Category: Uncategorized

It is increasingly hard to call an organization which serves retail customers without first navigating a series of AI driven questions about your needs.

Sometimes these automated phone trees work well; but many times people call because of a specific  need that does not easily fall in one of the menu of options.

Many credit unions believe personal service is their ultimate advantage.  Several credit unions share stories they send staff to illustrate the organization’s  culture they believe to be their competitive difference.  Here is an example from June.

The CEO: A long-time member took the time to call me to rave about Monica and tell me she doesn’t even rate shop anymore. She then forwarded me an email that she sent to Monica.

The member’s email: I want to take a moment to thank you—from the bottom of my heart—for being the absolute best mortgage advisor in the world. Working with you is not just a transaction; it’s a relationship built on trust, care, and genuine connection.

You are incredibly thorough, patient, and kind. Every time I’ve needed something, you’ve been right there—quick, clear, and supportive. You always know just what to say and when to say it, and that gift has brought so much peace to what can often be a stressful process. I trust you completely when it comes to my loans. I don’t even consider going to other lenders—I come straight to you.

You’ve earned that trust with your humility, consistency, and deep care for not just the business side of things, but for me and my family as people. You remember the details, the milestones, and the little things that matter. That personal touch sets you apart in every way. As my life changes, you’ve remained a constant. You are the go-to, hands down. No one else matches your competence, your capability, or the heart you put into your work.

It’s clear you love what you do, and that love shines through in every interaction. I am incredibly thankful, honored, and truly Blessed by Jesus to work with you. Your presence has been a gift.

This credit union’s performance exceeds their peers consistently on all financial and net promoter score indicators.  While AI phone trees and “live” chat may be a solution for some activities, it will not be the means to build relationships with members.

Yesterday I received the picture below from  a new Boston resident walking around town exploring the Commons.  The plaque was placed in 1959.

It reads in part, Edward Filene (1860-1937): author, scholar, outstanding citizen of Boston and public benefactor. Acknowledged as the founder of the credit union movement in the United States.

Great leaders require two defining characteristics: vision and optimism.  Together they produce hope.

Two Expressions of Hope

From Emily Dickenson:

“Hope is the thing with feathers –

That perches in the soul –

And sings the tune without words –

And never stops – at all …

Carl Sandburg in the midst of the Great Depression wrote of hope in the commonplace scenes of life-1936:

Hope Is a Tattered Flag

Hope is a tattered flag and a dream of time.

Hope is a heartspun word, the rainbow, the shadblow in white

The evening star inviolable over the coal mines,

The shimmer of northern lights across a bitter winter night,

The blue hills beyond the smoke of the steel works,

The birds who go on singing to their mates in peace, war, peace,

The ten-cent crocus bulb blooming in a used-car salesroom,

The horseshoe over the door, the luckpiece in the pocket,

The kiss and the comforting laugh and resolve—

Hope is an echo, hope ties itself yonder, yonder.

The spring grass showing itself where least expected,

The rolling fluff of white clouds on a changeable sky. 

Have a hope-filled weeken

Thursday’s NCUA board meeting is unique. Only one of the three person board will be there.

Normally these public events are fully scripted in advance.  All senior advisors have briefed each other on their members’ positions.  The staff has been given the questions directors will ask.  All actions are known in advance.  Spontaneous dialogue, let alone direct back and forth is highly unusual.

The first open board with a single member will showcase Hauptman’s approach and how a single board member questions staff.  Will it be an open discussion or just a pretend briefing with all the dialogue preset?  Will Hauptman  be able to challenge a staff response, as he has sometimes done in the past?

The Two Agenda Items

One is the quarterly NCUSIF update.  It will be interesting to learn if Hauptman brings a more transparent approach to this financial briefing.  Many issues are long standing such as:

Why does the fund’s financial statement presentation not conform with private GAP (the practice until 2010) versus governmental accounting terminology?  In all of NCUA’s three other funds, financial performance follows private GAP accounting presentation.

Will there be an informed discussion about the Funds interest rate risk (IRR) policy?  The NCUSIF below market performance (2.59% YTD yield)  and investment practice have lead to a portfolio value with a net market loss since December 2022.

For two years the normal operating level (NOL) cap has been set above the long term 1.30% with no factual analysis to support this higher level.  This cap sets the level above which credit unions are sent a dividend as part of their open-ended funding commitment in the 1% deposit.  Will the cap be reset to its historical level?

The fund has a $ 5.4 million provision operating expense in March.  Will the staff show the details of how this amount was determined?  The loss reserve is now $242 million or 1.36% on insured shares.  There have been virtually no insurance losses in the past five years.  Why is this reserve still growing relative to total insured shares? How will the closure of Unilever FCU impact the fund?

How will the savings in total NCUA operating expenses due to staff and other spending cuts, reduce the NCUSIF’s expenses for the remainder of the year?

Finally, when will the NCUSIF’s equity and 1% deposit liability to insured shares ratio be calculated using the latest data from a single accounting period. This management  calculation would be a more accurate presentation of the Fund’s true financial position.  At the moment this ratio is calculated using data from two different time periods six months apart.

The State of the Industry

A traditional part of the quarterly NCUSIF briefing has been an appendix which presents the distribution and trends in CAMELS exam ratings by asset size and numbers.

The problem with this staff presentation is that the ratings are an average at least six months old. This assumes an annual exam cycle.  The staff does not present the current industry financial trends as of the same date as the NCUSIF financials.  However the industry’s  numbers are available.

Last week Callahan & Associates presented credit union’s first quarter 2025 financial performance. Here are some excerpts from the full presentation.

Note that all of the trends are positive begining with the key blance sheet totals compared to 2024.

Will these positive trends be reported as the context for the NCUSIF financials at the same date?

Agenda Item Two: Staff Reorganization

The issue will be how were the reductions  achieved?  What reorganizations are necessary?  What are the operational priorities guiding these changes?

Will the focus be on areas where activity seems to be redundant or non-existent?  Why two legal staffs?  Can the CLF, which has had no activity for over a decade, be combined with other supervisory roles?  Why is a separate AME office necessary when for almost its entire life this function was part of the regional office staff?  Are contracts being used to replace staff functions thus giving the appearance of lower headcount but spending levels remain the same?

Finally, who is in charge?   The board’s job by statute is to manage the agency.  If a person has a question about any area of activity, who are the persons with line responsibility?  Can an org chart be published?

I would listen for any discussion about the board’s functions, scope and duties  during this period of leadership uncertainty.  What is the legal position of the General Counsel for a solo  Board’s authority?

So tune in Thursday via zoom at 10:00 AM.  Or better yet, go in person.

Each month I receive 3 to 5 CEO staff briefings.  While many share similar financial performance versus plan updates and emplyee recognitions, I find their specific topics \paraticularly interesting.  These often convey the special role of credit unions.  Here are  edited selections from recent, multiple CEO communications.

Joining Veterans Benefits Banking

We became affiliated with the Veterans Benefits Banking Program (VBBP). The VBBP is a partnership between the Veterans Administration (VA) and banks and credit unions which understand the financial needs of the Veteran community and who deliver excellent customer service.

Based on all our credit union  does for and with the local VA Medical Center, it was clear that the we more than qualifies for the designation. VBBP connects VA benefit recipients with financial institutions who offer low or no cost accounts, provide financial education, and assist VA benefit recipients with various financial matters

AI Powered Text & Chat

We introduced an AI associate within our Podium text and chat platform on April 3 that answers general questions of members. The platform’s conversational AI employee, named Jerry, interacted with 240 members in its first week.

Contact center associates are monitoring the interactions, have encountered no AI hallucinations and report that Jerry is appropriately responsive to a member’s tone and is learning at a rapid pace.

Regulatory Exam Update

Examiners from both the state’s Division of Financial Institutions and the National Credit Union Administration (NCUA) were both on-site and remote the past four weeks to perform a safety and soundness exam. As a state-chartered credit union, DFI is our prudential regulator while NCUA is our deposit insurer. Both agencies work closely together in order to share work product and reduce examination costs.

We expect to receive only one examination report jointly written by both agencies, likely to be in the next month or two. We also expect to be given our usual clean bill of health with only some minor findings in the exam report. Thank you everyone who dealt with the various questions of the examiners.

(my reaction: a month or two?)

Member Comments

Monica helped me get a new account set up, information I needed to be able to transfer money from my old bank account, and direct deposit information together for my employer. She was great to work with. I’m really excited to be changing to this credit union from my bank! Thank you for a great first experience!

I appreciate the small grace period as this economy is extremely difficult to just get by in. I got a great interest rate and if it weren’t for y’all, I would not have been able to graduate from NP school. 

On Balance Sheet Growth

We had a pretty solid first quarter of the year.  Our net income was slightly better than last month. We have had really strong deposit growth-growing 13% on an annualized basis.  We have had loan growth but certainly not at that pace!

DELINQUENCY AND CHARGE-OFFS

After presenting delinquency trends in each loan segment, the CEO continued:

Considering all the economic uncertainty we remain diligent and concerned about our members’ ability to make loan payments and are offering individual solutions when appropriate.  Our delinquency and chargep-offs are the reason that we have tightened our underwriting criteria over the past year.  This means we are saying “Yes” less often to members.

Member Growth  Slowdown

You may have noticed that our membership growth is slowing-though still positive. The slowdown started in October of last year and has continued.  . . we are bringing in about 250 fewer new members per month from indirect lending.

If we look just at core members, those who choose to join the credit union, we are bringing in about 350 fewer new members per month than last year.

We have a team analyzing the trends and trying to better understand where the changes are occurring. . . the question we should be thinking about is what is causing fewer people to make the decision to join. . .I would love to hear what ideas or thoughts others have.

 

 

Yesterday I wrote about the need for disruptive leaders to regain the unique advantage of cooperative memer-owner design.

Ancin Cooley is a former OCC bank examiner and long-time credit union consultant.  He has a working knowledge of almost all areas of credit union operations and regulatory issues.

He is creating a new collaborative initiative for credit union professionals who want to focus their leadersip on enhancing the member-owner elationship.

Ancin’s initiative is outlined below. It is a combination of teaching and mentoring for only $8 per month.  He describes several unusual design featues in the resources he has assembled.

His contact information for his newsletter is at the end of this outlne.

From Ancin Cooley:

CU Communities: What We’re Building and Why It Matters

In July 2025, we’re launching CUCommunities.org — a subscription-based online learning and mentoring platform created for credit union professionals and volunteers. But more than a platform, this is a response to a real need in our movement.

My own background is in regulatory examination, governance, enterprise risk management, internal audit, and strategic planning. And after working with hundreds of credit unions across the country, I kept seeing the same gap, not in the talent, but in  support.

Credit union professionals — especially those at smaller institutions — are often under-resourced and over-expected. They’re tasked with solving complex, high-stakes challenges with limited tools and limited time. And too often, their development is tied to someone else’s permission, budget, or bias.

People ask:

“Where can I privately and on my own time get step-by-step guidance?”

“Where can I get mentorship?”

“Where can I ask questions without being judged for what I don’t know?”

“Where can I learn how to actually execute my strategy?”

CU Communities is designed to answer all of that — with practical, consistent, and role-specific learning delivered at a price an individual can afford and an institution can support.

What CU Communities Offers

This isn’t just a content library. It’s a community of practice.

Subscribers will have access to:

• Tools, policies, job aids, and micro-videos
• Guided learning experiences that empower, not overwhelm
• Conversations with people who’ve actually done the work — not just studied it

What makes us different is how deep we’re willing to go. Without the overhead of a traditional association or vendor model, we can focus on the real work: BSA risk assessments, ALM modeling, look-to-book ratios, member business lending concentration thresholds — the things professionals actually need to understand.

Districts and Neighborhoods

We’re organizing CU Communities into two layers:

• Districts — Topical learning areas like Credit, ALM, Compliance, Lending, and Collections. Every member gets access.
• Neighborhoods — Curated forums and micro-communities organized by role and region, like “Louisiana CEOs” or “Small CU Lending Teams.”

Over time, more districts and neighborhoods will be added based on demand and input from the community.

A Pricing Model That Empowers

The first phase of our rollout gives individual subscribers access to every district for just $8/month. That price point is personal. It reflects a core belief:

Graduate-level insight shouldn’t be gatekept.

This subscription allows anyone — even those further down the org chart — to access the kind of content, coaching, and perspective usually reserved for senior staff or conference attendees.

It’s for the teller who wants to understand ALM.

For the collector who dreams of becoming a CLO.

For the new lending manager who needs to build confidence before speaking in front of the board.

If they’re willing to invest in themselves — even quietly — they can grow.

No permission slip required. No budget approval needed.

Just initiative, access, and a community that sees their potential.

Additional subscription tiers ($15/month) will unlock neighborhood-level access, including peer mentoring and facilitated conversations.

For credit unions, teams of up to 10 employees can join for $80/month, with additional seats available upon request.

More Value. Less Cost.

We’ve set a bold three-year strategic goal:

To create and distribute more courses, policies, tools, and mentorship hours than all the leagues combined — at a fraction of the cost.

Why? Because education in our space should be:

• Practical
• Affordable
• Always available

Whether you’re a volunteer trying to understand ALM or a VP preparing for the CEO seat, we want you to feel something rare:

That you’re finally getting more for less.

Built by Practitioners — For Practitioners

CUCommunities.com isn’t driven by theorists, consultants, or vendors. It’s built by people who’ve lived the work — and who want to pass that wisdom forward.

That includes:

• Retired CEOs, CLOs, and CFOs
• Current practitioners solving today’s problems
• Underrated experts within our industry — the operations lead, the branch supervisor, the marketing director quietly driving 8% organic membership growth

And here’s where we’re doing something revolutionary:

Everyone who contributes content — from workshop instructors to mini-course creators — retains ownership and receives revenue in perpetuity.

Most webinar houses pay $500 and own your content forever.

Not here.

We’re building a cooperative economy inside a cooperative industry.

Guardrails That Protect the Mission

To remain independent and principled, CU Communities has codified a structural safeguard:

No single revenue source — sponsor, vendor, or institution — will exceed 25% of total funding.

This isn’t just financial policy.

It’s governance by design.

It’s how we protect our integrity — and yours.

The Bottom Line

CU Communities is for people who want to get better. Who want to lead better. Who want to build better.

This isn’t a one-time launch. It’s a growing, breathing, member-driven network.

And it’s here for you.

Join the newsletter here: CUcommunities.org

Questions or media inquiries: acooley@syncuc.com

 

The phrase “dark night of the soul” portrays  personal, and sometimes communal, feelings of no way out of present  trials.  The loss of hopefulness.

Frost’s meditation reminds us that  these dark valleys  reflect neither wrong nor right. They are part of our humanity.

Acquainted with the Night

by Robert Frost

I have been one acquainted with the night.
I have walked out in rain – and back in rain.
I have outwalked the furthest city light.
I have looked down the saddest city lane.
I have passed by the watchman on his beat
And dropped my eyes, unwilling to explain.

I have stood still and stopped the sound of feet
When far away an interrupted cry
Came over houses from another street,

But not to call me back or say good-bye;
And further still at an unearthly height,
One luminary clock against the sky

Proclaimed the time was neither wrong nor right.
I have been one acquainted with the night.

This is the season for annual meetings in credit unions and stockholder owned companies of all sizes.

Make Your Voice Heard

Because I inest In Vanguard  mutual funds I sometimes receive the above email subject line followed by this message;

Be the vote that counts

Dear Vanguard Investor, As an investor in these securities, you have the right to vote on important matters. This is your opportunity to make a direct impact on your investments. Your vote counts!

A Credit Union Example

For over three decades I have had a CD in a credit union of approximately $20,000.   It is paying  .25% interest.

The credit union recently sent all members this email announcing their annual meeting for member-owners:

Dear Member First Name,

We are conducting the 2025 Annual Meeting by Electronic Transmission as provided in Section 411 of the Amended and Restated Bylaws . . . effective April 28, 2017 (the “Bylaws”). The Annual Meeting will be hosted by video conference on April 25, 2025, at 5pm PT.

Registration is required to attend

We welcome you to join us and take this opportunity to submit questions in advance. To register, please send an email to X no later than 11:59pm PT on Monday, April 21, 2025. If you would like to submit a question, please do so in advance via email (to the same address above). We will answer as many questions as possible during the virtual meeting.

How to receive Annual Meeting materials

The Annual Meeting materials will be available for download at . . . on April 14, 2025. The materials will include the following:

Notice of Annual Meeting Meeting Agenda Minutes of 2024 Annual Meeting 2024 State of the Credit Union 2024 Annual Report

Matters requiring a vote

Please note that there is no new business to discuss. The only matter requiring a vote of the members in attendance is approval of the 2024 Annual Meeting minutes.

Credit Union 2025 list of candidates nominated

Board of Directors – Four (4) positions to be filled by acclamation of the Board of Directors as provided in the Bylaws:

Incumbant # 1 3-year term Incumbant # 2 3-year term Inxumbant #3 3-year term Incumbant #4 and CEO 3-year term

Section 501(D) of the Credit Union Bylaws provides “If no more nominations for vacant positions are received than the number of vacant positions, the credit union may, without further action, declare that those nominated and qualified to be elected are elected.” Four candidates have been nominated to fill the four open Director seats. Therefore, the Directors nominated will be approved by acclamation of the Board of Directors as provided by the Bylaws. As we move into 2025 with some economic volatility on the horizon, we remain focused on our mission to build our members’ financial health and wellbeing and to work diligently to ensure our members have the strong service and support they’re accustomed to. In 2024, we successfully rebuilt after a security incident, and we experienced what it was like to come together with strength and resilience to stay focused on our members. That focus is what drives us to provide ongoing value to members in the forms of fewer fees and better rates, plus all our financial wellbeing benefits and services – from personalized advice and a dedicated anti-fraud team to webinars and partner discounts. We continue to have the financial strength to make a difference for our members today and for the generations to come. Sincerely, CEO signature and the following personal note: Thank you for being a valued member since March 2007.

Upon sending in my interest in attending, I received this response:

Thank you for your interest in the 2025 Annual Meeting. We have received your request for registration and will be sending out a confirmation with the meeting access information prior to the meeting on April 25, 2025.

Democracy In Practice ?

The required annual meeting and election of board members is the single most important element of member-owner governance.   In many credit unions today converting the meeting into an administrative formality with no actual member involvement is par for the course.

Let’s be clear.  This is not democracy in any sense of the word.  Instead of seeking member participation and celebrating the cooperative model, it is an exercise in perpetuating power, or  the using current term oligarchy.

While I assume these volunteers are experienced and committed, they are missing the most critical element of leadership:  acknowledging their accountability to the member-owners.   That is the foundation of trust that undergirds every financial institution.

According to NCUA data, between 95% to 97% of all credit unions are rated camel codes 1 and 2.  This is not about financial oversight, but rather responding to the needs of members and communities with presence and engagement.

The future of credit unions may depend on members seeing their involvement as something more than a customer. To achieve that, they must be respected as owners.

Right now our votes do not count because there is no voting.  Credit unions lacking this member participation are missing their most important advantage versus all other options.

 

The annual Credit Union sponsored  Cherry Blossom 10 mile run on Sunday April 6  in DC had a last minute adjustment.

Runners Learning about a Course Change

On the day before the race, Saturday, April 5, President Trump’s 10% tariff on all imports to the US took effect.  The tariff covers all products, services and intellectual property from any country, regardless of that country’s tariffs on the US exports to them.

Race organizers were told by the US International Trade Commission that the mile, as a concept for measuring distance, was an English “intellectual property” import.

Therefore the race must be expanded to 11 miles, or 10% further, or face a last minute cancellation for the over 20,000 registered runners.  The race committee agreed to the request and moved the finish line by an additional mile.

Credit Union Runners React

While some participants felt that politics should not be a part of this effort to support the  Children’s Miracle Nework, most were stoic about the additional distance added right as the runners were assembling.

One runner, Alix,  who has competed for many years, commented that the added length was no worry.  That’s “because credit unions are always willing to go the extra mile for their members,” she said.

 

During this week’s GAC meetings the three NCUA board members discussed their view on potential Trump administration’s efforts to limit the NCUA’s independent agency status.

Board member Otsuka’s full speech is  online.  The two other board members’ comments are from interviews reported in the press.

All three took the same Oath of office to  “well and faithfully discharge the duties of the office” which each now holds.

Here are their remarks on their obligation to the agency’s Independence.

Board Member Otsuka (Excerpts)

Congress has entrusted the NCUA with the responsibility to protect credit union members and the credit union system, and our ability to do so depends on a strong, independent agency, . .

Our independence is critical to maintaining confidence and stability in the credit union system. . .

NCUA understands the unique characteristics of credit unions and their members. Our independence from politics and distinction from other financial regulators allows us to focus on what matters to the credit union system.

. .  .credit unions must continue to show the American people what the credit union difference means and live up to the mantra of “people helping people.” . . Too much is at stake to be seen as no different than a bank or a tech company or any other financial institution. The credit union difference is the ultimate competitive advantage.

Board Member Harper’s Comment

Harper told the DCUC’s Defense Matters meeting that the “NCUA board is going through some reconsiderations of how we are going to change the agency and what we are going to do. That’s what a new administration is and does. I’m confident we will get through this as a different NCUA but a strong NCUA.”  

Chairman Kyle Hauptman’s Position

From CUSO Magazine coverage: “Hauptman sat down with Nussle to discuss not only the regulatory concerns of credit unions and his priorities as Board Chairman, but also the uncertain future of the NCUA itself, as executive orders threaten its ability to operate as an independent regulator and as speculation of consolidation calls the fate of the organization into question.

“On the topic of the NCUA’s future, Hauptman declined to speculate or advocate for one outcome or another, noting that while he does not shy away from controversial topics, he keeps himself from getting into debates when he has no authority over the outcome. The fate of the NCUA, he argues, is outside his control and lies in the hands of Congress and the White House:

“Congress created the NCUA in 1970, and there were 27,000 credit unions operating before then…my only view on it is that it is important for people to understand that credit unions are different. So whoever in the future is going to be regulating needs to be aware of this.”

From another news report: Hauptman also briefly addressed rumors that financial regulators could be consolidated, emphasizing that although he has “zero authority over this,” he’s not in favor of it.

What Next for Credit Unions and NCUA

There is much difference in the role that NCUA board members see for themselves to ensure the agency’s future independence.

Otsuka is the most clear and determined in her view. She aligns this position as essential for credit union’s to maintain their “difference” which she calls their “competitive advantage.”

Board Chair Hauptman is also clear.  It’s not my issue. It’s up to Congress.

Harper takes no overt position except to predict a stronger NCUA,  Once again displaying his adept use  of the intentionally imprecise comment.

There were  many topics raised at GAC clamoring for credit union’s attention and backing-from taxation to overdraft fee disclosures.

In almost all the most consequential topics, the outcome for credit unions will be decided by their political influence as manifested by their members’ actions not lobbying capacity.

Sooner or later some element of NCUA’s independent authority will arise.  Who can the credit union system count on to support their point of view of NCUA’s status?

 

 

 

Telling stories is a leadership art.  They stick in our minds much longer than financial performance numbers or rhetorical marketing phrases.

They present authentic moments from real life situations with which all can relate.

Stories honor individual actions and illustrate the special  service culture of a credit union.

One would also hope these are part of the messages shared with congressional staffs during Hill visits this week.

Here are two examples from WEOKIE CU’s CEO’s monthly staff update.

The 599 FICO Score

“David, a non-member, applied for a loan with 599 credit score. This app would have been easy to decline and move on due to his poor and limited credit. Wanda and Kyla worked together to figure out why he had such challenging credit.

“He has a great career with plenty of income. Long story short he had to spend some time in the hospital which caused a lot of medial debt and insurance was not cooperating. We were able to help him get an auto loan and hopefully, we created a member for life.”

To Whom It May Concern-“She’s a Keeper”

(a member’s note)

“To whom it may concern: I have had the pleasure of working with Shirley for several days now. I just want to tell you that she is a breath of fresh air to customers!

Shirley went way out of her way to help me, while the other bank did everything they could do to cause problems.  She initiated a 3-way call that helped solve the problems the other bank was trying to create. You rarely see this type of customer service anymore, Shirley is one of the best problem solvers I have ever seen. Just a note to whom it concern: she is a keeper!”

 Changemakers in a  Service Culture

The CEO describes these efforts to take great care of  members  as follows:

Changemakers are individuals dedicated to positively impacting the people and places around them. They are often seen as visionary, collaborative, purposeful, and empathetic. They possess critical thinking and problem solving skills as a prerequisite.

No challenge is too big, every story is relevant, and every person has a purpose. Changemakers live the mission of changing the lives in our communities, one person at a time by being the best place our employees ever worked, and the best place our members have ever banked.