While it's the mergers that have undoubtedly helped the credit union to grow its membership, Cline said there are other elements that have contributed to Oregonians' expansion. An active business development team that ensures ties with existing SEGs are tight and looks to align with potential employers. The federal credit union has more than 3,000 SEGs with no plans to change its charter to community, Cline said.

"Credit unions were originally employer based, not community. We serve employer groups from all over the state and some national," Cline explained. "We want to hold on to that traditional credit union philosophy and concept."

A former NCUA and Office of Thrift Supervision examiner, Cline, recalls the days in the 1970s when credit union examiners were required to charter at least one credit union each year. Back then, there were more than 20,000 credit unions, he pointed out. Today, there are roughly 9,000. That sharp decline might be tied to the mindset of today's consumers who often want things really fast without considering the consequences of the debt it will carry, Cline believes.

"It isn't about the number of members but the quality of members," he said. "Are members saving on a regular basis? People often wonder why they're always broke. It's because they're not saving, they have numerous credit cards and they're spending too much of their take home pay. Credit unions are supposed to support thrift." The Price of Low-Use Members

Cline said "participating members" can keep credit unions financially sound, but he takes issue with members that are making it hard on everyone else. To that end, Oregonians has begun a campaign to contact 9,000 of its members that have a total of $200,000 in deposits at the credit union. These same members have had no loans and inactive accounts for the past two to three years. It costs the credit union nearly $45,000 each year to maintain this inactivity, Cline said. Rather than escheat them to the state, the credit union has made one last effort to encourage them to be more active, be it through loans or more savings.

"Why keep them?" he asked.

In early November, Oregonians sent a letter to the 9,000 members asking what their plans were: close their accounts or use more products and services. Another letter went out at the end of December. So far, the credit union has closed 2,200 accounts and is looking to shed 6,500 over the next few months. A number of members contacted had totally forgotten they had a relationship with Oregonians with some opting to keep their ties by opening up certificates of deposit. Some had moved out of the area and requested refunds from their closed accounts. Oregonians checks its system each month for inactive accounts. A member is contacted if he or she is over 18, has less than $300 in deposits and no other accounts and has had no activity in the last 18 months.

"Someone may have opened a share account five years ago, opened a car loan, paid it off but never saved along the way," Cline said. "The only way a credit union works is if each of its members commit to saving on a regular basis."

Cline doesn't want Oregonians' actions of dumping inactive members to seem harsh, but financially, they had become a drain.

"Competition is coming from everywhere. We see funds going to the stock market or people are using money to buy cars or a house because it's cheaper to spend their own money than saving or borrowing," Cline said. "We have to go back to the roots of the credit union movement. We have to educate members and staff about what credit unions can do [to promote saving]."

As for further mergers, Cline said the credit union will take a few months off to "regroup and recoup," but remains open to seekers. The focus on maintaining relationships with its current members takes priority over prospects, but introductory calls still go out to potential members. Word of mouth is Oregonians' main form of advertising.

"If your neighbor knows about us and has a good relationship, he's going to tell people," Cline said. "The community knows who we are and our philosophy." –[email protected] Editor's Note: Throughout 2007, Credit Union Times will feature a series of articles on how credit unions are growing their membership. If your credit union has seen impressive growth or is in the midst of an innovative member growth plan, contact Staff Reporter Michelle Samaad at [email protected].