Credit Union Merger Trends: 1999 through April 2004

Over the past 5 ½ years there have been approximately 1,411 mergers. We have compiled these mergers by year and by asset size. (Note the data was assembled at the time of the merger approval-some of the financial data may be slightly different at the actual merger date.)

 
 

Over the past 5 ½ years there have been approximately 1,411 mergers. We have compiled these mergers by year and by asset size. (Note the data was assembled at the time of the merger approval-some of the financial data may be slightly different at the actual merger date.) Click here to view a table with this merger data. For a listing of all credit unions with over $50 million in assets that have merged over the past five years, click here.

The data shows no clear trends. For example in 1999 there were 393 with the lowest total two years later with 230 in 2001. But the number jumped up again in 2003 to 267. Y2K concerns may have contributed to the pace of mergers in 1999.

The rate of mergers (as a percentage of credit unions active at the beginning of the year) has hovered between 2.21% of credit unions in 2002 to 3.53% in 1999. For 2003, total mergers were 2.78% of the number of credit unions year active on January 1 of that year.

So far in 2004 there have been 91 announced mergers, a slightly higher pace than in 2003.

Analyzing the five-year totals of mergers by asset size, there is a slight increase in the proportion occurring in larger asset categories. However this increase may be nothing more than the growth in the average credit union size during this time.

Twenty-one credit unions over $50 million have merged during these five years. This total is only 1.5% of all 1,411 mergers and suggests that larger credit unions prefer to remain independent. The biggest merger to occur in credit union history was the TRW Systems FCU ($490 million) with Western FCU ($479 million).

Callahan’s Peer-to-Peer software contains complete financial information for every credit union. Using this program any credit union can “merge” any other credit union’s data and see what the impact on key ratios would be. For more information on this application or peer, please click here.

 

 

 

June 21, 2004


Comments

 
 
 
  • This article is very interesting. It shows clearly the evolution of mergers.
    Anonymous
     
     
     
  • Margin contraction, competition, and management issues are likely to accelerate the number of mergers. The record will be broken during 2004.
    Anonymous
     
     
     
  • Great article, but part of the table appears to be missing ('03 & '04)
    Anonymous
     
     
     
  • The first hypertext link (click here) to see all mergers in the last five years didn't work for me. The second link (those over $50 mil) did. Anyway, I appreciate the info and like this kind of data for Board and mgmt education as we contemplate the possibility of mergers in our future.
    Anonymous
     
     
     
  • the staff, management and board structure of mergers would be very interesting to understand.
    Anonymous
     
     
     
  • I guess to survive, there is strength in pooling one's resources. Combined efforts, is a good thing!
    Anonymous
     
     
     
  • It's a fact of life, little CU's cannot compete and have outlived their purpose. It is simply a matter of merge or die a slow death.
    Anonymous
     
     
     
  • Creditunion mergers are one of the best ways small creditunions can compete against giant banking corporations.
    Anonymous
     
     
     
  • Thanks for the article
    Anonymous
     
     
     
  • Very interesting !
    Anonymous
     
     
     
  • Very informative article !
    Anonymous