I am amazed that a distinguished professional credit unionexecutive such as Stuart Perlitsh, CEO at Glendale Area SchoolsFederal Credit Union, in his April 16, 2014, article in CU Timesshows that he truly does not understand the Office of Small CreditUnion Initiatives' purpose, objective or mission.

Surely, one would understand that some small credit unions, byNCUA definition, require developmental assistance in order to gainthe asset level of Mr. Perlitsh's $334 million credit union. I amsure that larger credit unions were at one time in their life cyclesmall, potentially with developmental needs as well.

To that end, Mr. Perlitsh's suggestion that the efforts and workadministered by the OSCUI and in particular that its budgetrequires “top-talent examiners to review these programs, issue ajolly DOR or impose a LUA while insisting they cut expenses inorder to improve what is not working” suggests that other creditunion dues-paying, card-carrying members of the NCUA share hismisguided view of the OSCUI (and that is not true).

As a small credit union in South Texas that experienced “a jollyDOR” and an “imposed LUA” during my start of management oversightof credit union operations in 1998, I must state that if it werenot for the economic development specialist from the OSCUI we verywell might be part of the declining numbers that Mr. Perlitshnoted.

Also, if it were not for grants, which have assisted our creditunion with the development of our VITA program and helped localcollege students obtain a student internship, giving each theopportunity to learn about credit unions and gain experience intheir chosen field of study as well as a possible career choice; orif it were not for the approval and allocation of a CommunityDevelopment Revolving Loan that consummated the purchase andsubsequent relocation of our credit union's operations to a moremeaningful location for improved member service; in my opinion ourcredit union could have been merged. That would have provided thelift referenced by Mr. Perlitsh's billion-dollar credit unionswithout his suggested acquisition fee.

What a disservice (to all credit unions) by highlighting Mr.Perlitsh's article that sheds a negative light on all the good workthat the OSCUI has done over the years to assist the credit unionindustry (net worth restoration plans, new charter assistance andCDFI certification, to name a few).

Now I am not saying that some small credit union managers and/orboards of directors are not to blame for giving up on their creditunion legacy or losing strategic focus of their credit unions,causing the negative slope. But do not use the broad stroke of theproverbial paint brush to opine that the OSCUI is spending too muchon that downward slope. Imagine that more decision-makers thoughtlike Mr. Perlitsh. Would only the large credit unions survive?

What would “Not for Profit, Not for Charity, But for Service”look like? Would our credit union movement stop growing, since inorder to be a large credit union one must first be born and besmall? With small credit unions holding steady at better than 88%of total credit union assets, the question asked would be, “Willservice to rural, low-income areas and SEGs cease?”

We are not alone in needing OSCUI help to continue for thegreater good of our movement and those we serve. While it may havebeen Mr. Perlitsh's premise to slam the OSCUI budget and get theNCUA to think about charging an acquisition fee, please know andunderstand that the OSCUI is relevant and its budget well-utilizedfor the greater good.

Armando A. Martinez

President/CEO

Kingsville Community FCU

Kingsville, Texas