Berger, Hunt address misconceptions about CUs’ bank acquisitions
Contrary to some bank lobbyists’ arguments, the increase in credit unions’ acquisitions of banks is “a strategic decision” – both for credit unions to grow and banks to benefit financially – according to an S&P Global articlefeaturing NAFCU’s Dan Berger and Carrie Hunt. Instead of targeting their displeasure about these acquisitions towards credit unions, bankers should reflect on the shortcomings of their industry and look to their own to understand why banks are selling to credit unions.
“Credit unions want the assets, they want the bank’s customers, especially if it fits in the field of membership, they may want some branch locations,” said NAFCU President and CEO Dan Berger. “A credit union buying a bank, it’s always a strategic decision.”
Credit unions looking to acquire a bank must make a cash offer because of the structural differences between the two institutions. Banks, on the other hand, can offer stock options when looking to acquire another bank, but as well run financial institutions, credit unions have the capacity to make competitive offers.
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