With the recent spate of community bank purchases by credit unions — more than a half-dozen so far in 2018 — a possible new trend is emerging that offers additional ways to capture market share and expand member benefits.
Whereas community banks and credit unions might serve similar consumers, especially in rural communities, the unique ownership structure of the cooperative model can make these unlikely pairings more attractive to both sides.
“Two credit unions considering a merger must weigh the potential benefits and drawbacks for their member-owners, and the movement, in addition to all of the regulatory and financial aspects,” says Chris Howard, senior vice president of Callahan & Associates. “A credit union merger includes literally hundreds or thousands of voices with a legitimate stake in the transaction. With a bank, it’s a more straightforward transaction that ends with customers becoming owners. The fact that a bank acquisition can be simpler is pretty telling about the movement and demonstrates the importance of the cooperative structure.”
Here, Superior Choice Credit Union, LGE Community Credit Union, and Credit Union One share their stories of bank acquisition and power of cooperatives at work.
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