LAS VEGAS — Squeezed in every direction from tight margins to growing online competition and now a "rebuked NCUA," this is hardly an easy time being a credit union director Bruce Jolly told a volunteer gathering today.

"The challenges are everywhere and I'd suspect it's really never been a more difficult period," declared Jolly, a partner in the Washington law firm of Venable LLP, in remarks before the 31st annual National Directors' Convention meeting here this week. For one thing, "the regulatory pressures are not going away and there are constant challenges on field of membership," said Jolly pointing to the ruling last month by a Pennsylvania federal district judge siding with the banking lobby in rejecting a community charter expansion approved by NCUA for Members 1st FCU and others. Apart from this setback, CUs are now finding it hard to compete with virtual competitors grabbing deposit and loan business. "There is ING," said Jolly calling the on-line banking firm "a credit union on steroids." As for conversions to banks, Jolly called the 2006 bank purchase of Nationwide FCU in Columbus, Ohio, which he was involved in, precedent setting for "putting a price on its value and returning equity premium to its members," something that had not been done before on this scale. The Venable partner also maintained that directors find themselves in awkward positions when they vow never to have the CU sold or converted.