Member credit unions of the Texas Credit Union League have“overwhelmingly voted” in favor of merging with the ArkansasCredit Union League and the Credit Union Association of Oklahoma toform a new regional cooperative organization – the CornerstoneCredit Union League.

“Texas credit union delegates cast their favorable votesWednesday during TCUL's special member business meeting in Austin,”TCUL said in a statement. The meeting was held in conjunction withTCUL's Texas Governmental Affairs Conference and Member Meeting& Expo that will end Friday.

TCUL did not release a vote count. There are approximately 535credit unions in Texas, and 131 altogether in Arkansas andOklahoma.

The credit union members of the Arkansas Credit Union League andthe Credit Union Association of Oklahoma will vote on theconsolidation proposal on April 11 and May 13, respectively.

“A tremendous amount of work, research, and consideration hasgone into this measure,” TCUL President.CEI Dick Ensweiler said. “Iapplaud our member credit unions for recognizing and respecting thepower of collaboration.”

The credit unions in each state were notified at their annualleague meetings in 2012 that the three leagues were discussing a consolidationproposal. On Dec. 17, the boards of the three leagues announcedtheir intention to pursue consolidation into a single regionalorganization. However, the state leagues initially began discussingthe possibility of a merger in 2009.

“I think it is a common feeling around the credit union fieldthat the (credit union) base is shrinking because of mergers,”Ensweiler said in a Jan. 3 Credit Union Times article. “SoI don't think credit unions are surprised that their associationsalso have to merge. It's common knowledge in the credit union spacethat you have to change if you want to stay vital.”

The three leagues held town hall meetings in January andFebruary to inform credit unions about the consolidation and toallow them to ask questions about it.

“The town hall meetings were well attended and were held inevery area of the state,” said Reta Kahley, president/CEO of theArkansas Credit Union League in Little Rock. “To the best of myknowledge, they were very well attended by our credit unions andthe information was very well received. There didn't seem to be alot of opposition to it, but we'll see next week.”

Gary Jones, president/CEO of the Credit Union Association ofOklahoma, could not be reached for comment Wednesday.

Proponents of the consolidation have said it will provide the 62credit unions in Arkansas and the 69 credit unions in Oklahoma withaccess to expanded products and services, and strengthen creditunion advocacy, networking and educational opportunities.

Although Cornerstone's operations would be based in Dallas, anoffice will remain in each state capital to advocate and protectthe interests of credit unions in their respective statelegislatures.

“This is an exciting time for our movement, and the first steptoward the realization of the Cornerstone Credit Union League,”said Paul Trylko, chair of TCUL's board of directors andpresident/CEO of the $612 million Amplify FCU. “We have anextraordinary amount of talent and passion in all threeorganizations, and I'm confident in the future of the CornerstoneCredit Union League.”

If Arkansas and Oklahoma credit unions vote yes, an initialboard of directors will assume positions on the Cornerstone CreditUnion League board of directors with three directors from Arkansas,three directors from Oklahoma, and 12 directors from Texas.

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 December 2012, 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.