“Truth in Mergers” Identifies Best Practices for Merging Credit Unions
ALEXANDRIA, VA (May 23, 2014) -- Credit unions considering a merger now have a new resource to assist in navigating that process, a brochure entitled, “Truth in Mergers: A Guide for Merging Credit Unions,” from the National Credit Union Administration’s Office of Small Credit Union Initiatives. The new brochure is available online here.
NCUA works to ensure that credit unions of all types can continue to thrive and serve their members, but the agency recognizes credit unions in some instances may need to merge. The “Truth in Mergers” brochure provides a framework for credit union managers and directors to begin discussions about the future direction of a credit union.
“Every strategic plan should include contingencies, including when a merger is worth considering,” OSCUI Director William Myers said. “The critical first step is recognizing the early signs that a credit union’s long-term viability may be at risk. A credit union still in sound financial condition has more options when it comes to merger partners and is in a better position to negotiate a contract than a credit union in a deteriorated financial condition.”
“Truth in Mergers” incorporates the lessons learned from a review of more than 430 mergers over an 18-month period. Presented in an easy-to-use format, the brochure is designed to help credit unions considering a merger recognize when that is in the best interest of a credit union and how to negotiate a merger contract that serves members as well as employees.
NCUA’s Office of Small Credit Union Initiatives fosters credit union development and the effective delivery of financial services for small credit unions, minority depository institutions, new credit unions and credit unions with a low-income designation. For additional information, visit the OSCUI website or subscribe to the monthly FOCUS e-newsletter.
NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the U.S. Government, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 96 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. AtMyCreditUnion.gov and Pocket Cents, NCUA also educates the public on consumer protection and financial literacy issues..