Merger Pace Heats Up in First Half of 2013
During the first half of 2013, the NCUA approved 132 credit union mergers, up from 114 mergers approved as of June 30 last year, according to the NCUA’s Insurance Report of Activity.
If the pace continues, the number of mergers completed in 2013 could top 2012’s total of 273 mergers, which was the highest number in six years. Not all NCUA-approved mergers convert into completed mergers, for a variety of reasons.
“With our experience, we have seen the transaction data suggest that there is still reluctance for merger of equals,” he said. “It’s challenging for credit union executives to integrate their business into another credit union. A merger is about integrating cultures as well. It’s not just about assets, liabilities and earnings.”
An interesting trend that surfaced from NCUA’s merger reports is that 66 mergers, or 50% of approved consolidations in the first six months of 2013, occurred in just seven Northeast and Midwest states including Massachusetts, New York, Pennsylvania, Ohio, Michigan, Illinois and Wisconsin.