A task force meets in Dallas Thursday and Friday to set theschedule of events that will culminate in a spring vote of morethan 660 credit unions on the proposed new Cornerstone Credit Union League that would merge theArkansas Credit Union League, the Credit Union Association ofOklahoma and the Texas Credit Union League.

Although leaders and board members of the credit union leaguesfavor the consolidation, they said, it must be approved by amajority vote of the credit unions in each state. If credit unionsapprove the consolidation in April or May, Cornerstone will be thelargest league in the nation.

The credit unions in each state were notified at their annualleague meetings last year that the three leagues were discussing aconsolidation proposal. On Dec. 17, the boards of the three leaguesannounced their intention to pursue consolidation into a singleregional organization operating as Cornerstone Credit UnionLeague.

The Regionalization Task Force is meeting this week to schedulethe distribution of information, town hall events and phoneconferences about the consolidation over the next five months,which will help credit unions decide whether to vote for or againstthe proposed merger.

“At this meeting, we'll be discussing the roll out plan forgetting the information to the respective memberships so they canvote on the consolidation in April and May,” said Texas Credit Union League President/CEO Dick Ensweiler. “Ascheduled roll out of activities will provide a lotinformation. We will also have a website that members can goto get more information, and we will be regularly communicatingwith credit unions through league channels.”

He also said credit unions will receive a packet of informationdetailing how the Cornerstone Credit Union League will be organizedand managed under its bylaws and business plan. Town hall meetingsand conference calls also will be scheduled, allowing credit unionsthe opportunity to ask questions about the consolidation.

Ensweiler, as well as Gary Jones, president/CEO of Credit Union Association ofOklahoma and Dwayne Ashcraft, board chair of the Arkansas Credit Union League, all indicated they havereceived positive feedback from credit unions in their state aboutthe proposed merger.

“In my opinion, I think the credit unions will be verysupportive of the consolidation,” said Ashcraft. “The ACUL boardvoted to support it, and we are hoping the majority of creditunions will vote to proceed with the consolidation.”

In particular, the consolidation will provide the 62 creditunions in Arkansas and the 69 credit unions in Oklahoma with accessto expanded products and services. For example, Ashcraft saidCornerstone would provide field representatives to assist creditunions across Arkansas.

Jones pointed out the new league would strengthen and deepencredit union advocacy, networking and educational opportunities,while keeping a strong presence in each state. AlthoughCornerstone's operations would be based in Texas, an office willremain in each state capital to advocate and protect the interestsof credit unions in their respective state legislatures.

“We (task force) worked to great lengths to do (theconsolidation) properly….to deliver an organization that is strongand effective for all of our stakeholders,” said Jones. “My goal isto be transparent about the consolidation and to answer any and allquestions from the stakeholders to make sure they are fully awareof why and what we are doing. Based on my conversations with(credit unions), I think we'll have strong support (for theconsolidation).”

Ensweiler also said he has received positive feedback in Texaswhere there are 535 credit unions.

“I have not heard anything negative,” he said. “There have beensome people who have had some questions or clarifications.”

“I think it is a common feeling around the credit union fieldthat the (credit union) base is shrinking because of mergers,”Ensweiler said. “So I don't think credit unions are surprised thattheir associations also have to merge. It's common knowledge in thecredit union space that you have to change if you want to stayvital.”

A wave of league consolidations began in 2007 when the North andSouth Dakota Credit Union Leagues formed the Credit UnionAssociation of the Dakotas. Later, the Maryland and Washington,D.C., leagues combined as did the Arizona, Colorado and Wyomingcredit union leagues under the Mountain West Credit Union Association, the Alabama and Floridacredit union leagues merged under the League of Southeastern CreditUnions, and the Oregon and Washington credit union leaguesconsolidated under the Northwest Credit Union Association.

What's more, in early December, the North Carolina Credit Union League and the South Carolina Credit Union League boards of directorsauthorized a six-member task force to explore the consolidation ofthe two leagues.

Not all merger proposals went through. The Maryland and DCCredit Union Association and New Jersey Credit Union Leaguebacked off their plans to consolidate in June 2011.