On Friday, Nationwide FCU in Ohio ($587M total assets) announced a proposed merger in which Nationwide Bank ($112M) would distribute $79 million in cash to members if the merger is approved.

This is the first time the value of members' equity has been presented on this scale. The acquisition price is equivalent to 1.25 times Nationwide FCU's book value as of March 31st. By comparison, the average price-to-book value for bank & thrift acquisitions in 2005 was 2.04 according to SNL Securities.

Will this become a new model for future credit union mergers? Time will tell if this kind of structure gains a foothold in the marketplace.

Jay Johnson
Executive Vice President

Articles the Week of June 20th

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''Mortgage'' vs. ''Home Loan''
Inviting credit union members and non-members to apply for a ''home loan'' instead of a mortgage.

Six Key Branding Concepts
Read six key concepts and commentary from a marketing credit union professional that demystify how build a great credit union brand.

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The Wisdom of a One-Page Strategy
How can you help your organization choose a strategy that is both effective and concise? Consider developing a one-page strategy.

Choosing an HSA Business Model
While credit unions may be inclined to adopt a retail business model for HSAs, they may wish to consider developing wholesale capabilities to align themselves with the market opportunity.

Credit Union Auto Market Share Declines in 2006
Auto lending is the one area where credit unions hold a significant share of the market. Find out how credit unions are currently performing and what strategies they've used to increase market share.

Corporates Prosper as the Environment Changes
Corporate credit unions aren't just riding out the shift in liquidity—they've grown market share in both investments and borrowing.

Upcoming Events

June 27: Building a Great Credit Union Brand
We all can recognize great brands, but what does it take to build one? Learn how some credit unions have made branding a significant part of their organizational strategy.

June 28: Health Savings Accounts (HSAs): Is Today the Window of Opportunity for Credit Unions?
As HSAs continue to gain in popularity, a number of ''first mover'' banks and insurers are moving quickly to develop HSA programs.

June 29: Providing Auto Buying Resources for Your Members
According to AutoCount USA, credit unions held 15.3 percent of all auto loans in March 2006.  Learn how credit unions are developing auto buying resources in order to help their members make more informed decisions.

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Insight Of The Week

What do Loan Pricing Strategies, Member Growth with a Focus on SEG Development, and Duration Management have in common?

They are all topics of recent speeches given by members of the Callahan Speakers Bureau. Callahan & Associates has been supplying credit union professionals throughout the country with enlightening industry information for over twenty years. Impress your audience by having a true credit union expert present at your next planning meeting.

Check out biographies, past topics and speeches at our Speakers Bureau site. Contact Sarah Apgar to learn more about Callahan consultants or to give your feedback!