Feb. 2, 2004


Comments

 
 
 
  • I am part of a credit union that maybe looking at a merger with a credit union of equal size. I am looking for any and all info that I can get my hands on. Could you please help me with this issue. Please make contact with me at sgudelsky@tds.net or momg5445@wi.rr.com. Thank you so much. I have learned so much from your articles. Saundra
    Anonymous
     
     
     
  • In many markets, credit unions under $100 million in assets will be forced to merge because the larger more efficient credit unions are luring their members over with more convenient services and aggressive marketing; earnings problems then surface until NCUA comes along and sells the credit union out. A government assisted hostile takeover. A few large credit unions are not even interested in mergers with the small fry because Madison Avenue style marketing departments can easily capture the hearts of the smaller credit union's membership thus eliminating the politics of a merger. The elimination of overlap protection and the expansionist policies of the current NCUA reads like a death sentence for smaller credit unions, although they are currently helpful as a tool for lobbying to maintain the larger's tax exemption. The drop in investment yields is also hurting. Chasing loan yields with relaxed underwriting or getting into unfamiliar territory, like business lending, may slow the demise, but it increases the risk to the NCUSIF. We'll be at 5,000 credit unions in less than 5 years. This is not your father's credit union movement. It has changed forever, thanks to economics and big credit union control over NCUA, CUNA, and NAFCU.
    Anonymous
     
     
     
  • like this article. To the point and not alot of filler. Thank you.
    Anonymous
     
     
     
  • Good to hear.
    Anonymous
     
     
     
  • We are a FCU that has consistently been rate a code 1 for the last 10 years. Well capitalized, very low delinquency and charge off rate but this is not going to be enough to save us. At 40 million in assets we find it very hard to compete with the big boys and this article is definately food for thought. V. Smith President Key FCU Texas
    Anonymous