If you ’ re contemplating whether to acquire a bank versus merging with a credit union , we have outlined key considerations such as , strategic goals , culture , financial , legal and regulatory expectations , among others .
Strategic Considerations
Why are credit unions acquiring banks ? A transaction involving a credit union acquiring a bank has several proven beneficial outcomes . Typically , the goals of a credit union merger involve expanding geographical footprint , and adding service and product offerings , while the alternative of purchasing a bank allows for :
• A more transaction-based approach . Banks are purchased for cash with primarily objective price , so much of the emotion surrounding a credit union to credit union merger is eliminated .
• Expanded lines of business , specifically commercial lending . Typically , banks tend to have more mature commercial lending portfolios . Purchasing a bank allows the credit union to absorb the business line and acquire expertise providing an opportunity for growth .
• Diversification of its balance sheet .
• Increased economies of scale , operating efficiencies and synergies .
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Securities offered through Doeren Mayhew Capital Advisors , LLC . Member FINRA / SIPC .
Issue 2 | 2022 VIEWpoint 15