NCUA Goes Behind the Scenes of 430 Mergers
The NCUA’s Office of Small Credit Union Initiatives released the “Truth in Mergers” brochure on Friday, which provides guidance for credit union managers when discussing the future of their institution.
“Presented in an easy-to-use format, the brochure is designed to help credit unions considering a merger recognize when that is in the best interest of a credit union and how to negotiate a merger contract that serves members as well as employees,” the NCUA said in a release.
OSCUI Director William Myers said every credit union’s strategic plan should include contingencies, including when a merger is worth considering.
“The critical first step is recognizing the early signs that a credit union’s long-term viability may be at risk,” Myers said.
He added, “A credit union still in sound financial condition has more options when it comes to merger partners and is in a better position to negotiate a contract than a credit union in a deteriorated financial condition.”