When credit union members of the Texas Credit Union League were presented with the questionwhether to merge with Arkansas Credit Union League and the CreditUnion Association of Oklahoma to form a new regional cooperativeorganization – the Cornerstone Credit Union League – there was asense of quiet inevitability in the air.

“There was no debate, no questions or anything,” said JohnLederer, president/CEO of the $1 billion Credit Union of Texas inDallas, who voted for the proposal Wednesday during a TCUL specialmeeting in Austin. “I think it was a no-brainer, slam-dunk kind ofthing.”

However, in January and February, the TCUL held town hallmeetings throughout Texas to inform the state credit unions aboutthe formation of Cornerstone Credit Union League, so perhaps all ofthe questions had already been asked and answered, saidLederer.

Only 114 of the state's 535 credit unions that attended thespecial meeting voted. The final vote count was 109 in favor,five, against.

“I have no idea who voted against it,” Lederer said. “I talkedto a few people and if anybody did, they were not willing to admitit.”

Lederer believes the consolidation of the leagues is inevitablebecause of the many mergers that are occurring among credit unionsacross the country. With less dues-paying credit union members, itbecomes increasingly difficult for smaller leagues such as Arkansasand Oklahoma to keep up with rising costs and to deliver theproducts and services credit unions need.

“When I first came to work at Mil-Way Federal Credit Union in1985, there were 120 credit unions in Arkansas. Now, we are in theupper 50s,” said Allen Brown, CEO/president of the $106 millionMil-Way FCU in Texarkana, Ark. “Our dues structure is such to whereit's hard to make ends meet and it's harder to keep raisingdues.”

Arkansas and Oklahoma league members will vote on the merger onApril 11 and May 13, respectively.

Brown anticipates Arkansas credit unions will vote in favor ofthe merger next week.

“One of the things we (Arkansas Credit Union League) did in 1995is that we sold our league services corporation to the Texas CreditUnion League,” said Brown, who was then a board member of the ACUL.“All of our credit unions in Arkansas have access to the resourcescenter in Texas for audit services compliance, HR consulting andother services.

“That has been a very great relationship between their servicecorporations and our credit unions in Arkansas. This, (CornerstoneCredit Union League) in my opinion, is basically the same thing,”he said.

Tim Lyons of the $1.2 billion TTCU in Tulsa, Okla., said thatthe merger of the leagues made more sense as time went by. Thestate leagues initially began discussing the possibility of amerger in 2009.

“When I started in the credit union movement in Oklahoma 25years ago, there were still about 110 credit unions in Oklahoma,and now there are about 70 credit unions in the state, and I knowthere will be fewer (in the future),” Lyons said. “There are notenough credit unions for us to maintain a viable credit unionleague. A small league is not able to handle the diverse needs ofall the different credit unions in Oklahoma.”

Lyons also believes Oklahoma's credit unions will vote in favorof the consolidation on May 13.

The merger proposal formally began last year when credit unionsin each state were notified at their annual league meetings thatthe three leagues were discussing consolidation. On Dec. 17, theboards of the three leagues announced their intention to pursueconsolidation into a single regional organization.

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.

If Arkansas and Oklahoma credit unions vote yes, credit unionexecutives will assume positions on the Cornerstone Credit UnionLeague board of directors with three directors from Arkansas, threedirectors from Oklahoma, and 12 directors from Texas.

Although Texas permits board members to be paid, the board ofthe new league will be unpaid volunteers, its organizers said.

Cornerstone's first Texas directors will include: James S.Tuggle of the $39 million Transtar FCU in Houston; Kenny Harringtonof the $188 million MemberSource CU in Houston; Paul Witheyof the $289 million Texas Bay Area CU in Houston; CarolMurray of the $6 million Express-News FCU in San Antonio; JoBetsyTyler of the $58 million First Central CU in Waco; Paul A. Trylkoof the $612 million Amplify FCU in Austin; Nancy M. Croix Stroud ofthe $42 million First Class American CU in Fort Worth; RobertPeterson of the $87 million One Source FCU in El Paso; James L.Boyd of the $348 million Abilene Teachers FCU in Abilene; Z.Suzanne Chism, of the $14 million Texas Health Resources CU inDallas; Kay Stewart of the $124 million North East Texas CU in LoneStar and Jim Brisendine of the $371 million Resource One CU inDallas.

From Oklahoma, the Cornerstone board members will be: JasonBoesch of the $25 million Oklahoma RE&T Employees CU inOklahoma City; Genia Wilson of the $474 million Oklahoma Central CUin Tulsa and Michael Kloiber of the $2.9 billion Tinker FCU inOklahoma City.

From Arkansas, the Cornerstone board members will be WindyCampbell of the $10 million Electric Cooperatives FCU in LittleRock; Dwayne Ashcraft of the $64 million Arkansas Superior FCU, inWarren, and Allen Brown of the $106 million Mil-Way FCU inTexarkana.

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.