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The deals are expanding credit unions’ footprints geographically, while boosting deposits and allowing them to offer a wider array of products. The trend is also turning them into competition for retail banks. While it seems a win-win for the banking public, the deals come with steep challenges post-merger, including concerns over culture, customer retention and compliance.
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“I have seen an absolute explosion on the sell-side,” he says. For Bell — who has been a part of the vast majority of these transactions in recent years — credit unions make attractive buyers because, without equity to offer, the deals are all-cash. In fact, the credit union industry is a net branch opener year-over-year, while the banking industry is a net closer.
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