WASHINGTON/ARLINGTON, Va.– In what would be a historic turning point in U.S. credit union history, the Credit Union National Association (CUNA) and the National Association of Federally-Insured Credit Unions (NAFCU) have announced plans to merge and form a new organization to be called America’s Credit Unions.
CUNA President and CEO Jim Nussle will hold the same position with the merged organization. NAFCU reported its president and CEO, Dan Berger, made a decision earlier this year to step aside to fulfill family obligations and pursue other opportunities, but he will remain at the association until year-end before departing.
According to the associations, the boards voted unanimously in May to merge the two organizations. The merger will now be subject to approval from members of CUNA and NAFCU during a 60-day voting period, which is planned to begin later this month.
While the associations did not cite the declining number of credit unions as a reason for the merger, dues dollars have decreased for all CU organizations, as reflected in the consolidation among CUNA-affiliated state CU leagues. NAFCU earlier changed its name and membership eligibility to open membership to federally insured credit unions, meaning state-chartered CUs could join, not just federal charters.
The Financials
According to IRS Form 990 data available through ProPublica, CUNA posted a loss of $5.362 million for its fiscal year 2021, following a loss of $9.8 million in fiscal year 2020. For 2021, the trade group had total revenue of $69.543 million against total expenses of $74.906 million. It reported total net assets of $41.038 million.
Both 2020 and 2021 were years marked by the pandemic, which shut down many of the events and meeting sponsored by the trade associations that are significant revenue generators.
In 2021, CEO Jim Nussle was CUNA’s highest compensated employee with reportable W2 compensation of $1.798 million, plus $487,821 in other compensation from organization and related organizations.
The same 990 information filed by NAFCU shows the trade group has remained in the black. For its fiscal year 2021, NAFCU reported total revenue of $21.551 million and net revenue of $1.725 million, with net assets of $18.028 million. It showed $1.795 million in net income in 2020.
16-Person Board to Be Formed
Should members approve the merger, America’s Credit Unions will legally be established no earlier than January 2024, the associations said, with the intent to be fully operational by early 2025. The new association will initially be governed by a 16-person board. The transition board will include current board members from both CUNA and NAFCU, including members of each board’s executive committee, the associations said.
‘Doubling Down’
“By bringing together these two powerful credit union associations we are doubling down on our commitment to ensure the growth and prosperity of all credit unions across the nation and the 137 million Americans they serve,” said Nussle. “We look forward to uniting CUNA and NAFCU in what will be an exciting new chapter ahead, and we’re thrilled about the opportunities this will create for our members, employees, and business partners.”
Added Berger, “Both CUNA and NAFCU have worked together over the years to achieve victories for the credit union industry, and now the sky is the limit. I believe this is the best path forward for the industry. A new, singular association under Jim’s fervent leadership will be able to harness the combined talent of both organizations to provide outstanding value to our members and ensure every household in America has the best credit union to serve them.”
‘Highly Influential’
In a statement, CUNA and NAFCU said that by combining strengths into a single entity, America’s Credit Unions “will be a highly influential and effective voice” for credit unions in Washington, D.C., and, in partnerships with the leagues, across all 50 states, Puerto Rico and Guam.
Chairs Issue Statements
“Both organizations have worked together to achieve great victories for the industry. This merger will provide the opportunity to innovate and strengthen the credit union industry as we respond to the banking challenges of the future,” said Lisa Ginter, chair of the CUNA board and president and CEO of CommunityAmerica Credit Union in Lenexa, Kan.
“We have the utmost respect for both associations and their employees and look forward to working together as we integrate the two organizations to best support the credit union industry. We appreciate Dan’s relentless focus on growing NAFCU and serving its members with aggressive advocacy and 'extreme member service,' and wish him much luck in his future endeavors,” said Gary Grinnell, chair of the NAFCU board and president and CEO of Corning Credit Union in New York.
History of Groups
CUNA was formed in 1934 in Estes Park, Colo., during a now-famous meeting that featured many well-known credit union pioneers. NAFCU was formed in 1967 by a group of credit union leaders in California who felt federal charters were being underrepresented in Washington.