Why Are CUs Merging?
According to NCUA Region V Director Melinda Love, the most frequent reasons given by small CUs for merging are: * expanded services - 61% of CUs merging nationwide say they want expanded services; * income pressure - 13% of merged CUs attribute mergers to poor financial conditions. Smaller CUs have less reliance on fee income and are more dependant on loan and interest volume. * declining membership base - 8% cite this as their reason * inability to attract new board members and qualified staff - 6% say their unable to obtain officers. * management problems - 2% cite poor management.