, they’ve come to “trust” their credit union and apathy has long been the bane of any democracy.
CEO in Disbelief
I spoke indirectly to one credit union CEO last week who was in disbelief his CU’s merger bid had been rejected by one CU that needed some (a lot) of assistance. His CU offered much better rates and other favorable pricing, is well-capitalized, would have been able to invest in the acquired CU and its members, and it offers the kind of employee benefits and perks that had me thinking about changing employers. But his offer was apparently shoved into the other CU’s pneumatic drive-thru tube, set on max and shot into the back of a passing dump truck.
Then last week he found out why when CUToday.info reported the salary bump deal being given to several top execs at the acquired credit union.
The Usual (and Unusual) Suspects
As we reported on this latest batch of 18 merger disclosure forms filed with the feds, in most cases the usual suspects was cited as reasons for the need to merge—“more products and services” and manager retirements (and no succession plan). On the other hand, one CU explained it had lost the “benevolence” of its sponsor company, while others acknowledged that as a small CU it’s damn difficult to compete.
We also got to see how many CUs opted to return net worth to the people who own it (in some cases, obviously, there was little to reserve from the reserves). We further got a peek into which were not offering any payout, with a few citing odd reasons such as the acquiring CU has more branches or, bafflingly, offers Apple Pay and Google Pay. Eh?
One CU did announce it would be paying out some of the excess capital, but in this case only to savers, with more than $2 million being distributed in all. I’m not suggesting the members of the board all had savings/CDs at the credit union and that few if any were borrowers. I’m just saying.
Sunlight may indeed be the best disinfectant, but not if no one never opens the curtains. CUToday.info has made a commitment to reporting on all the merger disclosure forms sent to NCUA, meaning we will continue to give the curtains a pull.
Even if it means melting the chocolates.
Saying Good-Bye to Mother & The Kingdom
I’ve written in this space many times of how every CU merger is not just the turning of the page in the Credit Union History Book, but in the Book of American History itself, marking the passing of once-great companies and even industries that have faded, communities that have gone fallow or grown even bigger, and even occupations for which no one is interning or apprenticing any more.
Now, in case you missed it, there is another such torch passing taking place: CUNA is vacating its once iconic digs in Madison, Wis.
As CUToday.info reported, since 1980 CUNA has leased space from CUNA Mutual Group on that company’s large campus on Madison’s west side in a building that mirrored that of the insurance company. The buildings were/are a well-known landmark for the residents of Wisconsin’s capital city, even those who have no idea what a “CUNA” is.
But as recognizable as the CUNA/CUNA Mutual buildings are to Madisonians driving along Mineral Point Road, they may be even more memorable to all those from the international credit union community who would make the pilgrimage to visit what was long considered the home of the world’s credit unions (indeed, the facilities were/are home to the World Council).
A Mini United Nations
Until last year, between the CUNA Mutual headquarters and those of CUNA stood the “round building,” better known as the International Commons. It was flanked on both sides by rows of flags representing those countries in which credit unions operated. It was a mini-United Nations (and for a while they were state-of-the-art, low-budget entertainment, as they were automatically raised and lowered).
Other countries now have fully developed credit union movements of their own, in some cases surpassing what’s taking place in the U.S. But for decades many world travelers from nascent movements marveled at the size of the CUNA offices and posed for countless photos in front of those flags.
Now that page, too, is turning. The days when CUNA Mutual was referred to as “Mother Mutual” and CUNA as the “Magic Kingdom” and when everybody just knew that credit unions didn’t need more than a couple of people working out of an office in Washington—what would they even do?--have been relegated to graphic displays of historical timelines on display at America’s Credit Union Museum.
Use Your Imagination
The International Commons has been demolished. The pandemic and the changed nature of the workplace has led CUNA Mutual to announce the space is being “reimagined.” Seems appropriate, since those who never experienced the history and those still to come in credit unions will have no choice but to use their imaginations.
Frank J. Diekmann is Cooperator in Chief of CUToday.info and can be reached at Frank@CUToday.info. Mr. Diekmann is also author of several new book, including the brand new “The Last Lyric,” a humorous satire about a murder investigation at the Rock & Roll Hall of Fame in which every line of dialogue is either a classic pop/rock song title or lyric. Available on Amazon, Apple iBook, Barnes & Noble and Smashwords. Mr. Diekmann is also author of a non-fiction compilation of the very best & worst he has seen and heard in covering more than 500 CU meetings and conferences, “501 Name Tags: How Everything You Need to Know About Business Can Be Learned at a Conference & Forgotten in the Trade Show.” It is available on Amazon, Barnes & Noble, Apple, Lulu, and Smashwords.