Given current stagnant growth, aging boards and NCUA assessments, the industry need not be surprised by more small credit union mergers, the CEO of the $1.3 billion Affinity Plus Federal Credit Union, forecast Monday.

"The earnings pressure continues to remain strong and I think the current climate begs capital reform," declared Kyle Markland, head of the St. Paul based CU, second largest in the state which itself is in the process this week of merging a small and troubled competitor, the $37 million Como Northtown Community CU.

Como Northtown, which lost $1.2 million last year and recorded 4.5% net worth, approached Affinity Plus earlier this summer about a merger after NCUA encouragement, said Markland.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.