Skip to main content

Don't miss our opening session Saturday 10/1 in Denver.

We have a panel of 4 firefighter credit union CEO's, Michael Tobler, Linda Willams, Gene Benick and Wallace Garland discussing the reasons for and the pros and cons of mergers.

 A Blog post from Tim Harrington, CPA
CEO, TEAM Resources

 Did I just said the “M” word, Shhhhhh! We don’t want to talk about that. The leadership in the credit union movement treats merger talk as verboten. You don’t see much on conference agendas, or on webinars. And I get it – talking about it might come across as endorsing it, and there’s a school of thought that says that more credit unions are better for the industry.
Well…it’s no secret that there are a LOT of credit union mergers. According to the NCUA, there were 234 mergers in 2015, which actually represents a slowdown of late.
Which brings me (finally) to my point: Merging credit unions need to have extensive discussions about governance as part of the process. Cultural fit is one of the most significant issues for merging institutions and that starts at the top, with the board and this is a governance issue. I can’t count how many times I’ve talked to directors and consultants about mergers that failed because of incongruity among the board. As often as not, these are problems/failures AFTER the merger is complete. Too late.We must acknowledge that having stronger but fewer credit unions is better than simply trying to keep a large pool of charters and weak assets. Credit union membership is growing, as are the assets, despite the falling number of institutions.
  • Talk about what governance model you follow. (Carver Policy? Chait, et al? Hands on, old school?)
  • Where are you on the governance spectrum: Working – Managing – Governing – Rubberstamping – Failing
  • Align yourselves with some training, with everyone in the room and literally on the same page.
  • Discuss governance successes and failures that each group has had over the years. How did they get there? What were the results/changes?
  • Figure out exactly how the culture of each organization manifests itself and examine the differences.
If you have boards that are merging and you don’t address these issues ahead and head on, there will be bumps at the top that make waves that ripple larger and larger as they spread through the organization, causing bigger and bigger problems.

Tim Harrington, CPA

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

New Year’s Resolution: Getting Your Estate in Order

        Helping families and their businesses plan for the future     Your Most Important New Year’s Resolution: Getting Your Estate in Order   Happy New Year to all. Every January, millions of Americans resolve to lose weight, exercise more, or learn a new skill. These are admirable goals. But there’s one resolution that matters more than all of them combined—one that most people avoid because it forces them to confront their own mortality. Get your estate in order. Not next year. Not when you retire. Now. The Problem With Tomorrow Here’s what I see constantly...
Post a Comment
Read Complete Article HERE>»

Leasing Set To Surge In 2026?—Credit Unions May Miss Out If They Don’t Move

  CINCINNATI—As credit unions look to revive auto lending in 2026 after a sluggish year, one lending tool may become indispensable: vehicle leasing. With new-car prices still historically high, negative equity rising, and manufacturers fighting for market share, leasing is poised for a major rebound this year—and credit unions that remain on the sidelines risk losing out on strong, recurring loan volume. That’s the message from Scot Hall, executive vice president at  Swapalease.com , who says the economic and market dynamics heading into 2026 are aligning in ways that make leasing not only attractive, but essential. “Prices are up and they’re not coming down anytime soon,” Hall said, noting that inflation, tariffs, supply volatility, and chip-related uncertainty continue to push vehicle pricing higher. “Leasing is a great way to combat that. It’s also a great way to get somebody out of negative equity in a relatively short period of time.” Market Conditions Are Setting the Sta...
Post a Comment
Read Complete Article HERE>»

NCUA Issues 2026 Supervisory Priorities Letter to Credit Unions

Alexandria, VA (January 14, 2026)  ― The National Credit Union Administration (NCUA) today announced its 2026 Supervisory Priorities, which continue the agency’s policy of “No Regulation by Enforcement,” while prioritizing safety and soundness. This policy underscores NCUA’s commitment to providing clarity and transparency in its oversight. The letter outlines NCUA’s priorities for the year and provides information to help credit unions prepare for examinations. This year, the agency will continue to focus on risk-based supervision, tailoring the examination scope to the credit union’s unique risk profile. Key Highlights of the 2026 Supervisory Priorities: Risk-Focused Examinations:  Examiners will concentrate on areas posing the greatest risk to credit union members, the credit union system, and the Share Insurance Fund. Balance Sheet Management and Lending:  With loan performance at its weakest point in over a decade, examiners will review credit risk management practic...
Post a Comment
Read Complete Article HERE>»

Syracuse Fire Department Credit Union

 Congrats, Tonia, on your promotion! ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Blog Job Board
Post a Comment
Read Complete Article HERE>»

A 10% Cap, A Busy Congress, And Big Stakes For Credit Unions This Week

WASHINGTON—Credit union trade groups entered the week in Washington closely monitoring developments after President Trump’s proposal for a nationwide 10% cap on credit card interest rates, even as Congress returns to work on funding, financial services reform, and digital asset legislation. Both the Defense Credit Union Council and America’s Credit Unions say the rate-cap proposal poses an immediate threat to consumers credit unions disproportionately serve, while a fast-moving legislative agenda could shape the industry’s operating landscape for years. DCUC President and CEO Anthony Hernandez said the defense-focused trade group mobilized within hours of the President’s announcement, warning the cap could sharply limit access to credit for junior enlisted servicemembers, young officers with student loan debt, and federal workers already strained by a potential shutdown. Anthony Hernandez Hernandez said DCUC began responding within hours, providing comments to the press Friday night an...
Post a Comment
Read Complete Article HERE>»

Sunday Reaing - Can the seasons really make you depressed?

    Can the seasons really make you depressed? Seasonal affective disorder   is a form of depression that repeats during predictable seasonal shifts, impacting an estimated 5% of the global population—predominantly women. Symptoms of the condition occur with significant cyclical changes in daylight hours, with prevalence increasing in regions north of 40 degrees latitude (less commonly in the Southern Hemisphere). Its etiology—or root cause—remains unclear to researchers. Though “winter blues” are commonly reported, SAD is a distinct, diagnosed subtype of major depressive disorder first formally described in 1984 ( see criteria ). Key symptoms—lasting roughly four months each year—resemble common depression: fatigue, increased sleep, carbohydrate cravi...
Post a Comment
Read Complete Article HERE>»

What Could Tokenized Deposits Mean for CUs?

WASHINGTON—Noting that the FDIC has expressed support for tokenized deposits as insured bank liabilities, not experimental digital assets, a new analysis offers some insights into what that could mean for financial institutions, credit unions and the market in 2026 and beyond.  As PYMNTS Intelligence pointed out in its report, regulatory clarity reduces risk for banks moving from pilots to live deployments, and large banks and infrastructure providers are already testing real-world tokenized deposit use cases.  “At its simplest, tokenization converts an existing claim into a digital representation on a distributed ledger,” the report explained. “The underlying asset does not change, but the infrastructure that tracks ownership and settlement does. In banking, that distinction is critical. Tokenized deposits do not create new money. They represent traditional bank deposits, issued and redeemed by regulated institutions but designed to operate on modern, programma...
Post a Comment
Read Complete Article HERE>»

IRS Issues Ruling on Federal Credit Unions and COVID Credit

WASHINGTON–The Internal Revenue Service has issued a ruling that credit unions can receive a 2021 COVID Credit, but not 2020. In other words, federally chartered CUs can’t claim the employee retention credit for periods in 2020 but can do so for periods in 2021, because later amendments to the terms of the credit made them eligible, according to the IRS. Specifically, FCUs can’t claim the credit for wages paid after March 12, 2020, and before Jan. 1, 2021. The ruling was issued by the IRS Office of Chief Counsel in a newly released legal  memorandum . According to the IRS, FCUs are able to claim the credit for wages paid after Dec. 31, 2020, and before Oct. 1, 2021, the IRS said. The Employee Retention Credit (ERC) – sometimes called the Empl...
Post a Comment
Read Complete Article HERE>»

Trump Revives 10% Credit Card Rate Cap Proposal, Offers No Details On Enforcement

WASHINGTON — President Donald Trump on Friday renewed a campaign promise to cap credit card interest rates, calling for a one-year limit of 10% beginning Jan. 20, though he offered no details on how such a cap would be enforced or implemented, Reuters reported. In a post on Truth Social, Trump said he was “calling for a one-year cap on credit card interest rates of 10%,” arguing that consumers have been unfairly treated by credit card companies. The White House echoed the claim on social media but did not provide additional guidance, and did not immediately respond to Reuters’ request for clarification, the news outlet said. Analysts have long said any such cap would require congressional action. While lawmakers in both parties have expressed concern over high credit card rates, Republicans hold narrow majorities in both chambers, and no legislation establishing a 10% cap has been enacted, Reuters noted. Several bipartisan proposals already exist. Senators Bernie Sanders and Josh Hawle...
Post a Comment
Read Complete Article HERE>»

NCUA Board to Deal With Interest Rate Risk, Loan Workouts, Derivatives

First meeting of 2012 set for next week, includes issues of considerable importance to credit unions. The agency said in its proposed rule that federally insured credit unions with assets of more than $50 million and smaller ones with potentially risky loan portfolios are required to have policies to evaluate the institution’s interest rate risk exposure, set risk limits and test for interest rate shocks. Federally insured credit unions with assets of $10 million to $50 million would have to comply if they hold first mortgages and investments with maturities greater than five years that are equal to or greater than 100% of their net worth.   Read More; NCUA Board to Deal With Interest Rate Risk, Loan Workouts, Derivatives :
Post a Comment
Read Complete Article HERE>»