WASHINGTON–The national credit union trades are not quite sure what to make of the merger of two long-time credit union foes that joined forces this year.

As of Dec. 1, America's Community Bankers has merged with the American Bankers Association, creating a new, larger ABA.

“As a unified association representing the vast majority of the banking industry, we have a tremendous opportunity. We now have more staff, more ideas, more money and more connections,” ABA President/CEO Ed Yingling stated. “These will help us deliver more to our members for less. And when you can say your position has the support of both large money-center banks and community banks, you've got clout in Washington.”

The new organization maintains the American Bankers Association name but renames ABA's Community Banker Council as America's Community Bankers Council. Ed Yingling holds the top spot at the new ABA while Diane Casey-Landry, president/CEO of the former ACB, now holds the title of executive vice president/chief operating officer of the combined entity. The memberships of both associations approved the merger in October.

ABA Chairman Earl McVicker, chairman, president/CEO of Central Bank and Trust Company in Hutchinson, Kan., stated, “The new ABA will be a unified association that will achieve a broad consensus on industry issues and serve as the advocate for the banking industry.”

ACB Chairman Mark E. Macomber, president/CEO of Litchfield Bancorp in Litchfield, Conn., said the merger was banker-driven. “As the ACB and ABA have become philosophically aligned on many issues, and with the successful mergers of a number of state organizations, it simply makes sense for two great organizations with extensive histories, engaged members and experienced staff to become one great organization–the unquestioned premier banking association in our great industry,” he added.

Not so fast, said Independent Community Bankers of America President/CEO Cam Fine. Though delighted to hear the news, Fine said this merger proves ICBA is “the voice for the nation's community banks,” and that he expected to pick up some members as a result of the merger.

While both organizations said the combination was member-driven, merger talks were kept hush-hush until the announcement this fall. Whereas the deal was surprising in that aspect, this was actually the second go-round between ABA and ACB. Casey-Landry explained the groups had discussed a potential merger about eight years ago but talks fell through on certain issue positions. In particular, ACB has strongly advocated maintaining a separate Office of Thrift Supervision, an issue the ABA had come around on in recent years. While ABA and ACB's positions regarding credit union expansion have been in line, their tactics have not. However, Casey-Landry said they are now.

Credit Union Impact?

“One less voice in the banking industry is fine by us,” NAFCU President/CEO Fred Becker said. “The leadership of the new association will certainly have his hands full as he tries to manage the interests and diverse needs of these two membership groups.”

CUNA President/CEO Dan Mica said he had no illusions about the merger of the groups meaning less anti-credit union rhetoric. “The new ABA resulting from the merger will certainly be the largest, richest and most influential of the surviving national bank trade groups,” Mica noted in an internal memo shared with Credit Union Times. “I was struck, in particular, by the language in the press release announcing the culmination of the merger that was released by the new ABA. In the fourth paragraph, the chairman of the new group stresses the value of 'unity' being an important asset in Washington because 'policymakers do not want to negotiate with a divided industry.' I have held that same view for some time. More ominously, this merger presents credit unions with a serious challenge of a tightly unified and rich adversary; our work is certainly cut out for us.”

Since Mica took the helm at CUNA, he has been interested in merging NAFCU into it.

Re-Organization

ABA and ACB are not initially anticipating lay offs. Fully staffed, ABA has about 340 employees and ACB has 90. Some open positions will likely be eliminated, a spokesperson said. Attrition and reassignment should take care of the rest with some possible early retirements offered.

Some of the key staffing decisions from an internal memo included:

- ACB's Bob Davis will oversee housing and mortgage market policy development, government sponsored enterprises, minority banking, bank fraud and risk management, and mutual institutions. His group will support legislative operations relating to these areas.

- ACB's Bob Schmermund will oversee member relations, membership and sales.

- ACB's Bill Kroll will oversee mortgage solutions, credit card services, capital markets, ABA Business Solutions, commercial lending, and future businesses that call for active management.

- ABA's Dawn Causey will be the general counsel and also oversee state law issues.

- ABA's Floyd Stoner will oversee congressional affairs, grassroots, relations with bank lobbyists, and the American Bankers Insurance Association.

- ABA's Wayne Abernathy will oversee regulatory affairs, economic policy, policy development and compliance.

- ABA's Ginny Dean will oversee communications, publications, press relations, and general ABA marketing.

- ABA's Bob Eady will be CFO and oversee finance, IT, human resources and facilities.

- ABA's Becky Morter will oversee international relations, the Bankers Association for Finance and Trade, and the International Monetary Conference.

- ABA's John Wolff will oversee the Corporation for American Banking, the American Bankers Professional and Fidelity Insurance Company, and the ABA Web page.

- ABA's Doug Adamson will oversee schools, conferences, bank training, and the products he now oversees.

- ABA's Beth Climo will oversee the American Bankers Securities Association.

- ABA's Jeff Owen will oversee the ABA's state association division, political action group, and the America's Community Bankers Council. He will also become chief of staff.

The combined organization encompasses approximately 95% of the assets of the banking industry, totaling $11.5 trillion.

–scooke@cutimes.com

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