The issue has nothing to do with the asset size of the credit union but actual quality service and understanding of and ties to the community or field of membership it serves. For smaller credit unions, it particularly helps to have the support of the sponsor for space and other resources. But when they're creative and resourceful, credit unions can accomplish great things even without those things. I caught up recently with Gregg Stockdale of 1st Valley FCU who's doing just that at $37 million in assets.

Even SAFE CU CEO Henry Wirz, who often writes about the downfall of the small credit union, agreed on that point, though he still contends a larger credit union can do it more efficiently. I concede the point but is efficiency always better? It goes back to what you consider service. McDonald's serves decent coffee efficiently, but Starbucks is still booming at twice the cost. Many local coffee houses are faring well in the shadows of these two giants, too.

To Henry's point though, a decade ago there were more than 10,000 credit unions. As of Aug. 31 there are less than 7,200, according to a CUNA compilation of NCUA figures. In the last 12 months, the number of credit unions declined 3.6%, yet assets grew by 7.5% and membership grew by 2.7%. The average size of a credit union has reached $144 million in assets, up from $57 million 10 years ago. These dramatic swings are in large part due to consolidation brought on by constricted lending, ever-increasing compliance burdens, CEO retirements, scale and various other factors. It's a trend that experts see continuing for some time to come.