Oklahoma, Texas Leagues Close to a Deal
In letters sent to its membership, the Oklahoma league said that under the Texas arrangement it would retain its lobbying operation and a reduced staff in a new headquarters building in Oklahoma City, while at the same time contracting with the Texas league to handle a list of services ranging from training and education to chapter leadership and foundation operation.
In using outsourcing as a means to reduce costs, the Oklahoma league leadership said it was following the pattern of other state leagues by moving toward regional structures. The one-year Texas deal, which has been in the discussion stage for months, was unveiled to the Oklahoma membership at its annual meeting last May in Oklahoma City.
"All services will still come from or through your league, there will still be Oklahoma league staff for you to call with questions or concerns, and your board of directors will remain in place to provide leadership and direction," said the letter signed by interim president/CEO Debra Morrow.
She noted that outsourcing among leagues is not new and mirrors the cooperative nature of CUs and their trade groups. Once the new Oklahoma City headquarters, Credit Union House, opens next May, there will be, however, "some restructuring in the organization chart," she said.
That will include cutting the current 16-member staff to about nine. Some of the staff cuts would come from those in Oklahoma City and some from the lobbying group relocating from Tulsa. Morrow said the board also plans to "reopen the search for a permanent CEO" because that is a logical step in any restructuring. Morrow, an attorney, has been serving as acting chief for more than two years.
Even as the Oklahoma league strikes a deal with the Texas league, "we will continue to seek partnerships with other leagues," she said, noting that co-op arrangements have long been commonplace among leagues although the Oklahoma arrangement is more extensive.
For one, said Morrow, Oklahoma expects to partner with the Missouri Credit Union Association on a volunteer and leadership conference next year.
Leagues that Oklahoma contacted for advice on a possible merger were "forthcoming," Morrow said, stressing, "the spirit of cooperation is alive and well in the leagues."
Under the Texas arrangement, the Oklahoma league expects to open its $1.6 million Credit Union House headquarters during its May annual meeting, which commemorates the organization's 75th anniversary.
Morrow also noted that a Web site for Credit Union House is being developed and should be active within a week, enabling viewers to watch the in-progress construction of the Oklahoma City facility, located blocks from the state capitol.
T&C FCU Members Vote In Favor of USA CU Merger
BLOOMFIELD MILLS, Mich. -- In a landslide vote, the members of T&C Federal Credit Union voted 91% in favor of merging with USA Credit Union of Auburn Hills.
The merger was endorsed by both credit union CEOs, both boards and by Congressman Joe Knollenberg (R-Mich.) and Oakland County Executive L. Brooks Patterson.
Together the $611 million T&C FCU and the $610 million USA CU will form the $1.2 billion Genisys Credit Union and will be the fourth-largest credit union in Michigan. Genisys will have 23 branches, 19 in Southeast Michigan, two in Minnesota and one in Pennsylvania. It will be chartered in Michigan under the Office of Finance and Insurance Regulation and all accounts will continue to be federally insured.
"Both T&C and USA are healthy, financially sound organizations that share a common vision and values for their members," said Mary McDonald, president/CEO of USA Credit Union. "Both have always made the quality of member service their top priority, and both are committed to the communities where their members and employees live and work. I'm proud of this merger, and I'm confident Genisys will be a success."
McDonald will stay on as president for the transition but will retire in 2009. T&C President/CEO Dianne Addington will be CEO of Genisys.
The merger will be finalized later in 2008, and beginning in January 2009, operations will combine slowly over the year.