Dollar’s Merger Claim: Merger Guidance From the Experts

Garrison Keillor of Prairie Home Companion fame, is taking his radio performance on the road around the country in one night stands.

Recently he was in Des Moines and drove across the Iowa farmscape prompting this post:

It was dramatic to drive for hundreds of miles and see no barns or silos, no windmill or grove around a farmhouse, the Grant Wood landscape of rural America, and see what corporate industrial agriculture looks like. It looks like Siberia. A place you send people as punishment.

A culture is slipping away that raised some fine self-reliant relatives of mine like my Aunt Eleanor who could handle a rifle, hitch up horses to a wagon, bake bread, plant a garden, throw a baseball, kill a chicken, sew clothing from a pattern, do basic repairs, and speak her mind in firm declarative sentences. The farm made her a strong woman and I say the world could use more like her.

Well, cultures are mortal, just as we are, and it’s a shame when the worthwhile peter out and the worst prosper, such as the culture of consultancy. Some of the stupidest managers I’ve encountered in my life now hang out their shingles as consultants prepared to advise on strategic planning and team building, who when I knew them were adept at strategic blather and creative imitation. I believe that AI will devastate their ranks and soon we’ll encounter them at drive-up windows, consulting on condiments and large vs. medium shakes.

Mortal Cultures

I found myself reflecting on the idea that cultures are mortal in this obsevation which Keillor titled Looking Around, Not Looking Ahead as I read the following ad via a virtual credit union daily subscriber list:

Dollar Associates has successfully guided over 400 credit union mergers in their 22 years in business. As their tagline says, “We know credit unions backwards and forward. Especially forward.”

Mergers as a so-called growth strategy began in earnest following PenFed’s national McKinsey-like strategy of seeking mergers nation-wide in 2016. The first big success was acquiring Fort Belvoir FCU, a local well-entrenched competitor. The standard gambit was promises of a better future combined with multi-year sinecures for the CEO, plus bonuses for senior management, three-year employee commitments or large separation payments to staff. And of course, nothing for members except a bigger organization. All details wrapped up with non-disclosure agreements including non-disparagement clauses for everyone who cashed out.

The solicitations were overt. And PenFed’s over two dozen mergers from a post office credit union in Wisconsin to a Sperry Associates in New York did not add a single member, loan or asset to the movement.

But it changed the merger game from historical rescues of faltering credit unions in return for expanded FOM’s by regulators, into a wide-open pursuit of non-organic growth strategies. Mergers looked easy, quick and most importantly, the continuing credit union gets paid in-free capital. Just for taking over a business you already know how to run.

These are not market based transactions despite occasional regulatory utterances suggesting the same. They are private deals, done in secret without any member input or notice, documented by signed “definitive agreements” and then sprung upon members. Often accompanied with a PR barrage with videos of the two CEO’s proclaiming a new promised land all executed without any member input or knowledge.

This is the merger world today. Dollar claims to have “guided over 400 credit union mergers” which it would be fair to assume the bulk have taken place in the last decade of the movement’s merger frenzy.

Not Business Combinations But Political Events

These transfers of control of an entire credit union’s operation, net worth, facilities and its legacy franchise value are not business transactions. The only “negotiations” involve how much the selling CEO and senior staff and sometimes board members will gain from the deal. If there are enforceable agreements about future commitments, they are never disclosed or done so with the caveat “if conditions permit.”

While members have a say in all states except Illinois state charters which use proxy voting, the process, transparency and information for informed consent is a charade. Almost all votes are returned by mail ballot with the official Board Notice letter urging member approval—as the event has already received regulatory blessing, subject only to the member vote.

The Need for Facilitators and Go-Betweens

Because these are political events not real business transactions, facilitators are needed. Brokers to quietly solicit candidates, test the waters and make introductions. Accountants, “strategic” consultants and lawyers to draft the private definitive agreements, Most importantly, external professional experts, such as former regulators, to assure boards, for whom this will be a singular and the final event of their tenure.

These volunteer board members need external assurance that they are doing the right thing, because it is irreversible. The so-called professionals will assist getting the necessary regulatory sign-offs-just look at our track record of 400 cases. Trust us, everybody else is doing it as well. You are in good hands.

The facilitators all take their cut of the pie, the vendors who are eliminated get cancellation fees, and staff promised greater professional opportunities. The member-owners receive nothing and lose their accumulated net worth. Most consequential is that the legacy relationships and goodwill which built the credit union as a community resource to be paid forward for future generations is now gone.

“Looking Backwards”

Invoking Dollar’s hindsight, almost all mergers in this decade long period of private deal making have been of credit unions at least three generations old, with long serving records of meaningful community relationships and contributions.

Per Dollar’s claim, the industry now has lost 400 independent charters, their several thousand volunteer board members, and the CEO and other professional community leadership roles. Their local and state political standing is gone.

Most importantly their function as an economic intermediary, taking the savings of local members and reinvesting back into loans for those same owners, no longer exists. For now all these functions and responsibilities are controlled by a new board, often without any connections or knowledge and whose priorities are set following their historical ties and priorities. The merged entity has no standing or recourse as the new brand and culture assert their sway and operational model over the merged field of membership.

“Looking Forward”

The facilitators and apologists for this cooperative self-annihilation claim they are positioning credit unions for the future. Consolidation is inevitable, just let us show you the charts. You need to get ahead of the game before all the “best” options (read payoffs) are gone. Or worse, there might be a new regulatory change that would make it harder to get your cash prize payout. Or worse, you may have to be more transparent in your intent and process.

Let’s be clear. No one knows the future, Change is inevitable. The current culture and political example of getting yours while you can, may indeed continue. The animal spirits of capitalism, the drive for monopoly power may infect credit unions so thoroughly that the industry goes the way of the S&L’s. The big go away. The small and traditional, still around, but humble, toothless in all except a few communities and a charter neither sought by individuals or desired by the public

But change could also come in the form of a backlash–public, political or regulator. New coop regulatory leadership might start asking questions such as, what is the public duty credit unions owe in return for their federal tax exemption? What is the common good member-ownership is supposed to inspire? Are credit unions following their own principles of governance and historical values? Has cooperative leadership been usurped by self-interested individuals oblivious to their inherted legacy, current members’ welfare and their future generations?

The credit union system knows full well what this period of merger manipulation and self-dealing entails. For at the same time credit unions are actively buying whole banks as part of their “external growth” strategies. And in these events, the owners get paid out for their common equity interest and then a premium on top as credit unions can only pay cash, not stock to bank owners.

Certainly, one potential path to the future is the Dollar model. The firm claims 400 success points to prove it can get the job done. Cash out now, forget the past legacy, take the money and let someone else worry about the future of your members.

Will That Be With Large of Small Fries?

I may just be like Garrison Keillor surveying the loss of the family farms to the industrial agriculture industry today. I would prefer a different, more diverse set of credit union options and leadership voices drivng the future. But sometimes the next generation’s responsibility may be to clean up past excesses before creating something that inspires again.

April 30, 2026April 29, 2026

A Cooperative Innovation-Solidarity Link (Part II of II)

Yesterday’s post described the growing disconnect between member-owners’ needs and credit union leadership priorities. Solidarity Link was an innovative way to close this divide.

Today’s post describes CEO McNeil’s analysis for change and how this example might impact the movement.

The Thought Process Driving Cooperative Solutions

From conversations with CEO McNeil, I learned this program resulted from a deep concern that credit unions had departed from their cooperative roots. She believes that the essential system support structure has declined from the early years of chartering and institutional buildout. Today many credit unions believe they achieved their present position on their own and that future visions are similarly theirs alone to determine.

Without a shared appreciation for and the influence of a cooperative system, individual coops with rich legacies of capital and assets, are able to strike out independently. Regardless of the consequences for the welfare of the whole network.

The decline of cooperative system thinking has enormous potential for everyone concerned about the sustainability of a unique credit union financial option. Solidarity Link is an attempt to address this challenge.

CEO McNeil’s Description of How the Initiative Evolved

This program resulted from an analysis of how credit unions had departed from their cooperative roots, United Trades included, and how to reintroduce cooperative design as the touchstone of decisions.

Last year, about 15% of members were laid off. Others saw hours reduced or traveled across the country to stay employed. The response was Solidarity Link: a year-long commitment to use the credit union’s earnings not to maximize financial performance, but to prioritize member well-being. Low-cost loans, small-dollar relief, and targeted resources for members going through hardship.

Financial services are dominated by provider logic. Institutions doing things for consumers. That logic runs deep, even inside credit unions. This isn’t charity or corporate philanthropy. It’s members helping members, with the credit union as the intermediary mechanism.

That framing challenges the assumption that financial success must always be the primary proof point for performance. There were questions. A break-even year wasn’t what people expected. Holding cooperative logic alongside financial logic requires intention.

United Trades is purposively acting as more than a financial institution, accepting that they are also a social institution. Community support takes many forms, and goodwill is never wasted.

But a cooperative’s most authentic expression is not what it gives to its community from a position of strength. It is how it stands with its members inside the conditions they actually face. Responding to real circumstances with real tradeoffs. Accepting that in some years the bottom line looks different because that’s what the moment required. That’s not a departure from sound management. That’s what it means to be a cooperative.

Through April, 119 members have been helped with approximately $77,000 in total support deployed. Many aren’t asking for help yet. They want to know it’s there. Others are deepening their relationship with the credit union not because they need assistance, but because they want to support others.

What we are observing is members who see what their coop can be. It’s their money. They don’t want to exploit each other. Further, that the cooperative self-help value is working the way it was always meant to. ‘People Helping People’ always meant mutual responsibility.

The Takeaway for the Movement

Reinvigorating purpose requires creativity and courage. Daring to invest up to a year’s earnings to reinvent the members’ understanding and to solidify trust is audacious.

But there is an even greater insight driving this effort. We live at a time of uncertainty due to many external factors, events and individual circumstance. Many are fearful about what’s next.

I believe Solidarity Link gives individuals something more precious than financial assistance. It is giving hope. “Hope is lived when it comes alive, when we go outside of ourselves and in joy and pain take part in the lives of others.” (Theologian Jurgen Moltmann}

Hope Is Contagious

The initiative is already creating further interest within United Trades membership and from other union locals learning about the program. The United Trades team and sponsor are excited, engaged and challenged to identify new member-centered value.

Another lesson is the role of the leadership team. It is critical in developing a culture that supports this reinvention of cooperatives as both a social and financial force for good.

I believe this example could capture the imagination and interest of persons who have never joined a credit union. Or even explain what the difference might be. Now they can see it for themselves.

This leadership example reminds us of Albert Schweitzer’s observation: “Example is not the main thing in influencing others. It is the only thing.”

April 29, 2026April 29, 2026

A Cooperative Model Built on Solidarity (Part I of II)

How are credit unions, as cooperatives, different from other financial choices?

The difficulty from a Jim Blaine October 2016 post, Outside the Box Thinking: (link)

In the beginning ( no I was not there!); credit unions were created as cooperatives, which were to be owned and controlled by the members and managed in their best interests.

One member / one vote; a democratically elected Board; a common goal, a common purpose – the common good !

“We’re all in this together…”

But today, some Boards and CEOs have become “more creative” in how they view their relationship with and their responsibilities to those member-owners.

Kind of an “outside the box” sorta view….

See the problem?

“We’re all in this together” no longer applies.

The members have become “outsiders”…. and therein lies our greatest challenge for the future!

Don’t box yourself in,
don’t box your members out!

Has Cooperative Structure Become an Empty Suit?

Jim’s visual distinction is critical. Increasingly credit union CEO’s and boards view the credit union institution as separate from its member-owners. In cooperative design there are not two separate “stakeholders.”

Creating Differentiation Through a Cooperative Lens

What if your credit union’s budget for 2026 projected net earnings every month; but then management and the board agreed to distribute each month’s bottom line directly to benefit the member-owners of their community most in need?

Following is is an example of setting monthly breakeven outcome so that the collective net income can be directed to assist other members through their common link, the credit union

United Trades FCU was founded in 1955 by members of Steamfitters Local 235 which is today the Local 290 of the United Association of Plumbers & Steamfitters (UA Local 290).

UA Local 290 members are the skilled tradespeople behind the region’s largest construction projects. These include industrial facilities, hospitals, universities, and commercial buildings that define the Portland skyline. At a consumer level, they provide the heating, plumbing, and pipefitting systems that keep homes and communities running.

The credit union office is in the UA Local 290 union hall in Tualatin, Oregon. The credit union today has $56.7 million in assets serving over 4,200 members. Many are local but members also travel to other jobs and other locals which do not have credit union access. An additional 2,200 union members maintain vacation fund accounts through the credit union, a benefit administered on behalf of UA Local 290.

The credit union staff of 10 is led by Sarah McNeil, who first joined as a filing clerk in high school. She returned after college as a Loan Officer and worked her way sarving in nearly every staff function.

When the Great Recession hit UA Local 290 hard, with mass layoffs and members unable to pay their bills, the credit union created CU By Design. This CUSO connected small credit unions with needs to others with spare capacity. United Trades was able to generate income through the CUSO to offset losses and still serve members throughout the crisis. Sarah served as CUSO Director for a decade before returning to the credit union in 2018 to lead the Member Services team. On January 1, 2026, she was appointed CEO.

.The union legacy and role is a central factor in how the credit union and members work in tandem. As stated on its website, United Trades FCU is your cooperative, built by members, for members. Every dollar you save, borrow, or invest stays in skilled trades community.

A Cooperative Innovation-Solidarity Link

When hearing about this credit union’s breakeven approach. called Solidarity Link, I reached out to learn more. For it seemed to put members and the credit union together in Blaine’s single box.

The theme of solidarity is at the heart of union membership and the credit union’s member first priority. The professional life of a steamfitter is uncertain. Work on large construction projects ends. Many assignments, while full time, are temporary. When no job requests are available locally the union members will travel to work on construction with other locals around the country.

In addition, there are the uncertainties of labor negotiations. On April 16, Local 290 members voted to authorize a strike in connection with their Master Labor Agreement negotiations. A strike authorization d is a bargaining tool that gives union leadership leverage at the table.

The contract was settled this week. So the signs were not needed.

Solidarity is embraced by the credit union staff. Some of the Local 290 office team, are members of OPEIU, Local 11. No strike, but t-shirts were ready. This was the promise of credit union support had a strike occured. (link)

The Solidarity Initiative in 2026

The program is outline on the web site. (link)The Relief Valve is a series of member options to ease financial pressure when the work cycle tightens or life changes unexpectedly.

The Resevoir are options and tools to help members build strength during good times and prepare for what’s next in the work cycle.

All receive a free $100 travel card when going to an out of area job. Fifteen cards for a total of $1,500 have been issued through April.

Members’ health challenges are are rising across the trades. In step iwith Local 290, the credit union’s taff is trained to recognize mental health warning signs and connect members with right support.

To date there have been 12 loans totally $57,000 to members in financial stress. Overall 119 members have been helped in one of seven financial options.

In April. the board approved a one-time hardship payout to all apprentice members who have been out of work for at lest 30 days (estimated at 80), This payment of $185 will total an estimated $15,000-from current earnings.

Details of the credit union’s performance are in its 2025 Annual Report.

In the CEO’s words: At United Trades FCU, cooperative thinking is what produced Solidarity Link. We are both a social and financial institution — where the Annual Report and meeting materials exist not as formalities, but as a genuine accounting to the people who own it: read more here.

Tomorrow in Part II I will share the new CEO’s logic for using cooperative principles as the standard for credit union performance. .

April 27, 2026April 27, 2026

How to Review a Coop’s Annual Report

in anticipation of the required Annual Meeting, most credit union publish their reports for the prior year. Even NCUA issues a virtual document by Arpil 1 with audits and details of internal processes, albeit little about the state of the industry they were created to support.

How should these documents be evaluated? Are they only the financial stewardship of ;members’ resources similar to any other consumer financial choices? Or should there be an assessment of the cooperative dimension in their role with members?

I have been reviewing the 2025Annual Report and CEO presentation of a virtual Annual Meeting I wnat to attend this week. Here are some issues I would like to see discussed by the leaders:

How did the credit union “show up” for members?

Many institutions will detail initiatives, programs, and new services deployed for members, often with large numbers. Do these efforts read like a series of programs or more like a cooperative working out its obligations to members in real time?

Democratic governance in practice

Were elections contested or director vacancies filled via board nominated candidates by those in perpetual positions of poiwer? Uncontested elections are common in credit unions. The governance implied by the annual meeting requirement can become perfunctory. The credit union is financially sound and service oriented, but is this enough to be a cooperative? Has the legacy ownership structure become merely ceremonial?

Financial philosophy

Virtually all credit unions today show stong capital positions with an industry averge over 11%.

How have he financial metrics enhanced member well being? Do the numbers describe the hardship members face and how the service culture responded?

A cooperative financial overview would also include – here’s what went wrong, here’s what it cost, here’s what we as an institution are accountable for, here’s what the board decided. These issues are as vital to understanding the stewardship of member funds as are the normal financial metric comparisons.

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The cooperative as identity vs. the cooperative as aspiration

Annual reports will often update the founding story while celebrating current contributions and roles in the community. These past and current descriptions are real, but are they more than brand positioning? An acknowledgment that credit unions are supposed to be different in their roles with members?

Is the credit union telling what it is doing to enhance its obligations as a cooperative for members in an uneven and unequal economy?

The Bottom Line

There is no such think as the “perfect” credit union cooperative. One of the advantages of the charter should be the diversity of approaches it empowers.

Cooperative behavior reflects the values of the people currently running the organization. Leadership culture matters enormously.

But the integrity of cooperatives mission cannot depend on the continued presence of mission-aligned executives. That’s not a cooperative structure. That’s a benevolent institution.

The difference matters enormously when leadership turns over, when financial pressure intensifies, or when a crisis demands accountability. Or when external offers arise to transfer control. And these chalenges wil occur. They always do.

Members who have never been treated as owners forget that they ever were. And people who have forgotten they are owners don’t rise to claim what’s theirs. They simply leave, or absorb the loss, or accept what they are told, because nothing in their experience with the institution ever suggested they had the right to do otherwise.

Being a cooperative can result in a myriad of business models. But what should be the common link is member-ownership. Does the Annual Report reflect that fact?

April 23, 2026April 23, 2026

The New Credit Union Model: First Expand Members’ Economic Freedom– Then Become their Oppressor

Two evenings ago I received an email from Scott Rose. This 25 year member of SAFE Credit Union had been prevented from speaking of his opposition to his credit union’s proposed merger with BECU. He had informed the leaders of his intention to speak at the annual meeting. Although the Chair recognized other members, he closed the meeting before allowing Scott to present his views even though aware of his intent.

Righteous Indignation

Scott was infuriated. He disrupted the adjournment ploy, deeply angry and frustrated. He had prepared a thoughtful statement presenting his views on the proposed merger’s impact on the collective future of his 245,000 fellow member-owners.

His pain was real. It is the same deep emotion portrayed in David’s Psalm 52, The Deceitful Leader, opening stanza:

You cunning liar, why publicize your evil need to harm the good? Your slanderous tongue is razor sharp honed to fulfill malicious plans; You love the lie and hate the truth.

Following is the statement Scott wanted to deliver at the SAFE Annual meeting before being silenced by the Chair’s abrupt termination. Judge for yourself the gravity of the issues raised.

Chairman Blumenfeld, Board Members, CEO Nabhani, fellow attendees (Subheads Added)

As SAFE leadership is well aware, I have made clear my opposition to this ill-conceived transaction from Day 1. For those who do not know me, my name is Scott Rose and I have been a SAFE member for nearly 25 years. My sole interest today is to preserve SAFE Credit Union for future generations. I have no hidden agenda and no external financial interests.

A Betrayal of our Community

The Board of Directors’ decision to terminate SAFE Credit Union’s 86 year old charter is a betrayal of our community. So is their plan to hand over all $4.4 billion in SAFE assets to Boeing Employees Credit Union.

The so-called “benefits” of this transaction, as cited earlier by Ms. Nabhani, pale in comparison to the irreparable losses that our community will endure if this deal goes through.

How can an organization seven times the size of SAFE possibly benefit our members and our communities?

Giving Away $400 Million of Member Wealth

For BECU, this deal is a gift. Free money! Who doesn’t like free? $4.4 billion in assets. $3.9 billion in member deposits! $400 million in member equity!

Why would our directors agree to such a lopsided transaction?

I have met with Ms. Nabhani on two separate occasions for a total of nearly five hours. During our discussions it became evident to me that SAFE leadership not only initiated and negotiated this merger in secret, but deliberately excluded any member participation.

Member opinions were not solicited, there were no surveys, and there was never any attempt to engage the membership. The sudden announcement of a merger last November caught every member by surprise.

Board ‘s Corrupt Election

What motivated our Board of Directors to pursue this deal remains a mystery to me. But what is obvious is that this board does not represent and cannot speak for the members.

Only three of the current directors were actual SAFE members when they were nominated and elected to the board. The other nine directors were not SAFE members in good standing, as required by SAFE bylaws, until just prior to their nominations. These actions deliberately circumvented SAFE bylaws with the clear intent to exclude actual SAFE members from participating in SAFE governance.

This fraudulent pattern of election manipulation has been occurring for more than a decade, and the current plan to terminate the SAFE Credit Union charter is a direct consequence of this corruption.

The Truth

The pending consolidation of SAFE and BECU has drawn attention at the national level. BECU is now the fifth largest credit union in the country, and will become the fourth largest after the SAFE takeover. Many experts believe that credit union acquisitions like this will invite further scrutiny by regulators and accelerate recent congressional efforts to eliminate their tax-exempt status. But the truth is, if credit unions like BECU behave like banks, why should they be treated any differently?

Edward Filene was an entrepreneur who ran Filene’s department store from 1891 to 1928, but it was his pioneering effort to establish the credit union movement that is his most enduring achievement. Filene’s underlying philosophy was that a credit union is a member-owned cooperative that is legally and ethically obligated to act in the best interests of its members.

It is evident that SAFE leadership has chosen to disregard their fiduciary obligation to SAFE members by failing to act in their best interests.

BECU CEO’s Banking Resume

On a separate subject, during my discussions with Ms. Nabhani, I noted that Beverly Anderson, current CEO of BECU, gained all of her financial experience as a commercial bank executive at Wells Fargo and American Express. This explains why she lacks an understanding of the cooperative credit union philosophy. Her professed motto of “people helping people” is a just cover for her true goal of expanding BECU’s market dominance by engaging in the same predatory behavior she perfected as a banker.

Local Roots & Home Turf

We have many huge commercial financial institutions and these are readily available to anyone who wants them. But those of us who truly support SAFE Credit Union want a local institution with Sacramento roots. We don’t need the likes of BECU invading our home turf and shutting down our credit union.

Thank you. (Subheads added)

What Happens Now?

This merger is a violation of every principle multiple generations invested to bring greater economic opportunity to the Sacramento community. This transaction converts members into victims of the very institution they built with their eight decades loyalty.

That is the cooperative way of always paying forward their legacy for the benefit of their children’s children

This transaction is a heartless betrayal motivated by greed. The CEO and Board signed a “definitive legal agreement” negotiated in secret with no member input, knowledge or involvement legally obligating this transfer of all SAFE’s resources-past, present and future. Then SAFE’s CEO issued a press release announcing the deal as all but done and providing no transparency of anything about the process.

There was no explanation why transferring all future operations to BECU was in members’ best interest. Or why the half dozen or more local California credit unions who would be more logical partners to expand member value and convenience were not approached. Nor what the CEO and board negotiated for themselves as the agents of this transfer.

This is not the free market at work. It is back office, private self-interested deal making to benefit insiders clothed in rhetorical promises without verifiable substance.

This is not economic freedom. Instead the 245,000 members’ financial relationships, the 800 employees’ jobs and all local investments are being transferred to the control of a leadership group that has no connection to, knowledge of, or experience in the Sacramento community. All $4.4 billion for free including $400 million member equity. The members are not owners, just customers to be bought and sold to whomever the Board chooses.

How Much Longer?

How long must members suffer in this current environment of private profiteering and community plundering of their mutual wealth and future well being?

This predatory destruction will continue as long as people of good will, courage and belief in cooperatives stay silent. For human greed has no limits. If the leaders of the movement don’t speak out, why should the public, regulators, legislators and loyal members care?

It is time for those who believe in democratic, not autocratic leadership of credit unions, to take a stand. Cooperative credit unions are an interdependent system. Seemingly individual actions will affect the future of all others.

It takes only a few to change the course of events, because that is how all revolutions against misuse of authority begin.

Place Scott’s speech in the public record, with the California Legislature, in the public media, in the Congressional Record. It is a stand made by a person of courage, principle and diligence. It should be in every league’s newsletter and given to every state and NCUA examiner by the credit union.

For if one member of conscience and sound judgment has the fortitude and bravery to stand up, surely those who believe in the principles of the cooperative option can follow his example. We call that democracy, a duty we all have if we want to really remain free.

April 21, 2026April 21, 2026

One CEO’s Most Vital Stewardship Attribute

The example of Boeing Employees Credit Union two recent CEO selections proves the adage that most organizations are onlly two transitions from failure. Not just performance shortfalls, but more importantly the loss or founding purpose and the associated values and culture.

See post: When the Song Fades-Leadership Turnover and the Loss of Cooperative Identity. (Link)

Newly installed CEO’s espeically from outside an organization assume they have been chosen to give new direction from their external experiences, often without first understanding the resources they now direct.

The failures are not due to lack of talent, skills or knowledge, but rather a more fundamental gap, an inability to discern the foundation for the success they inherit. That shortcoming is especially vital in democratically designed organizations such as credit unions:

In democratic organization, It turns out, in the end, there’s only one institutional factor that actually matters: Good character. Everything else in a democratically governed system follows and relies on that simple foundation.

To put the current BECU leadership culture in perspective (link), here is a summary of the legacy that Gary Oakland created upon his retirement in 2012. From a press release by CUNA.

Gary Oakland Wins Wegner Award for Lifetime Achievement

National Credit Union Foundation to Present Four Awards on February 24, 2014MADISON, WI (September 4, 2013) — In recognition of his visionary approach to leadership and extraordinary commitment to the credit union movement, the National Credit Union Foundation (NCUF) is pleased to announce Gary Oakland, retired President/CEO of BECU in Seattle, Wash., as a winners of the 2014 Herb Wegner Memorial Award for Lifetime Achievement.

“Gary is a slam dunk as a choice to bestow the Wegner Lifetime Achievement Award,” said John Gregoire, Chair of NCUF Wegner Awards Selection Committee. “Gary’s contributions to the credit union movement were so obvious as everything he touches turns to success for the average American consumer. It’s evident in the growth of BECU, the state supervision system, dual credit union chartering, Biz Kid$, NCUF, and much more. It’s also an honor to see Gary receiving the award rather than giving one.

Tireless Supporter of the Credit Union Movement
Over the course of his career, Oakland has supported the credit union movement in a myriad of ways. Those include serving on the board of the Credit Union National Association and as board chair for the Washington Credit Union League, the National Association of State Credit Union Supervisors (NASCUS), Filene Advisory Council and Board, and the National Credit Union Foundation. In his time as CEO of BECU, he guided the credit union to provide aid for more than a dozen low income credit unions across the country, often single-handedly locating the funds to keep his fellow members-first organizations afloat in times of hardship.

With his leadership, BECU was also able to play key roles in the founding of two low-income designate credit unions: TULIP Credit Union and Express Credit Union. Oakland also oversaw BECU’s creation of Prime Alliance (now Mortgage Cadence), a Credit Union Service Organization that provides mortgage solutions to approximately 600 credit unions.

“Until his recent retirement, [Gary] ably served as an intellectual thought leader on every important issue facing credit unions,” said Mary Martha Fortney, President and CEO of NASCUS. “Of particular note and importance are his dedication and efforts to make supplemental capital a reality for all natural person credit unions. We are seeing the result of Gary’s work on this issue today as supplemental capital in being considered on Capitol Hill.”

High-Impact Commitment to Member Value Oakland is hailed for his unfaltering dedication to improving value for the credit union member. Exemplifying the effect of this commitment, BECU grew from 108,000 members when he took on the position of CEO in 1986 to over 775,000 members at the time of his retirement in 2012.

Oakland was known for accommodating the needs of Boeing employees and providing guidance in responsible financial practices. He also led the credit union to a statewide field of membership to allow more members of the community to benefit from the credit union advantage: member-focused service with better rates and fewer fees.

While this growth trajectory could have changed the organization’s culture, Oakland held BECU true to its founding principles and the credit union philosophy of People Helping People. In 2006, BECU had an opportunity to return a portion of its reserves to its member base. He instated the Member Advantage account, which reversed the interest rate tiers, providing more return for smaller savings accounts and creating incentive to start saving at a time when U.S. savings rates were at or below 0.

“At the local level, Gary advocated for the member at every turn,” said Rae K. Miles, President of Innovative Resources, LLC. “He changed policy to help Boeing employees when they needed it most and led by example in promoted the importance of thrift to the membership. His ‘people helping people’ efforts went well beyond the membership of BECU.”

Biz Kid$ Spearhead

Among Oakland’s most influential accomplishments was the role he played in the launch of the PBS program, Biz Kid$, an award-winning financial education show for youth. Through leading the production initiative, committing $500,000 initially and $1 million over-all, bringing together a group of credit unions that raised $2.6 million per year, and ultimately making the project a possibility, Oakland has become the face associated with the show’s success.

After five seasons, Biz Kid$ has won 2 Emmy Awards and was nominated for 11 more. It claims nationwide recognition and makes a daily difference in the lives of its youth audiences.

“Had it not been for Gary’s effort, leadership, financial and personal commitment, [Biz Kid$] would never have happened,” said Rudy Hanley, President and CEO of SchoolsFirst FCU. “The result has been overwhelming. After five seasons, 13 Emmy nominations and 2 Emmy awards, the program is being delivered to millions of students through a variety of channels and participating organizations. The stature of the credit union brand has been greatly enhanced thanks to his vision and leadership.”

Steadfast Dedication to Employees

Amidst his countless other commitments and initiatives, Oakland still managed to earn the full respect and gratitude of his employees for his supportive and encouraging approach to leadership. He put his employees before himself and made concerted efforts to urge them to embrace personal and career growth opportunities. As a result of Gary’s compassion and attitude, BECU claims one of the lowest employee turnover rates in the industry and five former BECU employees are now CEOs of other credit unions.

“Gary understands that ‘People Helping People’ begins at home,” said Roger Mauldin, BECU Director. “It was always important to Gary that employees have a healthy work-life balance, be paid a fair wage, receive good benefits and know they are appreciated.”

“Man of Steel” Philanthropist

Described as a “Good Samaritan”, Oakland has left a legacy that extends the credit union philosophy well outside the credit union movement. He is known for his generosity and selflessness as well as a tendency to go above and beyond the call of duty.

In 1995, at a member’s suggestion, he led the establishment of the BECU Foundation, a chartered foundation that provides college scholarships to students who excel in academics, leadership and community service. Since its creation, the BECU Foundation has awarded more than $1.5 million to 715 students.

Oakland served on the Board of Seattle’s Neighborhood Children’s Club, helping many children get on the right track to a productive future, and has guided BECU to support a number of non-profit organizations that provide affordable housing, including Habitat for Humanity, Rebuilding Together, Impact Capital and Plymouth Housing.

“Gary has been a trailblazer and a most generous and dedicated philanthropist, both inside and outside of the credit union movement,” said Robert L. Coleman, Director of Northwest Baptist FCU. “Gary Oakland’s career was spent not only ensuring the absolute best for his membership, but also ensuring the success of those surrounding him.”

(emphasis added)

April 17, 2026

Are Volunteers Still the Heart and Soul of the Credit Union Movement?

Many think of April as the month taxes are due. For the untaxed credit union system there is a more relevant event. In America, April is volunteer month. The country honors the millions of citizens who serve their communities and neighbors by sharing their most precious resource—their time.

This volunteer spirit is a vital part of American history and culture. Because the role of government was either nonexistent or limited in the country’s early years, citizens would volunteer to solve common needs. In 1736 Benjamin Franklin organized the first city fire department for Philadelphia, all volunteers. Today 65% of the country’s fire fighters are volunteers. Their collective effort is estimated to be valued at $50 billion if they were paid.

Down through history to the present day in every community, volunteers are at the center of vital social, civic and cultural activities It is an essential part of American culture. People take pride, have a sense of duty and enjoy the camaraderie these efforts offer. Just inventory your own involvements.

Cooperatives and Volunteers

The credit union movement was built by volunteers with governmental oversight often rushing to keep up. In the beginning, volunteers borrowed their “authority” to start the first coop and called it St. Mary’s Bank.

This essential contribution to the coop system’s creation is embodied in the public “definition”—non-profit, member-owned and volunteer-led. Until recently, “volunteer” meant unpaid. which is still the rule for federally chartered credit union board members.

Volunteers’ Founding Role

Every credit union active today gained their charter from the sweat equity of volunteer organizers. Often the first managers and staff were unpaid or seconded to oversee the effort while on the sponsor’s payroll. The physical location of these coop startups was donated either by a sponsor or even in a person’s home. These home-based coops were still common enough that in December 2013 the NCUA under Chairman Matz voted 2:1 to prohibit the practice in December 2013 board meeting. The effort was dropped.

The volunteer ethic is embedded in cooperative values. The seven cooperative principles (now eight) all infer or embrace the ideals of self-help and mutual interdependence. The words of the first principle: Credit unions are voluntary, not-for-profit financial cooperatives . . .

Today volunteers remain a vital component of credit union leadership. One example of this energetic leadership potential is from a recent a linkedIn profile. The student is donating part of her undergraduate career to a startup credit union on campus: Student at UNC Chapel Hill *4X World Record Mountaineer*3X TEDx Speaker*Blogger and Research Consultant*MUN Enthusiast*Cyclist* Runner-HM&FM*Badminton player*Artistic Roller Skater.

Concerns about Self-dealing in Coop Leadership

In the first fifty years of state charters, regulators were also worried about the temptations always present when managing other people’s financial resources.

In the early history of Illinois charters for example, senior managers, officers and directors could not borrow from their own credit unions for concern about self-dealing. The solution was to create chapter credit unions providing leaders an independent coop alternative. While this prohibition was changed, the call report today still monitors the total number and amount of loans outstanding to directors, committee members and senior management.

Volunteers No More?

Unlike the federal system in 22 states the credit unions are permitted to pay directors, some with formal rules, other with authority more open-ended.

For example, several years ago I worked with a state charter where directors met three of four times per month in board and committee meetings. This frequency was because compensation was based on the number of meetings attended. Meetings multiplied.

One rationale for paying directors is the need for qualified volunteers. A long- serving CEO whose directors were paid his entire tenure said the practice had the opposite effect. Less attentive directors became harder to replace as they did not want to give up their extra income.

Paying “Volunteers”

What can be learned from the increasing payments going to directors of state charters? Are these credit unions better performing versus their FCU peers? Are they more innovative? Are directors contributing in ways that unpaid volunteers may not?

While these are important issues, I believe one factor and the historical concern is already obvious and concerning. Specifically, does paying directors distort decisions away from what is in member-owners’ best interest, into what is in leadership’s personal interest or benefit?

A Case Study

There has been much public commentary and analysis of the proposed merger between Sacramento based SAFE and Tukwila, OR headquartered Boeing Employees Credit Unions (BECU). An important difference in the two states’ chartering rules is that state charters can pay their directors in Washington but not in California which follows federal practice.

Boeing Employees Credit Union’s 2024 IRS 990 shows the total compensation for the directors as $1.065 million. Chairperson Somberg received $154,375. The average pay for all nine was $118,352. Each reported working six hours per week for the credit union which equates to a $380 per hour rate.

In addition, the former CEO Benson Porter who retired as BECU President in December 2022 received $931,665 with zero working hours. The CEO Beverly Anderson who succeeded Benson reported working full time for 2024 compensation of $2,708, 880 or 17 times the average employee’s salary of $159,327.

One result from this compensation culture is that BECU has one of the highest operating expense ratios to average assets at 3.33% much higher than every California credit union over $10 billion. SAFE’s operating expense ratio in 2025 was 2.56%.

If SAFE directors were truly seeking a better performing opportunity, here are California based credit unions who are much superior to BECU in financial management and branch availability:

Golden 1 (Sacramento) Assets: $21B OpEx: 2.20% Br: 62

SchoolsFirst (Tustin) Assets: $35B OpEx: 1.81% Br: 69

Patelco (Dublin) Assets: $10B OpEx: 1.84% Br: 37

First Tech (San Jose) Assets: $30B OpEx: 2.83% Br: 56

San Diego County (S. D.) Assets: $10B OpEx: 1.84% Br: 44

Redwood (Santa Rosa) Assets: $10B OpEx: 2.28% Br: 21

Logix (Valencia) Assets: $10B OpEx: 1.84% Br: 37

Star One (Sunnyvale) Assets: $10B OpEx: 0.73% Br: 7

A second outcome of this high expense environment from one analyst’s review: members of BECU, on average, pay more for loans and earn a whole lot less on savings… The cost of operating BECU is @+15% higher than all other CU peers! (link)

Given this clear underperformance by BECU versus its peers and local California options, why did the directors of the $4.4 billion SAFE sign a “definitive merger agreement” to transfer control of all operations and all assets to an out of state credit union with no local connections, experience or proximity?

The definitive agreement has not been disclosed, except to announce that several SAFE directors will be given seats on the BECU board where in 2024 the average compensation was $118,000. SAFE directors, as a California charter, are unpaid.

Who will benefit from this compensation if the merger proceeds has not been disclosed. What is known from safecu.org and clicking on SAFE management, is that only three of the current 12 directors were members prior to being nominated to the board of SAFE. SAFE bylaws clearly state that nominees must be members in good standing. In other words the board nomination and selection process would appear to be closely controlled if not irregular.

Following the money helps understand motivation. The new director compensation available post-merger raises important questions. What are the conflicts of interest as SAFE’s board decided to transfer the entire future of this strong local Sacramento institution and its 245,000 members’ $400 million of equity gifted to BECU for free? Especially as BECU’s performance on most all critical financial measures trails large California credit unions and BECU’s national peers.

The Interests of Paid Volunteers

The founders of coops understood human nature. Payments today to state credit union volunteers follow no common pattern or rules, are limited in or disclosed long after the facs in IRS 990filings, and lack transparency and context. In such circumstances human temptations are set loose.

Today there are very limited, if any, checks and. balances on volunteer compensation. As in the multiple situations where millions of dollars are paid to CEO’s who merge their credit unions, the regulators always seem to look away from these instances of self-enrichment. No one and no set of organizations will ever be perfect. Moreover, as BECU’s results suggest, there is no relation between performance and director pay, especially at a high level.

The ongoing credit union merger free-for-alls are opening up this new form of compensation incentive payments. If SAFE is approved, there will be lots of travel to California by credit unions whose boards are paid—think of Colorado and Washington as initial sources.

But the issue is more fundamental than old-fashioned corruption. The director pay practices in some state charters are leading credit unions to an even more critical cliff edge. Recall the public coop definition of non-profit, member-owned, led by volunteers. It is “volunteers” that govern how the other two characteristics of coops evolve. Can paid volunteers be entrusted with protecting these two defining credit union charter characteristics when their own personal well being is involved? Have credit unions morphed into more for-profit leadership behaviors and rewards? But without market accountability?

What’s at stake in the SAFE-BECU proposed merger and in other similar director paid merger initiated combinations is trust in the cooperative system. For the oldest test of character is: “If you have integrity, nothing else matters. And if you don’t have integrity, nothing else matters.”

April 14, 2026April 14, 2026

A Credit Union Moon Shot

Sometime in the next 12 months the proposed Carolina Students’ Credit Union will be launched.

The crew of 31 students is backed by a support team of faculty and credit union interested folk. As noted in yesterday’s post, new charters are rare with fewer than two a year succeeding after lift off.

The Beginning

What motivated these fulltime students to organize this coop venture?

Shiva Rajbhandari is originally from Boise, Idaho. When he arrived on campus as a freshman, he was unable to deposit his scholarship check remotely, so he searched for a financial option in Chapel Hill. As a climate activist, he wished to avoid large banks with their investments in fossil fuels.

When he couldn’t find a credit union available to UNC students, he decided to start one. Shiva is now a junior studying Public Policy and Sociology. He is also the President and founder of the student chartering team.

Critical Milestones Met to Date

By April of 2025 a board of advisors of credit union professionals and faculty was assembled.
NCUA approved their concept with an FOM of undergraduate and graduate students at UNC in August.
After two rounds of recruitment, the launch crew grew to 31 team members.
From advisors’ counsel, the group is seeking a state charter with the NC Credit Union Division. North Carlina has not issued a new charter in over 30 years.
Team members visited the student-run credit unions at Georgetown University and the University of Pennsylvania. They learned about student loan products, potential vendor partners, and university support. One critical takeaway: in the digital campus environment students value local personal service. Over 60% of the Georgetown student body are credit union members.
The first draft of the charter application is complete and circulating to advisors for review. It includes a 40-page continuity plan.-
Campus financial literacy presentations drew over 80 students further documenting interest.

Why a Credit Union Charter?

Founder Sarah Galdi, from Apex, NC, is a sophomore studying Economics and Mathematics. A life-long credit union member, she took for granted the value they provide communities. Then at college she realized not everyone has access to not-for-profit financial services. She describes three situations of immediate focus:

Wells Fargo has a monopoly on our campus. International students, for example, have a difficult time opening accounts with large banks. We will be able to lower these barriers to entry as has been done at UPenn’s credit union. Two international students joined our team because they were personally drawn to our mission .
Student organizations can be disadvantaged by the lack of financial options. To receive funding from student government, organizations must have a bank account. Wells Fargo, requires a minimum deposit to open organizational accounts, meaning students must advance this deposit requirement before receiving University funding.
As a public university, students come from all income levels. Economic inequality on campus mirrors society at large. Some student’s parents add their name on their children’s credit card to establish a credit history. Lower income and first-generation students often lack this option. They have low or no credit scores. This is a significant economic hurdle for these students. We plan to offer credit builder loans to close this gap.

An International Student’s Story

When I first came to the U.S. at 17, I was completely on my own — new campus, new country, no idea what I was doing.

And one of the first walls I hit was just trying to access the basic financial system.

I couldn’t get a debit card because I was under 18. I couldn’t work because I didn’t have a Social Security Number yet. And without an SSN, I couldn’t apply for a credit card It was an exhausting loop—every door seemed to require a key I didn’t have.

The hardest part, honestly, wasn’t even the bureaucracy. It was doing all of it alone. I was just figuring it out as I went, confused, frustrated, and sometimes just worn down by it.

That experience stuck with me. The system isn’t just complicated — it’s genuinely inaccessible for international students, especially those who arrive young. And that’s something I really want to change.

The witer, Hasvi Mariki, joined the credit union luanch crew.

A Standing Ovation at GAC

Through the support of Carolina credit unions and ACU, three student founders attended last month’s GAC. Here is one participant’s account.

At a Credit Union Roundtable, we told the people at our table our story. They got so excited for us, they grabbed a mic. Then they asked me to stand up and share our mission with the 100–200 people in the room. They gave us a standing ovation. People were inspired that we are encouraging young people to join credit unions and work in the credit union industry. We affirmed that cooperative finance is relevant and worth building for the next generation.

An observer at that session sent me this note: The students are choosing to build. Not because it’s easy. Not because the system makes it straightforward. But because they see a gap between what finance is and what it could be.

Regulator’s Funding Requirement

An outreach committee is seeking the initial $500,000 capital now required to receive a charter. Junior Mohammad Qureshi from Greensboro, NC, is the Chair for this task.

“I came to UNC on the pre-med track. From a young age, I knew I wanted a career centered on helping people, and becoming a physician felt like the natural path. But early in my sophomore year, I realized I wasn’t happy.

I switched to economics, as i was surrounded by business growing up. But something still felt off. Most business careers prioritize profit over people, and that bothered me. I’d lost my sense of purpose; sold out on doing something meaningful.

When seeing the opportunity to join the startup, I didn’t know much about credit unions, but I’d always heard of them. I researched and something clicked: high-impact finance that puts people first.

This has been one of the most transformative experiences of my time at UNC. Bringing a credit union to campus has become my way of leaving something meaningful behind, proof that purpose and business don’t have to be in conflict.”

This is Bigger than One Credit Union

This is a more consequential effort than founding one more credit union. It demonstrates the next generation’s belief that coops can make a difference.

Whenever a brand, a product, a company or even fan loyalty created by the founders is not renewed for following generations, consumers’ interest will atrophy and die.

This de novo effort has multiple projects and specific support needs. You can learn about these by contacting Sarah Galdi, Scgaldi@unc.edu or President Shiva Rajbhandari, Shiva.rajbhandari@unc.edu.

The credit union’s website is here. Individuals can make tax exempt donations through CU De Novo, linked here.

Support of this startup will have an impact on campus for students, on the NC credit union system and the public’s perception of coop’s relevance. But most importantly you will feel good knowing you made a difference.

If you have any hesitation, I recommend you talk with one of the founders. That is what convinced me this is a special group who will complete their mission.

March 26, 2026March 26, 2026

Democracy Takes Work-At Every Level of Society

As I went downtown during rush hour yesterday, a gray haired, older lady appoached me with a small handout at the escalator. It was a snall flyer for where to stand locally in the No Kings rally this Saturday around the country at over 3,000 locations.

But democratic duties are not limited to national and local politics. Virtually all volunteer, non-profit and community organizations have some form of member oversight. This can be the elections of representatives or to changes in bylaws and/or structure.

If one owns any publicly traded stocks, it is likely there will be reminders of the annual meeting with proxy solicitation calls. In this case the voting is based on share holdings, but voting none the less.

Credit unions can learn from these other exercises in organizational governance. Especially what can happen when democracy is usurped by those in control at the moment.

The Tools of Democratic Oversight

Jim Blaine the former CEO, observed that an organized minority in authority will always defeat a disorganized majority. And democratic majorities are, by definition, rarely in unanimous agreement. Not everyone in Virginia thought the idea of Give Me Liberty or Give Me Death, was a great choice.

One of the most important monitors of our various democratic processes is the press. This can be public press and broadcasts, industry publications, bloggers and those using social media to raise concerns, and even individual actors writin opinions for their local outlets. Here is how the press is covering a story of usurpation of democractic control in a major local powerful institution.

Democratic Control Removed-A Press Investigation

Recently the Houstan Chronical completed a five-part investigative series of a takeover of one of the largest Baptist Churches in the city by its pastor. (link)

While the details are behind a paywall, here is a summary of events.

Houston’s Second Baptist Church, with about 90,000 members, is a church at legal war with itself, since a group of influential congregants calling themselves the Jeremiah Counsel sued church leadership in 2025.

They’re challenging revised bylaws established in 2023 that deny lay members a vote in important church decisions, including the selection of senior pastor Ben Young, son of the church’s popular long-time leader, Ed Young.

The bylaw change was in a single sentence that seemingly slipped by most people and put the church at odds with its own faith: “Members are not entitled to vote in person, by proxy or otherwise.”

With those 12 words, the congregation at the now 98-year-old church lost more than its vote. It parted ways with a core tenet of Baptist doctrine: democratic rule.

The revolt started when a group of members realized they had given away their authority to vote on church business after an election in which hardly any congregants participated.

It didn’t take long for several influential church members — who are now suing to reverse changes made in that crucial vote — to realize where the new bylaws came from. They bear a striking resemblance to the bylaws of Fellowship Church in Grapevine.

Fellowship Church in Dallas, is another megachurch with family ties to Second Baptist. Second Baptist quietly copied Fellowship Church’s bylaws — and silenced its members.

One article in the series is headlined: How Second Baptist Church sacrificed its Democratic Principles: ‘You can’t fire the king’

Democracy vs. No Kings

The human tendency to rule by authority versus the more complicated exercise of democratic leadership is present in all organizations. But especially in credit unions. Because money amd, its use, is combined with power.

The result is that boards and senior management strive to limit any meaningful say in their oversightand leadership roles. Nominations for board seats are controlled by existing directors and limited to the exact number of vacancies. No voting needed, just ask members to approve by acclamation.

But when there is the prospect of members rising up, the next step is to copy the practice of Second Baptist. Specifically change the bylaws to make it impossible for members to self-nominate or to challenge the board’s control of the election process.

In the traditional FCU bylaws, members can submit a petition with 500 names for board nomination or to call special member meetings. The top three credit unions by assets,Navy FCU, SECU (NC) amd PenFed all took steps to make this member option impossible. Instead of a fixed number, the bylaws were changed to require a percentage of total members to sign the petition.

PenFed’s change came after a self-nominated candidate qualified for election. SECU’s board changed its bylaws after members challenged the closed board process in an open election. The board changed the bylaws and election procedures to make the process very difficult for member-nominated candidates to qualify.

All three bylaw changes to the long standing democratic process were approved by the reglators with members having no say or even knowledge.

Democratic oversight takes integrity, character and continuous vigilance. It requires a free press in all forms to cover uncomfortable truths and lapses in duty by those in power. Power in terms of community and local influence and those charged with responsibility for public oversight.

Firing a Credit Union Leader

One of the landmark events in credit union land was when CUNA fired its presient. The story in brief:

Herb Wegner was an avid pilot and owned his own plane. He had an agreement with (CUNA) to be reimbursed the equivalent of a first-class ticket whenever he flew his own plane for work. However, disputes over these expenses became a major point of friction with the CUNA Treasurer, Fred Krause.

At a board meeting in 1979, Krause reportedly announced he was “tired of fighting Herb about airplane expenses” and unexpectedly moved to fire him on the spot. The motion passed, stunning most of those in attendance.

While there were other factors at play, today the highest honor credit unions bestow on their leaders is called the Herb Wegner award. An irony which shows the cooperative system’s ambivalence in managing its own shortcomings.

What Everyone Must Do.

Democracy takes practice which is the root of the word participation. Here is my sign for Saturday.

March 17, 2026March 17, 2026

Every Member Has a Story

Two stories of a credit union going the extra mile to help members with card problems. From a CEO’s monthly staff briefing, used with permission.

The stories are long and show the team efforts needed to resolve difficult circumstances in the member’s best interest.

A Blocked Card and a Member In Transit

Our member called in on Thursday, Jan 22, 2026, because his debit card wasn’t working. When our CC representative, Kristen, took a look at his debit card, it was discovered that it was restricted due to suspicious activity, and she confirmed that the transactions were fraudulent.

After explaining that the card would need to be blocked, he became very frantic and upset as he was working out of town. His company was sending him home due to the incoming weather. However, he was going to be stranded in South Texas without a debit card, no gas, and no access to funds. The closest shared branch was 75 miles from where he was.

Kristen went to Jami, her supervisor, to see if there was anything that could be done to help this member. Jami reached out to RISK and asked if an exception could be made for us to un-restrict the member’s debit card long enough so that he could go to an ATM and withdraw funds, and then immediately block it when he was done, so that the credit union could maintain operating control.

When Kristen got back on the phone and told the member the good news, he was elated, and Hope took the place of despair. Kristen stayed on the phone with the member until he got to an ATM. She then coached him on how to get as many funds as he could from the ATM (the limit for that specific ATM was $200 per transaction). The member had to do multiple transaction withdrawals wich Kristen walked him through. After the member pulled what funds he could out, Kristen immediately blocked the card.

The entire team did the right thing by this member and found a way to enact our Principles of Operating Control while realizing that Every Person Has a Story. The credit union was able to deliver a happy ending by enabling him to get gas, necessities, and a hotel room so that he could make it home safely in time to avoid the bad weather.

An Overdrawn Credit Card in Default

A member and his mother came to the local Member Relationship Center after a frustrating experience related to a credit card that had been charged off. The member believed he had only been an authorized user on the account, added by his father when he was 18, to help build credit. Sadly, his father later passed away after struggling with alcoholism, leaving an $8,000+ balance that began reporting negatively on the member’s credit. It was later confirmed that the member had signed as a co-applicant, making the debt legally his responsibility.

Prior attempts to resolve the issue had been unsuccessful, leaving the member and his mother extremely upset. Joley from the Contact Center supported them during an emotional call and proactively coordinated with member service reps Allison and Bella to ensure the branch team was prepared. Bella also followed up based on a prior review, providing the card provider the deceased accounts contact information and continuing to advocate for support.

When mother and son arrived the next day, emotions were high. During a lengthy call with the card provider, we verified account details and requested a higher up review. While the conversation was tense at times, the focus remained on de-escalation, empathy, and finding a solution. After nearly an hour and multiple conversations, the credit card proviider’s recovery agent agreed to accept a one-time $1,000 settlement on the balance.

The mother who is on Social Security with limited savings, was prepared to pay the settlement that day. By the end of the meeting, both she and her son were visibly emotional—this time from relief. They shared that they had felt stuck for a long time and were deeply grateful for the advocacy, time, and teamwork that helped them reach a manageable resolution.

A Comment

This is the credit union difference in practice, not a PR slogan. These members were treated like owners whose special circumstances were recognized and resolved as a standard operating procedure (SOP).

Tomorrow I will show how this individual approach, intrinsic to cooperative design and purpose, carried over into the 1984 restructuring of credit union’s unique insurance saety net, the NCUSIF.