Apprehension about where the economy is heading could be one of the factors behind a continued increase in credit union mergers.
Over the past 12months, there has been a net decline of 322 credit unions with a loss of 16 during April, according to CUNA Mutual Group's latest Credit Union Trends report. Through the first four months of 2009, the credit union count declined by 106 institutions, compared to a 91 count decline for the same period in 2008. The industry now has an estimated 7,982 credit unions.
"The combined challenges of a deep economic cycle, a credit and real estate crisis, and the financial drag of continued unknown insurance assessments, will lead many credit unions to actively pursue mutually beneficial merger partners," according to the report.
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CUNA Mutual is forecasting by the end of 2012, there will be 6,624 credit unions based on industry data patterns. By the end of 2015, that figure could drop to 5,566. The total count is dependent on whether there are no "major system shocks and no significant changes to the underlying value of a credit union charter."
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