Credit Union Merger Resources & Guidance

Introduction

Credit unions and community banks continue to consolidate at a rapid pace. This is due in part to shifting member preferences for convenient, digital technology. Nonbanks, neobanks, and Fintechs are increasingly appealing to younger cohorts and those who have been underserved by traditional financial institutions. Smaller credit unions can often lack the resources to level up their technology. Additionally, smaller financial institutions are facing regulatory pressure on fee income that puts a strain on their profitability, while also facing aging executive leadership without succession plans. This confluence of risks leads credit unions to consider merging.

As your credit union, we are committed to helping you through any situation, including a merger or acquisition. We have compiled helpful resources to help you get started on the merger journey. We have the team and resources to support you through the process. Contact us to discuss any questions or unique challenges you are facing.

Member Merger Checklist for Corporate Central

If you are a member of Corporate Central and your credit union is planning to merge, please inform us at your earliest convenience by contacting our Member Experience team at [email protected] or (800) 242-4747. After the merger is communicated to us, our Director of Member Experience will coordinate a call with you to discuss:

Tentative merger date

Current services your credit union is utilizing

Plans for migrating services that will continue after the merger

Considerations and contracts for discontinued services

Reviewing your membership type

Agreements or paperwork Corporate Central will need for the merger

Corporate Central remains committed to supporting your credit union through any situation. As you begin your merger, we are here to assist you and offer guidance, even if you will no longer be utilizing our services.

General Merger Steps*

1Conducting early and continuous due diligence and learning

2Communicate with stakeholders throughout each step of the merger process

3Merging credit union board votes for the merger

4Continuing credit union board votes for the merger

5Initial application submitted to regulators

6Notification sent to both credit unions' members about the merger

7Full due diligence performed by both credit unions

8Voting by membership of the merging credit union

9Voting by membership of the continuing credit union

10Regulators approve merger

11Final due diligence is completed and communicated to both credit unions' memberships, corporate credit union partner, and all other partners affected by the merger

12Merger effective date is set

13Submitting final paperwork including merged financial statements to the regulators

14Conversion of data (on merger effective date or later)

*Merger requirements vary based on state and charter. Please review the merger requirements published by your regulator for specific details, processes, or materials.

Credit Union Merger FAQs

Additional Merger Resources

NCUA Credit Union Merger Resources NAFCU Resources Filene Merger Article To Merge or Not to Merge? CU Minute Blog

Merger Resources

Introduction

Member Merger Checklist for Corporate Central

General Merger Steps*

Credit Union Merger FAQs

Should my credit union merge?

What financial metrics should we evaluate when considering a merger?

What is the most important element of a successful merger?

Should we retain our staff in the merger?

How should the two boards be combined for the merger?

How can we manage the complex process of a merger?

When do we communicate our credit union is merging and who do we notify?

How can I make best use of due diligence resources?

What if we discover a serious concern during due diligence?

What if we uncover other concerns during due diligence?

What steps do I need to take to consolidate products and services?

How do I prepare for the data conversion?

Additional Merger Resources

Need Guidance on Your Merger Journey?