Category: Co-ops in Capitalism

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Standing on the Shoulders of Others

Recently a CEO reported on a new event for his credit union:

Earlier this month the Executive Leadership Team and the Chairman hosted the First Annual Credit Union  Alumni Breakfast with 17 retired employees and volunteers. Special thanks to key staff for their work in putting on this special event.

Today we stand on the shoulders of these employees who have come before us as they laid the solid financial, operational, and philosophical foundation upon which we are building today.

We asked each attendee to share their favorite credit union memory.  They  can be summarized simply – the PEOPLE. To a person they shared that it was the members and/or colleagues that made this the best place they have ever worked.

They shared story after story about the changes in members’ and employees’ lives, and in many cases, how these interactions changed their own lives. We know that for so many of these retirees this was not just a job, but part of who you are.  So we will continue to cultivate that community, even after you have retired. These Alumni are some of the best Ambassadors in our community.

Celebrations Create and Honor a Shared Past

Yesterday was May Day, an informal, country-wide celebratory event in England.  My daughter sent several pictures of how the Day begins with the ringing of the bells and singing by the boy’s choir from the tower of Magdalen College. Oxford.

The event commemorates not only the beginning of spring, but the common destiny we all share with nature.

Merry Makers on the way to the Tower:

Bells ringing and boy’s choir singing to bring in Spring-with 14,000 early risers.

A Visit by Louise Herring to NCUA

In Ed Callahan, Bucky Sebastian and my first year at NCUA, Sam Rizzo who was the CEO of ASI (then NDGC) made a special  effort to bring to D.C. the last living attendee from CUNA’s founding at Estes Park, Colorado in 1934.  Louise Herring spent her entire life promoting, leading and founding numerous credit unions and supporting firms (such as ASI).  She had to travel attached to an  oxygen breathing cylinder.

Her mind and commitment were as sharp as ever.  Field of membership for FCU’s was a hot button issue. Her belief was that all Americans should have credit union access.  In her memorable phrase, “Poverty is not a common bond.”

The incredible chartering and organizational efforts of her era and the passion for the movement were apparent to everyone.

Louise is just one example of the pioneers who devoted their lives to lay the foundation for credit unions today.  Her commitment was a memorable experience for everyone she saw.

Recognizing past credit union regulatory leaders was an integral aspect of Chairman Callahan’s role.  Just one example. He honored his predecessors at NCUA and in the HEW’s  Credit Union Bureau by asking them to come to D.C. to celebrate the 50th anniversary of the Federal Credit Union Act in 1984.

Earlier that year Ed presented the Agency’s highest honor, a gold medal, to recognize many whose tenures were only recorded in official reports. (see Dean Gannon’s medal award)

Current and prior federal credit union regulators, General Counsels, and Executive Directors reunite  at NCUA’s headquarters, 1776 “G” Street, Washington D. C. on the 50th anniversary of the Federal Credit union Act.

The Past Makes the Present Possible

It is always tempting to believe when one achieves a position of great responsibility, that the future begins with their arrival.  The past is gone.  Those are the achievements of others.  Now it is our turn to pivot with new beginnings.  After all who wants to just carry forward the success of others when every impulse is to put one’s own imprimatur on events?

However, without a knowledge of the past it is difficult to sustain a sense of common purpose or community with others.  Each leaders turn at the wheel becomes a unique episode.  The lessons of prior efforts are overlooked.  The successes are taken for granted, because they seem just to endure naturally.

But that is not how lives or even organizations are remembered.  When individuals are at their best, their work and example transform the moment.   There is a moral component that recognizes the worth of each person, and a commitment to common good, not merely individual or organizational momentary success.

Every society has its May Day celebrations.  They create a shared heritage that goes back generations in England.

Current leaders and CEO’s of organizations may not know or even be interested in their predecessor’s  success or viewpoints.  The past leadership is gone and I am now in charge.  Some CEO’s are uncomfortable even talking with their forebears.

Knowing the history of any organization is vital to continued relevance. That is why I believe this credit union’s inaugural Alumni breakfast matters.  Honoring leaders from different eras and circumstances, gives meaning and context to current events and decisions. How a leader remembers their predecessors is a good indicator of how one’s own tenure is likely to be recalled.

 

 

 

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What Should the Role of TDECU Member-Owners Be In a Major Bank Purchase?

Yesterday the $4.7 billion TDECU announced its intention to purchase the $1.2 billion Sabine State Bank and Trust whose head office is in Many, LA

The joint press release  states:  Founded in 1901, Sabine has a footprint of 51 branches across Louisiana and east Texas and had approximately $1.2 billion in assets as of March 31, 2024. Sabine is an active lender in its markets and specializes in lending to the oil and gas, forestry, timber and agriculture sectors.

The CU Today article quotes TDECU’s CEO’s ratiionale for the purchase as: “TDECU is on a growth journey to expand across the state of Texas and beyond.”

The transaction is for cash. No financial details except broad asset totals were given.

The size of this $1.2 billion transaction (25% of TDECU’s balance sheet) the probable cash outlay of several hundred million if the price is in the 1.5 to2.0 times book value, and the operational/business expansion (51 more branches added with the 34 already),  plus new risk exposure to commercial lending raise critical questions:  What is the members’ role in this $1.2 billion purchase?  What should board and senior management be informing them about an action that could transfers as much as 50% of TDECU’s $465 million of collective savings to the bank’s owners?

TDECU’s Performance

TDECU’s 2023 yearend performance shows slightly  negative loan (-2.19%) and share growth (-2.55%). External borrowings total $310 million, a 14% increase over 2022. The credit union’s loan to share ratio has hovered around 100% for the past several years.   Delinquency is at 1.59%, ROA is .70% and net worth 10.06%.  Steady but not superior performance.

The credit union reports 386,000 total members out of a potential of 30 million.

What is the Members’ Role?

TDECU held its annual members meeting on March 23.  Was the CEO’s ambition of embarking on “a growth journey in Texas and beyond?” outlined there.  Or, were members not informed about board and management’s efforts to commit a significant portion of their net worth to a bank purchase?

The members are the owners. It is their collective savings accumulated over decades that has provided the ability to consider such an acquisition.  But what is in it for them?  What will be the return on their equity as TDECU’s ROE historically is in single digits?  How will this out-of-market expansion better serve their needs?  How will the “cash” be raised–will the credit union have to increase expensive external borrowings or seek subordinated debt to complete this transaction?

Putting TDECU’s Future on the Line

The financial size and business scope of this transaction puts the future of TDECU on the line. Members should be given full financial details including how large the intangible Goodwill asset created by the event will be.

Without full disclosure, the customary process in public bank to bank transactions, the members are left in the dark.  Management is not being held to any performance outcomes.  The traditional member-focused core service model is being put at risk to underwrite an expansion that has yet to be explained in any relevant detail.

Presumably full financial projections are being presented to the regulators who must approve this deal.  Shouldn’t the member-owners who are bankrolling this transaction be given the same details?

This transaction is not just a financial event; it is an obligation for TDECU’s board and senior management to be fully responsive to THEIR owners’ interests in this most consequential step.

 

 

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“Climbing Ladders to Nowhere”

A reader sent the following after reading Ed Callahan’s last interview as Chairman of NCUA. In that conversation he focused on the relationships between the agency and credit unions.

Hey Chip – I am just reading this.  My husband and I were camping in the wilds of Utah with very sketchy service.  In the “old days” it truly was a partnership with the Agency. 

Being a CEO my entire career, I was always highly engaged with the Examiners when they were in my credit union.  It was always a very positive relationship where we learned from each other.  Unfortunately, it devolved over the years into an “I GOTCHA” encounter. . .

Losing Our Heart and Soul

Greetings Chip!  I continue to read your blog . . .  After the latest news about more Illinois credit unions merging, I finally felt compelled to write down my thoughts on this issue.

I will publish his thoughts in the future.  These are his opening paragraphs:

Credit union mergers have been happening for decades.  Some are forced by the regulators, some are voluntary, and there are a multitude of legitimate reasons.  But as I celebrate 32 years in this industry, it is still sad to see the number of credit unions that disappear every single year, and to see the pace of mergers pick up every year.  When we lose our small credit unions, we are losing the heart and soul of our movement that makes credit unions special.  

I know that no matter the size, credit unions are still member-owned, not-for-profit financial institutions.  But it is difficult to argue with the fact that as we grow larger, whether organically or through mergers, that members have less of a voice. . .  And I fear that we are becoming just another industry, instead of a movement.

No Longer a Movement?

There is no doubt credit unions are becoming more and more “mainstream.”  They tout their promotions with professional sports franchises, stadium naming rights and multiple business partnerships.

Growth is the dominant success indicator.  Credit union lobbyists argue in tandem with banks against the consumer protection initiatives of the CFP.  NCUA’s Chair cites the FDIC as a financial model for the NCUSIF and positions his supervisory initiatives  because that is how banking regulators act.

In becoming an important component in America’s financial sector, have credit unions also embraced the status quo?  Are they more concerned with protecting their achievements than addressing the economic inequities members face in the economy?

An observer might give examples on both sides of the “movement” issue.  However, I believe credit unions are not alone in their constant temptation to be seen as fully engaged participants in the so-called “free market.”

“The Only Game in Town”

Franciscan scholar Richard Rohr describes the ever-present allure of America’s economic system this way:

Most of us have grown up with a capitalist worldview which makes a virtue and goal out of accumulation, consumption, and collecting. It has taught us to assume, quite falsely, that more is better.

It’s hard for us to recognize this unsustainable and unhappy trap because it’s the only game in town. When parents perform multiple duties all day and into the night, that’s the story line their children surely absorb. “I produce therefore I am” and “I consume therefore I am” might be today’s answers to Descartes’ “I think therefore I am.” . . .

The course we are on assures us of a predictable future of strained individualism, environmental destruction, severe competition as resources dwindle for a growing population, and perpetual war. Our culture ingrains in us the belief that there isn’t enough to go around, which determines most of our politics and spending. . .

F. Schumacher said years ago, “Small is beautiful,” and many other wise people have come to know that less stuff invariably leaves room for more soul. In fact, possessions and soul seem to operate in inverse proportion to one another. Only through simplicity can we find deep contentment instead of perpetually striving and living unsatisfied. . .

St. Francis knew that climbing ladders to nowhere would never make us happy nor create peace and justice on this earth. Too many have to stay at the bottom of the ladder so some can be at the top. . .

 

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A Reaction to Patelco’s Annual Meeting

One permanent change from Covid’s impact is that organizations now live in a hybrid world.   There is the continuing day to day in person contacts and multiple virtual options for meetings and corporate events.

For example, most churches no matter the size, continue to provide both in-person and simultaneous zoom or YouTube broadcasts.  Restaurants continue to promote takeout options in tandem with full dine in re-openings.

In some instances I have found even local persons reluctant to meet in person, preferring the remoteness of a zoom conversation.

The Digital Hybrid World

The virtual interactions are now a routine part of high school curriculum options.  I recently received a link to the InfoFlow morning news show from Montgomery County’s Blair High School.   This virtual broadcast replaces the morning home room announcement over the PA system.

The episode shows a news desk with two student anchors presenting daily updates.  About two minutes in there is an external report on a local historical project recorded by a school reporter in which I participate.  The full broadcast can be viewed here.

The next generation is living and practicing this hybrid reality as a normal part of their activities.

The Credit Union Application

This past Friday I virtually “attended”  Patelco’s Annual Meeting.  The video was primarily the Chairman and CEO talking at desks with senior staff members available.

The format was fully scripted, as are most annual meetings.  The minutes and numerous reports were referred to as being available on the website.  The CEO Erin Mendez gave a short update including graphs showing Patelco’s key trends versus its California peers and the top 30 credit unions nationally.   They showed Patelco’s  10.07% net worth and ROA of .77% for 2023, significantly stronger than the two peer groups.

The directors ”election” was a formality since there were just three candidates and three openings .

The most interesting point was the Q&A at the end of the prepared agenda.   There were perhaps ten questions posted in the chat that were answered by the CEO, staff and even the chair.  These included CEO and board succession planning, priorities for 2024, questions on investments etc.

This was the one chance for members to interact, even though under the control of the virtual operator.

My overall impression of the meeting was a feeling of “formal awkwardness.”  Opening comments were read.  There were motions to move and accept minutes and reports, but no visuals of the members doing so, just head shots of officials leading the meeting.

Patelco now has over 500,000 member-owners.  Several decades ago, the credit union made an attempt to connect with members by holding 50 “town hall” meetings, or one a week, at branch and other locations in their market area.   These conversations with members were led by senior staff. In at least once case the meeting was recorded on video.  The goal was to update members and to listen to their  issues or needs.   But most importantly, to be seen and be available.

Such public interactions take practice.   Once a year formal meetings with Robert’s Rules of Order are not a substitute for ongoing, open conversations with owners.

Such contacts are  the grassroots of democratic governance.   Leaders have a chance to demonstrate their skills and accountability; and most critically to earn members’ confidence for the entire leadership team.

An additional start to develop this competence might be quarterly hybrid town halls with the latest business updates and outlooks.   It is standard operating procedure for public and even private companies.  Just follow any of the quarterly reports being presented daily in this “earnings season.”

Credit unions have an even more compelling reasons for engaging in open member dialogues.  It is not about supporting the stock price or analysts’ ratings; it is a much simpler reality: “They own us.”

 

 

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Chairman Callahan’s Last Interview at NCUA

“It’s a partnership and it works”

Knowing our shared past helps us to understand the present and envision the future.  History provides our sense of community.

From the May 1985 NCUA News, Vol 2, No. 4:

From the recent interview on NCUA’s Video Network, Chairman Callahan praised the NCUA staff, saying, “It’s all working, the team is in place.   There is a sense of confidence in the Agency, and it has infected the credit union movement with confidence as well.”

The Chairman is quick to credit examiners and other Agency personnel for the successes during his term: “Most people at NCUA have a good sense of where the Agency is going and how they fit into the picture.  People at NCUA get the credit for what we’ve been able to accomplish because they brought us to the point we are now.” 

He believes three years of unprecedented growth in shares, loans, capital and membership attest to the positive effects of deregulation and to the success of credit union managers and directors when given the opportunity to make their own business decisions.

As important as deregulation is to Mr. Callahan, increasing the examiner ranks and getting Agency staff out in the field, closer to credit unions is just as important.  “Deregulation actually increased our supervisory responsibilities,” he said.  “We told credit union officials ‘You run our institutions, and we’ll be there to help.’  It’s a partnership, and it works.”

P.S.  See the reference above to NCUA’s Video Network.  This interview was the final edition, number XXI.  If anyone has this recording in their credit union collection, I would appreciate making a copy.

 

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One Member at a Time

What does personal service really mean when a credit union has over 63,500 members?

Weokie Credit Union’s Mission Statement is:

Change lives  in our community, one person at a time, by being the best place our employees have ever worked and our members have ever banked.

A Nurturing Voice

The CEO, Jeff Carpenter, gave permission to demonstrate how this is done, one member at a time, in this story from his March 2024 report to his team:

“Marlene is an elderly member who has been the victim of several recent frauds. The team got together to determine what WEOKIE might do to help (and not upset the member or violate privacy concerns). We determined that WEOKIE should try to get Marlene to add one of her children to her account, to help monitor the activity.

“It was also decided  that Rhonda would make the call and Jeff S. would be there to assist in case things went sideways.  Jeff’s take on the call:

“Rhonda reached out to Marlene this morning while Melinda & I listened in the office. She did an EXCELLENT job speaking with Marlene and conveying WEOKIE’s concerns about her account activity and how we can best help her to  keep her accounts safe. 

“After several minutes and a lot of small talk to  gain Marlene’s trust, Rhonda was able to get her to agree to add her daughter added to the account to help with her finances.  When I say small talk, it was over 50 minutes of conversation!  It was like having a long discssion  with a grandparent. You just let the conversation take its own flow and slowly steer it back to the intended purpose. Rhonda did awesome in this aspect.  Her Nurturing Voice truly shined in this interaction. 

“Rhonda maintained ownership all the way through by following up with Jessica at Main to:  provide the details, including Marlene’s vulnerabilities to fraud; the estimated time when the two members might come in; a commitment to follow up when the meeting is set; a request to be notified to facilitate a warm hand-off; an explanation about the Risk department’s approval of the exceptions with a clear understanding of expectations of the member; and how our role impacts the member’s well being.

“This effort involved six employees and shows the role of teamwork, several of our monitoring tools, and our commitment to making this credit union the best place Marlene has ever banked!  

“Special thanks to Joseph for sharing this member story and how Rhonda, Diane, Jeff S, Melinda, and Victoria worked together to take great care of Marlene.”

The Takeaway

That’s every credit union’s potential secret power:  serving every member, one at a time.

 

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Credit Union Mergers and the Myth of Free Markets

Two conclusions excerpted from a long article by Jared Brock Mega-Landlords Busted for Using AI Algorithms to Price-Fix the Rental Market, on April 10, 2024.

I believe his observations apply to aspects of the cooperative system especially mergers of sound credit unions* now being presented to member-owners.

“First: The free market is a myth.  

“The idea that the world would somehow be better off if there were zero rules protecting the masses from predatory investors is not only deluded and insane, but it’s unfathomably dangerous. A rules-free-market is a black market where the worst actors win.

“Capitalism is all about incentives, and investors have twisted the economy to incentivize extraction and exploitation.

“Second: The modern rules-free-market isn’t what the father of capitalism Adam Smith meant when he said “the free market.”

“He meant a market free from parasites.”

*  See Credit Union Times article of April 15, 2024, Five Illinois Credit Unions Announce Proposed Plans to Merge

 

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Sharing Purpose & Meaning With Effect

Communication transforms when it touches a person’s emotions.  It transcends the moment.  It becomes art.  It helps us see beyond what we knew before.

The most difficult challenge for any organization is telling anyone why they should be interested in joining with you.

Messaging is more than competing for our attention with a product commercial or a clever brand.   Ultimately, it must appeal to something inside.   It should make us care.

He Gets Us is a video campaign that attempts to represent the “greatest love story ever told.”   It suggests the relevance of christen belief in today’s context of religious decline or misuse.

This creative group states its purpose as follows:

We’ve done a lot of homework on our culture. We researched how people feel about each other and what they think about Jesus and Christianity. We’ve connected with thousands of people of various faith traditions and those who claim no religion. We spoke to all kinds of people — different backgrounds, beliefs, and, yes, political affiliations.

And this is what we’ve learned: From politics to sexuality and religion, so many of us feel like our values, beliefs, and identities are under attack by the ideological “others” around us. Many perceive those who differ with them on issues of justice, dignity, and humanity as not just wrong or misguided but also as evil. As enemies. We often see these “others” as close-minded, selfish, hypocritical — and if we’re honest, many of us respond in kind. 

This week I will share several of the group’s “presentations” which look and are sometimes presented as commercials.  But they are much more.  They help us see, to understand more than we did before watching them.

The Credit Union Parallel

What do these “messages” have to do with credit unions?   To be seen as relevant in today’s crowded social media is the same challenge credit unions confront.  There are a number of organizational parallels.

The participation trend lines in most religious denominations are trending down.   Smaller churches are closing.  Larger ones are greying.   Sunday or Saturday “sabbath”  is a time  for  family errands, fun outings and preparation for the week ahead-not participating in a community of shared purpose.  Society’s divisions are mirrored in our religious practice as presented in the group’s purpose:

The more ideologically defensive we become, the more we are willing to sacrifice things like kindness, patience, and the respect and dignity of others for the sake of victory — the righteous ends justifying the dehumanizing means. And it’s tearing us apart. We experience it in politics, in the workplace, in schools, and even in churches. And at the heart of the conflicts is a fundamental disagreement about what it means to be good. 

Credit unions and churches no longer seem central to many persons’ lives. Our basic needs and core values, “to be good,” are fulfilled in other ways and commitments.

The He Gets Us videos try to show the relevance of lessons from generations ago for real people today.

My hope is to inspire rethinking for today’s coop messages.   We need to move beyond the headlines and priorities of our current moment and rediscover the energy that made the industry a movement, an alternative to the status quo and  rediscover who we can aspire to become.

The Immigrants

A hot button topic when people are polled about public issues for political campaigns is the flow of migrates to America.

The one-minute video, Refugee, presents this ongoing human circumstance with a specific context.

(https://hegetsus.com/en/featured-videos/refugee)

What I found equally compelling is the producer’s five-minute  story  telling how this video was assembled.  The making of the Refugee video:

(https://hegetsus.com/en/featured-videos/the-making-of-refugee)

Does this message open one to a different way of seeing this issue?  Does it stay with you after viewing?  Does this human-centered perspective suggest a parallel in your credit union’s role?

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Fraud Alert-A Learning Shared for Everyone

I recently received a copy of a CEO’s description of a fraud/robbery event at the credit union.

The CEO’s summary was sent to all employees for two reasons:

  1. To fully serve and assure any members whose accounts might have been affected by the event.
  2. To convert the incident to a learning experience for  the entire staff.

Here’s why the CEO believes full transparency matters:

“Whenever we take a loss I consider it a tuition payment.  The least we can do is become smarter as a result of making that payment.  We’ve already taken all actions to mitigate/manage the risk. Hopefully others can become smarter as well.” 

In that spirit, here is his summary description of this very well-planned theft used with permission.

ITM Defalcation

Everyone should be up to date on the robbery that occurred in early March . Perpetrators placed skimmers on two of our ITMs in mid-February and removed them just over a week later. They captured the magnetic stripe data of all cards used during that timeframe, re-encoded vanilla gift cards and drained our ITM’s on a  Sunday morning in mid March.

All affected member accounts were immediately made whole, and all cards were blocked and re-issued. We identified all member cards that were compromised and are almost through the process of blocking and re-issuing all of them.

The Secret Service and FBI joined local law enforcement and we are assisting their efforts as much as we can. A bond claim is being filed so we remain uncertain as to what net loss we’ll incur. 

What’s Important

Several configuration and procedural changes were implemented immediately, a few more in the days that followed, with still other changes under consideration. What’s important is that no credit union system was compromised at all, we know exactly how the perpetrators did what they did, and are actively taking steps to mitigate any future loss exposure. The perpetrators did not obtain any personal identifiable information (PII) such as name, address, account number, social security number, driver’s license number, etc.

Rapid action was taken to both replace any funds taken from member accounts and to prevent a repeat of this in the future. Everyone in the financial centers and contact center did a great job interacting with impacting members.

Everyone a Risk Manager

The incident was not a “local” gang. This theft was perpetrated by professional thieves who move quickly from state to state. Collaboration is a credit union advantage especially when a CEO is shares his “learning experiences” with his peers.   Thank you.

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State Regulators and Credit Union Oversight

Who do members turn to when they believe their credit union is not responsive to requests for greater transparency or accountability?  These situations can arise around bylaw interpretation, board oversight, and election conduct.

Following are two examples of members’ interacting with their state regulator when they believe accountability is lacking in credit union conduct.

A Live Hearing-NOW

The first is a hearing of the North Carolina Credit Union Commission at 10:00 AM EDT today.  Several members have sought clarification of the regulator’s approval for bylaw changes, especially those that affect the board election process.  The toll free call in number is 1 (984)-204-1487.  The access code757767261#.

There are thirteen items on the agenda, but the primary one is an update by the state administrator, Kristina Ray, on all areas of her responsibility.   The ability to listen to a live state update is an important opportunity not just for North Carolina charters, but for all credit unions who are interested in the state and federal oversight process.

A Member Complains- the Regulator Responds

A reader sent me a March 18, 2024 article form the Lost Coast Outpost titled:

Coast Central Credit Union Releases Vote Counts From Recent Board Elections Following Complaint to State Regulators

The story is a press release from one of the candidates for Coast Central’s board.  She filed a complaint with the California Department of Financial protection over the credit union’s failure to release vote tallies for the 2024 board elections.

As a result the credit union posted the vote totals for all candidates for the most recen two years with the Chairman’s reply:

“In response to members requests at the annual meeting and in the spirit of enhanced transparency and goodwill, we have taken the additional step of posting the vote totals from the previous year on our website. We hope this action demonstrates our commitment to transparency and our dedication to addressing the concerns of our members.”

Prior requests to the CEO for details of the vote had been turned down.

The complaint was filed by Carrie Peyton-Dahlberg who wrote the press release for the local paper.   The posted results showed she had come in fifth place just 172 votes behind the fourth place elected candidate in the 2024 election:

  • Matt Wakefield: 1,641 votes (73.1%), elected to a 3-year term
  • Terry Anne Meierding: 1,600 votes (71.3%), elected to a 3-year term
  • Ron Rudebock: 1,520 votes (67.7%), elected to a 3-year term
  • Dane Valadao: 1,346 votes (60.0%), elected to a 1-year term for the remainder of a 2023 retiree’s term
  • Carrie Peyton-Dahlberg: 1,174 votes (52.3%), not elected

In her commentary “she urged Coast Central member-owners to use their comment cards to ask for further progress, such as publicly announcing board vacancies, revising board election rules so they don’t hinder election outreach, and changing the board appointment process so that future vacancies can be filled in a way that is more representative of community demographics.”

“Coast Central is moving in a good direction, including releasing these numbers, putting 2024 election reminders in each branch and making sure that its ballots were sent in clearly labeled envelopes. All of these are big improvements over the January 2023 election, and I hope this is starting a new trend.”

 “Bit by bit, if member-owners stay involved, we can encourage Coast Central to move further down this path of listening to the people who own it.” 

Democracy Takes Work

Releasing the actual votes in a member election would seem to be a fundamental requirement, a no-brainer.   The California regulator seems to agree that members are entitled to know the actual votes cast in an election.  That may seem like a small step,  but is still not followed in all credit union merger and board elections-whether for state or federal charters.

This California precedent matters.   Democracy can be a contagious activity.   It is also a participant activity, not a spectator sport.  Carrie Peyton-Dahlberg has done every member-owner a service by raising this issue of election transparency in her credit union.  Hopefully, all regulators will soon see this fundamental accountability for a democratic process the same way.