The word “merger” can incite a variety of feelings, emotions, and opinions from credit union leaders. Ideally, credit union board and executive team members have steadily been working to build an organization which is financially healthy and contributes positive benefits to its members, community, and employees.
All too often, however, successful credit unions disregard potential mergers, which can result in significant loss of opportunities down the road. In fact, according to the NCUA’s recently released video Credit Union Mergers: Trends and Warning Signs, 47% of merging credit unions had a loss of membership for three years prior to merger, and 54% of merging credit unions operated at a loss for three years before merging.
Herein lies the question: When should you, as a credit union leader, consider a merger that will optimize the value of your financial institution?continue reading »