Second Quarter 2006
Sorgatz installed as League Chairman
Carl Sorgatz, CEO of Hawthorne CU in Naperville, was sworn in as chairman of the Illinois Credit Union League during the Annual Convention in April.
Sorgatz is League Director from the Aurora Chapter, a position he has held since 1993. "I look forward to working with and representing the credit unions of Illinois," he said.
Sorgatz said one of his priorities as chairman is to continue to ensure a strong value proposition for Illinois credit unions through the products and services offered by the League and ICUL Service Corp (LSC). He wants to continue to offer top-line products and services to credit unions at a reasonable cost. In addition, Sorgatz wants to build on and expand the current partnerships the Service Corporation has established with Leagues throughout the country.
"I also want us to continue to explore ways of expanding our partnership with Members United Corporate FCU. I believe there are great opportunities for both organizations to 'expand the pie' and for both organizations to benefit from a collaborative effort and share in that expansion," he said. Sorgatz feels the organizations can do more through partnerships than they can individually. "I expect our partners and ourselves to understand that and mutually benefit from it." In addition to benefiting the partnering organizations, credit unions throughout Illinois and the rest of the country will also realize those benefits.
Providing credit unions relief from burdensome regulatory requirements is a top issue for Sorgatz. He says the passage of CURIA is an important step in the right direction. "The bill has key items that will create a more favorable operating environment for credit unions," Sorgatz said. He urges credit unions to get involved with the local, state and federal level political action programs coordinated by the League. "When credit unions are unified and work toward a common goal, we can accomplish anything," he added.
Another issue facing credit unions is serving the underserved and documenting these activities. "The Illinois Credit Union Foundation has a grant program called Financial Independence and Revitalization Effort (FIRE) Grants, which is designed to help credit unions of all sizes reach out to the unbanked," said Sorgatz. The FIRE Grants are available for projects including financial literacy programs, installation of an ATM or establishment of a branch in a low-income area, and implementation of an Individual Development Accounts (IDA) program.
The continuous attacks by banker associations are a threat to credit unions and require a proactive response. "Bankers are trying to define who we are (as credit unions) and who we can serve. We need to define our own future as credit unions and not let bankers do that for us," Sorgatz said. "Credit unions can successfully address banker attacks by becoming involved in politics at the grassroots level, which means getting to know local legislators and making sure they are aware of the powerful impact credit unions have in the lives of their constituents."
In addition to political involvement, Sorgatz says credit unions have an identity crisis in the marketplace. “We need to deliver a clearer image of ourselves as credit unions. How we help people of all income levels achieve their goals and dreams. How we are good corporate citizens and give back to the communities we serve through volunteerism and donations. How we proved service at a level unmatched by others in the financial community. But we need to “Walk the Walk” not just “Talk the Talk” when it comes to community involvement. Communicating those positive images of credit unions statewide is something I am hoping we can accomplish cooperatively,” he said.
Finally, Sorgatz feels it is important to preserve the dual chartering system because it provides impetus and new ideas, and he wants to give credit unions the ability to grow through non-merger means.