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This Child Here

Readers may be aware of my interest in and support for Ukraine in their fight for freedom.  Occasionally I write posts about events in this country under daily attack by Russia.

There are many opportunities to support Ukraine from direct donations to organizations in-country to funding students and persons living in the US and other countries of refuge.

I just learned about another long-standing organization called This Child Here founded by a Presbyterian minister in 2006.  The leader is Robert Gamble who tells of his initial work with homeless youths in the disrupted society following the country’s independence.  This effort came in mid career, after serving five years in the Coast Guard and then attending Princeton Theological Seminary to enter the ministry.  He has served as pastor for five churches throughout the denomination.

He writes in 2007 of his initial experience working with an NGO in Ukraine to help homeless youth:

You don’t have foster families in Ukraine. No one can afford another child. “You have three children,”a taxi driver said to me, “you must be a rich man.” 

While I am here there are times I drink too much but most times too little. I spend like a poor man but live a life that is rich. I listen to idiots, skeptics, learned people and fools, I learn from the suffering of children. I doubt and trust, give away and receive. I get robbed and restored, applauded and shunned. 

I see churches void of life and attended worship with more life than my comfort zones can handle. I gave one sermon; it wasn’t in a pulpit , and I didn’t wear a robe . I stood on a rented stage in an old movie auditorium and it hardly lasted seven minutes, but I felt alive and honored as every word I spoke was repeated in Russian.

Today’s Work

Gamble’s work leading the organization now alternates between three months on the ground in Ukraine followed by three months of travel throughout the US fund raising for his 501 C 3.  His current itinerary shows 98 stops with churches, local groups such as Rotary and “friends” on his September 7 to November 17 return.

His group’s  purpose today:

We work with families displaced by the war. Thousands of people have fled cities in the east and arrived in Izmail, Ukraine in the west. As many fathers are in the military or still residing in places now dangerous, these families often consist of mothers and children.

We provide products from grocery stores, and centres for youth and children’s activities, including sports, music, art, and programs led by psychologists. Through these activities, summer camps, and the supportive community we have built, we offer therapy for the trauma and shock suffered by these families.  This Child Here, Inc. is a Validated Ministry in the Presbyterian Church (USA).  

The work is not without danger as recorded in this brief 2003 video.

His Belief:  People Change People

When this war is over, people will read about what was done, not just between armies, but behind the lines where people help people and people change people, for the better.

This is an American who for two decades has invested his energy, mind and purpose with the belief that people changing people  will make the difference in the future of Ukraine.  And I believe in other societies as well, including ours.

As I learn more, I will share this person’s journey of a committed life.

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Celebrating a CEO’s 48 Years at the Credit Union

On October 1 CEO Catherine Tierney  entered her 49th year with Community First Credit Union.  The Appleton, WI based coop is today  $5.8 billion in assets  serving 158,000 members with 29 branches and over 580 employees.

She posted this thank you on her LinkedIn page upon beginning her new year. I describe her post using her own words as, the gift of doing what you love:

“October 1st is a special day to me.

“Today marks a milestone of 48 incredible years at Community First Credit Union. It’s been a journey filled with growth, challenges, and countless memories that have shaped not only my professional life but my personal one too.

“From the early days of learning the business to now being part of this amazing organization’s transformation, I’m grateful for the opportunity to have worked alongside so many talented people who share the same dedication and passion for our members, our industry and our communities.

“Thank you to my colleagues, past and present, and to our loyal members for being part of this remarkable journey. Here’s to the gift of doing what you love and the joy that comes from making a difference together!”

From the archives I thought it would be helpful for people who may not met her to see how she and the credit union present their work.  Following are two examples of the joy making a difference together.

The first is a short excerpt of a Catherine interview from several decades ago about how the credit union employees are the first responders for identifying members in need:

(https://youtu.be/lzAN0HXXQBo)

This second video is a story how Community First helped a young couple get started in life when they didn’t think there was any way to adopt their son and then buy a home.

(https://www.youtube.com/watch?v=d6AQbDYSmpg)

Catherine’s long service of leadership with her team is an example of what credit unions do best for their members and communities.   All who believe in the difference credit unions can deliver, should be grateful for her two generations of professional member-centric commitment.

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Almost 100,000 Members Vote in SECU Election 

The largest member vote in a credit union board election resulted in the slate of four incumbents all winning by a wide margin.

The cumulative total vote for the four winners was 232,452 (67%).   The four member-nominated candidates total was 113,117 (33%).  The headline in Jim Blaine’s blog after the vote was announced:  Pretty Strong Thumping!

The outcome was the exact opposite of the 2023 vote where the three challengers to the board slate were all elected.   The vote was significant in other respects.   Adding the highest total votes for the leaders of each slate, suggests almost (62,392 and 31,203) 94,000 or more members voted.

This is an extraordinary level of participation.  It shows the interest and willingness of members to participated in the selection of their leaders.  Once awakened in their role, will they continue to follow credit union events as more than a customer?  Have  their ownership “genes” been activated?   Will next year’s election involve a choice?

The Substance of the Annual Meeting

The meeting was broadcast on YouTube.  SECU staff had posted the results later with the full recording.  Also posted are the financial summary for fiscal 2024 and links to the 54 page 2024 CPA audit.

While the vote was the main outcome, that announcement took just several minutes at the very end.  The meeting’s substance were reports read by the Board chair, the Foundation’s chair (with video summary) and nominating committee chair.

The most important parts of the agenda were CEO Leigh Brady’s report and then her response to dozens of member questions sent in advance.  Putting these two parts together a relevant title for the meeting’s substance might be the Leigh Brady Show.

The CEO’s Performance Report After Her First Year

After opening remarks on Helene’s devastation in Western Carolina and saying all employees were safe, Brady stated her personal vision as, “we work together to leave SECU better than we found it.” (1:03).   She provided a summary of major financial trends, both positive and not, showed a chart of an increase in SECU’s share of member loans (25.8%),  and compared its  loan charge-offs for the first six months of 2024 to the five largest credit unions.  SECU’s outcome (.74%) was between Navy FCU’s 2.54% and BECU’s .59%

She introduced a new SECU’s data point, its initial Net Promoter Score (63), as an indication of member loyalty.  Her closing was a listing of FY ’25 priorities including new member reward or cash back credit cards, a new mortgage servicing platform, voice authentication, selection of a new core data processing vendor, replacing branch ATM’s and a new digital platform.  She noted that several of these initiatives, especially the new core, will extend over multiple years.

Her presentation was well organized, detailed with graphs and comparisons, and with specific  priorities for the new year.  Her very full report could be a model for other CEO’s in disclosing their prior year’s results and future plans to the member-owners.

Members’ Q&A

The second part of Brady’s role was spending an hour answering 50-60 questions from members that were submitted prior to the meeting..   There were few “softballs” in these queries.  And while she may not have fully responded on some points, the questions were the most interesting part of this event for me,  and probably the members who submitted them.  Here is a small sample of some of the topics raised:

  • Why aren’t members able to speak at the annual meeting?
  • Will you post all these questions (and replies) on the web?
  • Why were members (running for the board) not able to gather signatures at the branches?
  • Why are all the board members from one region of the state?
  • Tiered base loan pricing had multiple questions such as: Is one member’s financial well-being more important than another’s?
  • Does tiered-base pricing exclude anyone? Can lending officers make exceptions to the process?
  • Why are savings and money market rates not competitive with other credit unions?
  • In the next five years what do you see as the greatest threats to the credit union?
  • Does the Board and President feel they are making decisions in the best interests of the members?
  • Please explain how the credit union lost $23 million in the CashApp member fraud.
  • All board nominations were for persons already on the board. Would setting term limits help with the perception that this (process) is a conflict of interest?
  • What is the status of the Local Government FCU’s separation and will it have an impact on the members?
  • \What do I have to do to become a member of the board?
  • Will the credit union offer digital currency?
  • What are SECU’s plans for the secondary (home loan) market?   etc, etc, . . Go to the video to learn her responses.

Brady (and Board) in Control

There are dozens more questions, all of which CEO Brady answered. She replied even in areas concerning board conduct and policy or in the case of the CashApp fraud loss, an internal issue.

This hour long Q&A was the most  extended explanation, an in-depth discussion I have seen in no other credit union’s annual meeting.  Even as it appeared most of the answers were being read from a script, she addressed each topic.  Some might feel she failed to see some of the underlying concerns; but no one could argue that  all the pointed, potentially embarrassing or even opposing views were not included.  She stood her ground.

That stance is the final takeaway.   The meeting was a very controlled event.  The camera never wavered from only showing the individual speaker.  Even when Brady was answering questions, the person asking them was heard but never appeared on camera.

Several times Brady acknowledged attendee’s responses to her remarks, but there was never an audience view.  Board members spoke on camera, but were never shown sitting together. The Foundation video and presenter’s slides were seamlessly woven side by side on the screen with the speaker.

This YouTube broadcast was a very well-produced and visually managed event showing only the four speakers and nothing else. No chance for any spontaneity or audience reaction.

Brady closed her CEO presentation by referencing this year’s meeting to include “another contested election” that will not impede our going forward.  One cannot help but come away with the feeling that this year’s event was a reaction to the two prior meetings where the board must have felt things moved out of their control.  This time the outcome which had some excellent content, especially the member questions, was an exercise in the power of incumbency.

Will that exercise in authority work to promote the members’ and SECU’s long term viability?   Or, will SECU just transform into another example of a large credit union similar in operations to its peers?

The Core Issue: Effective Strategy

My understanding of the last two plus years of public controversy about SECU is that the core issue is effective strategy.  While there were specific tactical topics such as risk-based lending, critics’ deep concern was whether SECU’s members would be as valued if the credit union offerings just looked like every other financial institution’s.

Aligning SECU’s products and services to conform with the majority ot its peers may certainly garner some low hanging fruit.  SECU’s response to critiques of its tiered lending was its intent to “serve all its eligible members,” especially the A credit score borrowers going elsewhere.

The previous cooperative vision of “send us your moma” was centered on members who may not have had A options readily available, and needed a fair and trusted institution to turn to.

Over time this member-centric focus extended to innovations in salary advance loans, broker dealer options, life insurance, a state-wide 529 insured college savings account and even how repossessed real estate was managed.  The SECU Foundation’s innovative funding model has made it  a marketing presence for the credit union throughout North Carolina.

These financial service expansions were based on a belief that to beat the competition, one cannot simply emulate them.  Hence when asked about offering 30-year fixed rate real estate loans conforming to Fannie/Freddie requirements, the response was, Why compete with the government’s product?

Time will tell how this most recent strategic overlay will mesh with the legacy elements on which the credit union was built: its branch structure, decentralized decisions, advisory board roles and unique partnerships within the industry.

The datapoint from the meeting that may be most  relevant in this ongoing transformation is the 33% who voted against the incumbents.   That number suggests a more studied understanding to integrate past success and current changes might be useful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Results of Largest Credit Union Election Ever Revealed Today

At 1:00 pm the Annual Meeting for SECU NC will commence.  The meeting can be viewed virtually by going to the credit union’s homepage.

This is an unprecedented event in the history of America’s cooperative financial system. With an estimated 2.8 million ballots mailed or by voting online (or in person today), it will be the largest election for a cu board ever conducted.

SECU is the second largest credit union in America with $56 billion in assets. It is unusual for the member-owners of any credit union to have a choice in their directors. In this case, there are two competing slates of candidates with differing business priorities and strategies for the cooperative.

Most importantly everyone can watch this meeting live, virtually.  The Agenda includes the standard reports from the Chair, auditors CEO and the foundation.  This year’s meeting procedures have been changed to limit open interaction with members during the meeting.

Rule 5. Up to one hour will be set aside during the meeting for a question-and-answer session. Members must submit any questions in advance of the meeting. To permit as many members to ask questions as possible, we ask that you limit yourself to one question or topic.

The final agenda item is the announcement of the members’ votes to fill the four open director positions. Both sides have urged members to vote.  There were active social media campaigns by the incumbents and the member-nominated group.  These campaigns extended over 60 days once all nominees were known.

If the voting turnout is significant or should there be a split result, one probable outcome will be an energized, involved and aware group of member-owners.   Once engaged in their franchise role, it could change forever the governance dynamics of the credit union going forward.

A Cooperative Awakening?

SECU’s tagline on its website with the information about the member annual meeting is:

Your voice. Your right. Your vote.

While credit unions routinely cite their democratic one vote per member-owner design, it is rarely provided in board elections.  This example will demonstrate the ability of the election process for any credit union.  And just maybe, reawaken member-owner enthusiasm for their pivotal role  in their financial cooperative.

I plan to watch the event and report the outcome on Wednesday.

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Join or Die: Credit Unions, Social Capital and Democracy

A 2023 documentary film’s message puts credit unions right at the center of our current political angst.

The film is Join or Die. ( this is the 3 minute trailer) It is based on the work of social scientist Robert Putman who in 2000 published a book called Bowling Alone.   It documented the decline of local organizations that create the connections on which individuals built their trust in and sense of community.

The author calls this foundation of mutual confidence and relationships “Social Capital.”  In his analysis,  these organizational connections have real value.

The film updates this  decades long continuing trend of increasing social isolation.   He believes the loss of local networks has contributed to the decline of confidence in American democracy.   For it is in our connections with multiple organization that we develop awareness of mutual obligations and the common good.

The Credit Union Example

The cooperative movement, and especially credit unions, were founded with social capital.  Unlike other profit making firms, only minimal shares were pledged by organizers to receive a credit union charter.  The Field of Membership was the existing external network that provided the connections giving a new charter its mutual  support and market focus.

The net worth or financial capital requirement was a flow concept.   Either 10% or 5% of revenue had to be set aside into reserves until a certain ratio of net worth to risk assets was attained.

In the 1998 Credit Union Membership Act this “flow” concept of capital adequacy was replaced with a “stock” measure–that is the ratio of net worth to assets.  This financial point in time definition was expanded by the 2022 imposition of a risk-based capital.  This raised the  well capitalized ratio from 7% to 9%.

The founding cooperative bond of social capital was replaced with financial ratios.  This transformation was accelerated as credit unions evolved their fields of membership into new groups, areas or criteria with little connection to each other.  Instead of established connections,  credit unions began relying on new brand creations and marketing to establish a their presence in the markets they sought to serve.

A Second Factor

As credit unions moved further and further from points of connection with relationships of trust, a second decline was in member-owner governance.   The annual meetings no longer featured contested board elections; rather the board nominated the same number of internally selected candidates as vacancies.  No member votes were cast; the positions were filled by acclamation.

This resulted in the erosion of any pretense of democratic governance.  Increasingly self-appointed boards grew further and further away from their members.  Credit unions were not alone.  Putman’s work suggests that over half of America’s social/civic infrastructure has disappeared since he first wrote.

As these foundational experiences of local connection are lost, individuals become more isolated. And with that feeling, so does confidence in the governmental process, both locally and nationally.

One can debate whether credit unions contributed to, or are just another example of, institutions caught up in  a fundamental transition of community relationships.   It is  certainly possible to find longstanding  successful credit unions still serving their core markets.  One indicator is a credit union’s name such as Wright-Patt Credit Union. The counter evidence would be examples where the institution has repositioned itself with growth efforts  based on leveraging of members’ financial capital with mergers or bank purchases.

The film highlights Putman’s analysis of what makes American democracy work.

It explains  why our traditional political process of compromise is much more difficult.

Finally he suggests what can be done about it.

While the film documents the loss of social infrastructure, there is good news.   As the trends are laid out, the film closes with the message, “You can decide to change history.”   The “financialization” of credit unions with their loss of a social capital bonding can be recovered.  But how to start?

Re-establishing Credit Union’s Social Capital Advantage

A recent communication from the Texas Credit Union Commission’s monthly newsletter provides a place to reaffirm this core cooperative asset.  Change comes from the top.  Here is an excerpt from their Newsletter that I believe directly speaks to Putnam’s concerns.

The Importance of Board Meeting Attendance in a Time of Rapid Technological Change

Critical to the long-term success of a credit union is an active, involved board that provides proper oversight of operations and a sound strategic direction for the future of the credit union. One of the keys to ensuring that a board is successful is regular, participatory attendance.

This is particularly true given the rapid pace of technological change and the need for partnerships with financial technology companies (“Fintechs”) to provide services wanted by your members. . . Management and the board must ensure that . . .the Fintechs chosen are a good fit for the credit union and the membership.  

Board involvement is important in Fintech selection and other important strategic decisions affecting your credit union. The issue of board attendance is a tricky one. Board members are volunteers with their own jobs, families, and busy lives to balance in addition to the voluntary obligations of serving on a credit union board. However, missed meetings seriously diminish the effectiveness of the entire board, and a director’s irregular or inconsistent meeting attendance could result in removal from the board. . .

It is important for board meeting minutes to reflect if a director’s absence is excused or unexcused. The lack of a record of an affirmative vote by the board is construed as an unexcused absence. . . Once a director misses . . . the prescribed number of meetings . . .there is nothing the board can do except to fill the vacancy with a new person within sixty days. . .

This Texas regulator’s message is a clear reminder of every board’s guiding role and responsibility, from NCUA’s three directors to the system’s smallest of credit unions,

This is an important leadership statement from one component of the credit union’s unique dual chartering system.  Board members should actively Join in their roles, or credit unions could Die.

 

 

 

 

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Celebrating a Year of Extraordinary Credit Union Accomplishment

There have been pivotal years in credit union history, none more so than 1984.

NCUA and credit unions celebrated unprecedented market place, legislative and industry financial success.  NCUA issued over 100 press releases over the 12 months.  These announcements covered credit union performance, agency initiatives, and multiple press and political comments on the cooperative system.  Here is a very small sample, in date order, of these Agency communications:

Jan  4:   American Banker reports credit unions grow faster.

Jan 11:  CLF pays quarterly dividend of 9.0%.

Jan 16:   NCUA Acts to recover Penn Square losses

Feb 15:  Credit Union Stamp Released in Massachusetts

Feb 29:  Symposium on College Student Credit Unions

Mar  6:   Financial Performance Reports a Hit

Mar  9:   NCUA Board to Meet in Tucson

Mar 14:  Credit Unions Fastest Growing Financial Institutions

Mar 21:  Callahan Testifies Before Senate Banking Committee on Insurance Fund Capital

Mar 24:  NCUA to hold First Conference of Federal and State Examiners

Apr   4:   Banking Committee Approves Capitalization Bill

Aor  18:  NCUA Names Koppin Supervisory Examiner of the Year

Apr  30:  Credit union Statistics for March

May 15:  NCUA Central and Regional Office Realignment

May 24:  NCUA Investment Hotline Unveiled

May 30: Credit Union chartered for Cannon Hills Employees

June 19:  50th Anniversary Celebration

June 22:  President Issues FCU Week Proclamation

July 18:  President signs Bill to Strengthen Insurance Fund

July 26:  NCUA 1985 Budget down 4.9%

Aug 21:  FCU Growth Surges at Midyear

Aug 31:  Two Per Credit Union Limit Placed on Las Vegas Conference

Oct  9:   Board Adopts Capitalization Rule

Oct 12:  Credit Union Membership tops 50 Million

Oct  22:  Credit Unions Most Popular Financial Institutions

Nov 15:   Board Slashed Operating Fee Scale 24%

Nov  23:  Seger, Breeden, Connell, Pratt Announced as Speakers at Las Vegas Conference

Dec 18:  American Banker Reports CU’s Growing Faster than Thrifts

Over 70 additional releases about key Agency and credit union events were issued.

All of these releases were amplified in the monthly NCUA News sent to all credit unions as shown in the samples below.

Additionally, NCUA created a Video Network in which the Agency communicated significant changes and events both internally and with credit unions.  Here is the brief opening segment of an hour long video introducing the recapitalized  NCUSIF.

 

(https://www.youtube.com/watch?v=Wsq74FkMrPQ)

Forty Years On and Context for Today

In 1984 there were over 16,000 active credit unions.  All FCU’s were examined annually overseen by six regional offices and a staff of just over 600.  The brief excerpts above of the Agency’s wide-ranging activities and reports are a tiny sample of the interactions and communications with the credit union system, Congress, the White House and the public press.

These events occurred in the third year of Ed Callahan’s chairmanship which began in October 1981. The NCUA board, Bucky Sebastian, Executive Director, and the Senior staff believed that public service is a public responsibility.  Senior employees were available, willing and eager to engage with all constituents.   And most importantly. accountable to those who entrusted their funds and members’ futures to the regulator for oversight.

A highpoint of this interaction was the December 1984 National Credit Union Conference organized and led by NCUA with the support of the credit union system.  It was a first for NCUA, and the largest conference ever held at that point in credit union history.  The event was a coming together to celebrate the cooperative system’s growing relevance and success.  And to share views about the future of the movement by all those who were dedicating their lives to their members’ well-being.

In 1984 as this year, there was a Presidential election.  Everyone remembers the outcome. NCUA’s leadership and its results in 1984 are a reminder that good government is also good politics.  An example especially relevant now, four decades later.

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A Farming Town’s Fall Market

Fall, the time for harvest from the land.  Future Farmers of America’s (FFA) greenhouse in Rensselaer Central High School, Indiana.

“Growers for Life.” Fall mums for sale,  $10 each at the local Saturday farm market.

Pumpkins, the uniquely American fruit. Anything that starts from a flower is botanically a fruit.

Corn, all colors.

Gourds, technically fruits, but realistically fall table decoration.

An enormous sunflower head-a seed bank.

To Autumn by John Keats (1795-1821)

Season of mists and mellow fruitfulness,
  Close bosom-friend of the maturing sun;
Conspiring with him how to load and bless
  With fruit the vines that round the thatch-eves run;
To bend with apples the moss’d cottage-trees,
  And fill all fruit with ripeness to the core;
    To swell the gourd, and plump the hazel shells
  With a sweet kernel; to set budding more,
And still more, later flowers for the bees,
Until they think warm days will never cease,
    For summer has o’er-brimm’d their clammy cells.

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Several Explanations for Credit Union Mergers

While there are almost daily familiar rhetorical press releases  announcing new merger intentions, actual causal motivations are rarely plainly stated.

Descriptions from other areas of economic activity  provides some of the reasons for this ever increasing aspect of cooperative evolution.

CEO’s love unjust gain because money is their highest trust.

There’s nothing wrong with actively working (read: contributing actual value to others) and making a good living from it, but it’s wrong to turn a profit off the time, talent, effort, and creativity of others simply because you wield a capital advantage over them.

Where nothing is forbidden, nothing is required.

Executives are absolutely at a loss of what might happen if they stopped exploiting a gain off of others.

And the ultimate outcome for the member owners:

The chasm between credit union’s design and individual member benefit gets wider and wider.

 

 

 

 

 

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From the Field: Credit Unions Empowering Members and Communities

A critical distinction of the cooperative model is its local advantage.  News commentators assert “all politics is local.”  Military leaders call this capacity “boots on the ground.”  Credit unions described this organizing concept as their field of membership.

When events and institutions affect where and how one lives, that makes their impact personal for individuals.  The capability of credit unions to be seen as a long standing participant of the community they serve, creates generations of loyalty. And in the examples below, superior performance.

Member Feedback at Day Air Credit Union, Dayton Ohio

As part of the net promoter score process, the credit union invites member comments on their experience.  Here are two member notes the CEO recently shared with his team:

Reenetry

1.Day Air Credit Union met me where I was in my walk after being a returning citizen through the Montgomery County reentry community. I was full of fear and didn’t know anything about handling finances or money or getting to where I needed to be in order to be able to get loans and start a business.

Day Air Credit Union along with several individuals from the Montgomery County reentry community helped me succeed in my walk and in my business. Thank you so very much.

Don’t Sell Out

2.You guys help me through a situation, that even though you knew how I got there, you knew it wasn’t my fault (100% my fault) … You guys knew it was technically fraud against me. You did not have to help me, but you did, so that deserves a 10 in my book.

It shows the character of the people in your organization. You guys really are there for your members, it’s kind of like what families and friends are supposed to be, no judgment just being there when someone needs them to be and just doing the right thing. even if that right thing is to just be there to listen about someone’s life that has turned into a freaking dumpster fire… really you guys have been great. You’ve got a customer for life. Unless you sellout; other than that, a 10 in my book.

Through August 2024, the $847 million Day Air reports an ROA of 1.47%, share growth of 7.54%, net worth of 13% and an operating expense/asset ratio of 2.43%.

Creating a Statewide Collection Effort for Food Banks

The following is a release from First Harvest  describing a New Jersey wide effort in which  credit unions will collect canned food donations for local food banks.  This ad hoc network effort relies on the dozens of local branches as drop off and collection centers.   Another example of the advantage of a local presence and personal interaction with members.

First Harvest Credit Union, Affinity Federal Credit Union, and EdiFi Credit Union have come together to launch the New Jersey Credit Unions Food Cooperative and have engaged 27 New Jersey credit unions to participate in the initiative and help address the growing hunger crisis in New Jersey.

All participating credit unions and their select branches will serve as collection locations, allowing for broader geographic coverage across New Jersey, which will support dozens of food pantries and organizations throughout the state.

The program runs from October 1 through November

To donate, credit union members and residents throughout New Jersey can find a participating credit union listed below, and its nearest branch to drop off non-perishable food items. Each credit union branch will directly support a food pantry or organization within the community it serves. 

First Harvest President & CEO Mike Dinneen notes: “As credit unions, we are always stronger when we partner together. New Jersey has over 130 credit unions, serving a wide variety of rural, urban and suburban communities. One thing that is consistent is the food and affordability crisis that is impacting all of our residents.

Credit unions have an inherent mission and proven ability to take the reins when there is a need to help those who are underserved or in need, and I am proud to stand with these amazing New Jersey credit union leaders and implement this important member-driven mission.”

 The twenty-seven participating credit unions are then listed.  Local matters. That is how most of us ground our lives and cooperate with others in community.

 

 

 

 

 

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Voting Closes Tomorrow in Critical North Carolina Election

On Tuesday Oct 1, remote virtual voting for SECU’s (NC) 2.8 million members’ annual director’s election will end.  Mail ballots must be postmarked by then, but in-person votes can still be cast at the Annual Meeting on October 8th in Greensboro.

I summarized several issues between the two slates of four candidates a week ago.  For I believe the significance of this unique event extends far beyond SECU’s members, North Carolina and into the entire credit union system.

Member-owner voting on anything, except a credit union’s demise via merger, is extraordinarily rare. This example of the member franchise being conducted  demonstrates that elections in large credit unions are feasible.

Members now have a say via voting about the credit union’s future.  It challenges the current routine practice of self-perpetuating board oversight with no member-owner input.  This latter approach is, unfortunately,  the process followed by most credit union at the moment.

Campaign Updates

Facebook posts with social media ads are being run by both sides.   The four member nominated  SECUforALL site includes dozens upon dozens of member comments and videos.  It is updated daily.  For example, it now includes “links to local news outlets providing lists of trusted charities and relief organization accepting donations”  for North Carolina victims of hurricane Helene.

These members and many former employees have criticized the announced annual meeting rules which limit member participation and comments compared with prior practice.   Their posts also pointed out that the credit union is paying for the incumbents slate’s ads on social media.

I believe both sides would agree with Chairman Moon’s video election comment that  “The power of your vote cannot be overstated. Let your voice be heard.”  That’s why this election is about more than choosing between two slates of candidates.  It illustrates what the member-owners’ role in a credit union is supposed to be.

Two Contrasting Views of Credit Union Leadership

Cooperative design inverts the traditional structure of financial services leadership.   In long-established and certainly modern day financial firms, power is concentrated, either in the hands of those at the top or those who contribute the most capital (ownership stake).

In credit unions power flows up from the bottom, from the member-owners.  This was the intent of the democratic one-person-one vote election for directors at the required annual meeting.

This grass roots, member-driven founding became so successful, credit unions began hiring full time managers.  Growth and expansion accelerated after deregulation.  Successive leaders grew increasingly distant from their credit union’s founding generations and motivations.

This ever widening scope of operations separated management and  boards from routine interaction with members. Today’s leadership teams who benefit from the legacy of hundreds of millions in assets, believe it is now their sole prerogative  to  configure the organization apart from any prior commitments—even to the point of merger and charter dissolution.

The boards of large credit unions have become insulated, like a private group who amplify and reinforce the instincts of this self-selected few.  It is their authority to alone  shape the future. The unique coop design is now turned upside down mirroring the current structure of for-profit financial organizations.  Here is a comment from another credit union’s member on the SECUforAll  site:

Recasting the Coop Model

Credit unions were created to  break from the traditional way financial services were practiced: for example, paying interest on share draft accounts; offering skip-a-pay and loan rebates; permitting cosigners as “collateral” for loan limits.   Or to use the biblical phrase, “overturning the tables of the money changers” providing consumer financial options.

As credit union’s market ambitions grew, the prevailing ethos became “to beat the competition, a credit had to become the competition.”  And their leadership and advice was increasingly drawn from that perspective, not from the legacy culture that built the system’s present financial standing.

SECU’s Election and the Stakeholders Watching

SECU’s election choice is between two visions of what a credit union is.  Most large credit union leaders believe the power of the organization rests at the top.  Success entails unfettered growth, seeking mergers and/or buying assets such as banks, and using all the tools of financial leverage such as subordinated debt, third party originations and borrowing, should shares fall short.

However, credit unions were founded on the principle that power was created by empowering others.   Credit union pioneers believed the wealth of an organization was measured by how much it was shared, not how much the firm accumulated. That the strength of a  coop was in trusted relationships, not superior financial ratios.  Member service and values is how to attract committed employees. not bonuses.

The outcome of this year’s vote will likely resonate far beyond Greensboro and North Carolina.  If ten thousand, a hundred thousand or even more members see their democratic ownership role more clearly, every SECU meeting going forward will have a more engaged participation.   And the credit union system will have an example of what modern day cooperative governance can be.

I will publish the link to the October 8 SECU Annual Meeting when it is available.