The Ohio Credit Union League board of directors decided Wednesday to allow its 311 credit unions to join the league without requiring them to join CUNA.

The Buckeye State league is the third trade association to reject CUNA's dual membership requirement.

Stan Barnes, who chairs the Ohio league and is president/CEO of the $205 million CSE Federal Credit Union in North Canton, Ohio, said the board decision was based on a combination of factors and that it was the right time to make the decision on membership optionality.

“I really think the CUNA task force report was a masterful piece of work that really laid out the issues. It did a good job of discussing system change and the need for a different look as far as membership was concerned,” Barnes said in a CU Times interview Thursday.

“In addition to that, we wanted to make sure that we had a good handle on what Ohio credit unions were thinking. Not only did we rely on information from the CUNA research study, but the (Ohio league) staff here undertook their own research to see what the Ohio league credit unions felt about membership,” Barnes said. “Clearly the majority felt they should have the choice.”

An Ohio league survey showed 58% of the state's credit unions favored membership choice, while 27% supported dual membership. More than 5% said they wanted a simple nationwide membership model and 8% were not sure.

Of the state's 311 credit unions invited to participate in the survey, 105 filled out the survey for a response rate of nearly 34%. In CUNA's national survey, only 15% of Ohio's credit unions responded. In that survey, nearly 46% of credit unions favored membership choice and nearly 21% wanted to keep the dual membership.

Ohio Credit Union League President/CEO Paul Mercer said despite the decision, the league will continue to recommend CUNA membership to its member credit unions.

“While we're following the path laid out by the task force and choosing membership optionality and choice, we are simultaneously doubling down on our commitment and interdependence with CUNA, which was the second suggestion that the task force had for leagues,” Mercer said. “So we are embracing both of the suggestions that are contained for leagues in the task force report and we are doing so heartily and confidently.”

The task force's second recommendation said that CUNA should enter into agreements with the leagues to commit to practices and procedures in advocacy that promote collaboration, efficiency and joint efforts to establish and advance a system-wide advocacy agency. The recommendation also said that both CUNA and the league promote dual membership by highlighting each other's value proposition and provide financial and other incentives that encourage credit unions to belong to both the league and CUNA.

Mercer also said he is confident that the vast majority of credit unions will continue to remain members of both the league and CUNA.

“The reactions (from CEOs) I've had so far are positive and encouraging of the steps taken here by the league board and simultaneously the credit unions are noting their continued commitment to CUNA and the league,” Mercer said. “When credit unions make that choice, it is evidence that they value the power of the three-tier system and understand the essential aspect of continuing to have the league and CUNA working together.”

On Sept. 18, the CUNA board voted to maintain the longstanding dual membership requirement despite a final recommendation by the CUNA System Structure and Governance Task Force to offer credit unions membership choice in CUNA and/or a league.

What's more, CUNA's own national survey found that nearly 50% of credit unions supported membership choice and 30% backed joint membership.

In September, the Michigan Credit Union League became the first trade association in the nation to allow its credit unions to join the league without joining CUNA. The Michigan league board strongly encouraged credit unions to continue affiliation with both CUNA and the Michigan league. 

On Oct. 16, the board of the League of Southeastern Credit Unions became the second trade association to approve membership choice for its credit unions in Florida and Alabama.

Southeastern league President/CEO Patrick LaPine said 84% of credit unions in both states that responded to the survey voted in favor of choice and 16% of credit unions voted to retain dual membership requirements.

LaPine also said the Southeastern league will be strongly encouraging members to maintain their CUNA membership next year.