Understanding the current Merger & Acquisition landscape is vital for industry leaders and journalists. To aid in your ongoing coverage, ALM First experts are pleased to provide our insights regarding the latest trends. Please feel free to utilize any of the "ready-to-use" quotes below in your upcoming stories or reach out to us at pr@almfirst.com to schedule interviews.
ALM First Insights on Current Trends
- Growth in larger credit unions continues to exponentially outpace smaller peer groups. From 2008 through Q1 2026, the number of credit unions in the $5B - $9.99B category increased by nearly 843% and >$10B by over 700% vs. a 67% decrease in credit unions <$50M and nearly $25% decline in credit unions between $50M - $99.9M.
- While the number of institutions has fallen from 7,964 to 4,333, total credit union industry assets have grown from $82 billion in 2008 to $2.51 trillion as of Q1 2026. Most of the growth is concentrated in institutions larger than $3B in assets.
- Despite an intensified need for scale and desire to retain relevance/compete effectively driving many transactions, a common motivation for pursuing a merger remains a CEO's retirement or a lack of strategic succession planning.
- Larger, strategic mergers are on the rise, often with the focus on “partnering as opposed to competing.” This is giving rise to new structural arrangements, specifically in naming, branding and leadership areas, to help move complex negotiations to yes.
Outlook for the Remainder of 2026 and Beyond
Looking ahead, it is anticipated that consolidation activities among market participants will remain heightened. Key themes expected to persist include:
- Additional large-scale merger-of-equals transactions
- An increased focus on technology-driven scalability
- A greater emphasis on strategic rather than purely financial merger rationales
- Expansion into new geographic markets
- Continued pressure on smaller institutions that lack scale
- An enhanced focus by regulators on demonstrable value provided to members
While merger activity itself is not a novel phenomenon, the profile of the institutions involved is evolving. The industry is increasingly witnessing collaborations between healthy, growth-oriented credit unions seeking to accelerate strategic objectives and institutions aiming to address financial challenges.
The landscape of credit union mergers has shifted from a historically driven necessity to one primarily motivated by strategic opportunities. Since the end of 2025, the industry has seen ongoing large-scale consolidations among stable institutions seeking to achieve greater scale, improve technological capabilities, expand market reach, and enhance long-term member value propositions. Boards across the industry are progressively perceiving merger activities as proactive strategic measures rather than merely reactive responses to financial difficulties.
Ready-to-Use Quotes
“Today, more CEOs are proactively seeking merger opportunities to compete effectively in the rapidly changing financial services landscape, expand into new geographic markets, and remain relevant for the long-term,” says Brandon Pelletier, Managing Director, ALM First.
“Members’ initial questions regarding mergers typically revolve around what will happen to the existing employees they know and trust,” says David Ritter, Managing Director, ALM First. “It’s important to communicate that the continuing organization has a plan to retain the people members rely on for their financial needs.”
“While we expect to see more credit union-bank transactions, the first step in evaluating any potential M&A opportunity is defining your institution’s strategic priorities,” says Doug Hillhouse, Managing Director (Bank Acquisitions), ALM First. “How would a bank acquisition align (or not align) with your objectives? Would it expand your geographic presence or provide the infrastructure needed to serve both commercial and retail consumers?”
“An M&A integration strategy serves as a cohesive roadmap that empowers the combined organization to move forward confidently, execute critical actions seamlessly, and lay the groundwork for long-term value creation,” says John Morada, Managing Director, Integration, ALM First. “Without this intentional and structured approach, realizing the synergies or benefits that propelled the deal forward may prove elusive.”
“A poorly communicated merger can damage the brand’s reputation, erode trust, and create negative media coverage. Maintaining a positive image throughout the process is critical for long-term success,” says Jessica Richardson-Isenegger, Managing Director, Communications, ALM First