HERSHEY, Pa. — Jim McCormack has been a force to be reckonedwith for more than 40 years in the credit union community, but hehas announced that he will retire this year from his post as CEO of the PennsylvaniaCredit Union Association.

“The marketplace has change so much in 40-plus years, and theeconomy has changed,” McCormack observed in an interview withCredit Union Times at the PCUA's Pennsylvania Credit UnionAssociation CONNECT Conference, held Thursday and Friday in Hershey.

McCormack noted that he had traveled to Erie, Pa. the nightbefore. The town used to be bustling with manufacturing plants, butnow they've all closed down. Still the credit unions there havesurvived by merging and are thriving.

McCormack worked closely with former U.S.Rep. Paul Kanjorski (D-Pa.) on what eventually became H.R.1151, the legislation that granted credit unions community chartersin the wake of their loss in the U.S. Supreme Court to the bankers.

While stating that the legislation was necessary at the time,McCormack added, “It's not that we haven't had a couple of setbackswith that legislation, such as member business lending.” At thetime, he explained, it was a small price to pay.

Lobbying is fundamental to credit unions' future success toensure they get the authorities that they need to prosper,according to McCormack. “It's the number one priority of thetrades. We have to educate our federal and state legislators.There's been large turnover recently.”

As for his retirement, McCormack wants to relax and get healthy.McCormack recently suffered a stroke. “These are tough jobs to stayhealthy in,” he said.

He also plans to increase his exercising and travel. While he'straveled to many places in the world and all over the UnitedStates, there are some places he said he simply “needs to see” withhis wife, Joan. Peru and New Zealand are his top priorities, inaddition to a train trip through the Southwest.

McCormack shared his chief concern for credit unions in thefuture. “As they get larger, they still must adhere to 'peoplehelping people,'” he said. The size of the credit union is not aproblem if they continue to do just that, he added.

Right now, McCormack said the median size credit union inPennsylvania is $14 million in assets, but he expects that couldreach $100 million median in the next five years. “Unfortunately[the smaller credit unions] will get gobbled up, not through theirown fault, but through the economy,” he explained.

McCormack said the smaller credit unions are particularly adeptat living the “people helping people” philosophy “but they don'thave the tools the members need.”

However, McCormack is very optimistic about the future of creditunions. “By continuing the job they're doing, I think they're goingto double their market share in the next five years,” hepredicted.

He continued, “The biggest differentiator going forward in thefuture is marketing. And iBelong (PCUA's cooperative advertising campaign) addressesjust that. Everyone has access to the same technology.”

McCormack's daughter, Elizabeth, will continue to carry thecredit union flag in the family. She is employed at Members1^st FCU of Mechanicsburg, Pa.

Dollar Associates, headed by the former NCUA Chairman DennisDollar, is performing the CEO search. A decision on a successor hasnot yet been made.

McCormack has been with the PCUA for 32 years. He began hiscredit union career in 1971, holding various positions with CUNAMutual Group.