Report: CUs Buying Banks Pays Off as Growth Strategy

S&P Global Market Intelligence is reporting that credit unions buying banks as part of a growth strategy appear to be paying off.

Membership and deposit (share) growth at credit unions that acquired banks has outpaced membership and deposit growth of the rest of the industry.

Since the fourth quarter of 2015, membership and deposit growth at credit unions that acquired a bank was 22.7 percent and 45.9 percent, respectively.

For credit unions that did not acquire a bank, membership and deposit growth over the same time period was 15.1 percent and 25.3 percent, respectively.

The study found that only one credit union saw a decline in membership in the quarter following the closing of the acquisition. However, 7 credit unions reported a decline in shares and deposits in the quarter after the acquisition was completed.

Read more.