Merger Mania Decreases Number of Credit Unions, But Grows Average Size

In the first eleven months of 2003, the NCUA approved 301 mergers as larger credit unions looked to expand and the smaller ones generally looked to improve their member service. At the end of the third quarter there were 9,664 federally and privately insured credit unions, a decrease of exactly 300 from September 2002.

 
 

In the first eleven months of 2003, the NCUA approved 301 mergers as larger credit unions looked to expand and the smaller ones generally looked to improve their member service.

At the end of the third quarter there were 9,664 federally and privately insured credit unions, a decrease of exactly 300 from September 2002.

The continuing merger trend, coupled with strong credit union share growth has led to a dramatic increase in the average credit union size. At December 2001, the average credit union held just under $50 million in assets. Not even two years later, the average credit union is now over $64 million in assets.

 

 

 

Jan. 19, 2004


Comments

 
 
 
  • Ouch!
    Anonymous
     
     
     
  • I sincerely hope that any activity in this area is healthy for thr overall real growth of the credit union industry, while 'smaller credit unions', continue their steong growth and continued service to their local areas. I went throught the S/L industry, and beleive me, it was not pretty. That era was greed, let's hope the credit union industry (as strong as we have been as a United front), doesn't fall into the same senario as the 'Banks'
    Anonymous
     
     
     
  • Credit Unions have a significant weakness. There is no easy way to remove non-performing credit unions before the regulators decide that it is time for them to take over. Banks can buy another bank. As a bank's performance wanes, the stock price declines and the buyers step in. We all know credit union's in our local area that are no longer meeting their member's needs. The Board and management choose to remain independent either due to false hopes for a better day or for self-interest. All credit unions share the same last name. It is in our collective best interest to make it easier for credit unions to merge so that every credit union provides the highest level of service and the best value to its members.
    Anonymous
     
     
     
  • Interesting to learn where we are compared to the average.
    Anonymous