The $27 billion State Employees' Credit Union told the Carolinas Credit Union League Feb. 3 it will not renew itsmembership in the league or CUNA this year.

According to a Feb. 5 email from CUNA Executive Vice Presidentof System Relations Susan Newton to league presidents that wasobtained by Credit Union Times, SECU President Jim Blainetold the trade he disaffiliated over the dual membershiprequirement that requires CUNA membership to belong to affiliatedstate leagues.

“(CCUL CEO) John Radebaugh and (CUNA President/CEO) Bill Cheneyand others have had numerous conversations and exchanges with Jimover the past few months, and we of course had hoped for adifferent outcome,” Newton said in the email.

Cheney told Credit Union Times he's disappointed anytime a credit union disaffiliates with a league and CUNA.

Of SECU, he said, “They have been involved in almost everyaspect of the credit union movement. We will miss their leadership,support and involvement and hope that this is a temporarysituation.”

Despite the disaffiliation, CUNA does not appear willing toreconsider its membership structure, according to a Feb. 4 emailfrom Cheney that contained talking points on the topic for CUNA andCUNA Strategic Services board members.

“This dual membership requirement has been reviewed andconfirmed by CUNA members over the years, as part of the periodic'renewal review' process conducted by a CUNA committee of creditunions and leagues,” Cheney wrote in the email.

“CUNA believes that membership in both the national and stateorganizations (for each credit union's state) is the optimumarrangement for maximizing credit unions' advocacy effectiveness,at both the federal and state levels,” he added.

However, Cheney added that CUNA is continuing to work to addressSECU's concerns – within reason, given CUNA's current structure andbylaws – in hopes that the credit union will reconsider itsposition in the near future.

Blaine was not immediately available for comment but agreed tospeak with Credit Union Times on Monday.

Blaine told Credit Union Times in August 2013 he hadpreviously considered disaffiliating from CUNA and the CCUL over differences inopinion over legislative priorities. At the time, hecriticized the trade for failing to advance supplemental capitallegislation on Capitol Hill.

“How do you go to Congress and say you'd like to do somethingthat increase safety and soundness, and they won't buy it?” hesaid. “I find that astounding, that the trade associations and eventhe regulator would say that, and Congress would respond, 'no, wedon't want that.' There's something wrong, if that's truly where weare.”

Because of its state charter, he said SECU would not transitionto NAFCU like fellow big credit unions Navy Federal Credit Unionand Pentagon Federal Credit Union did when they left theorganization.

The South Carolina Credit Union League and North CarolinaCredit Union League mergedto form the Carolinas Credit Union League effective Jan. 1,2014.

Cheney also said he was focused on hosting the largest annualcredit union event, CUNA's Governmental AffairsConference, Feb. 24 – 27 in Washington, This year's GAC isnearing record attendance levels, he said.