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NCUA Releases a New Guide to Mergers
Tuesday, May 27, 2014 8:55 AM

Credit unions considering a merger now have a new resource to assist in navigating that process, a brochure entitled, “Truth in Mergers: A Guide for Merging Credit Unions,” from the National Credit Union Administration’s Office of Small Credit Union Initiatives. The new brochure is available online here.

NCUA works to ensure that credit unions of all types can continue to thrive and serve their members, but the agency recognizes credit unions in some instances may need to merge. The “Truth in Mergers” brochure provides a framework for credit union managers and directors to begin discussions about the future direction of a credit union.

“Every strategic plan should include contingencies, including when a merger is worth considering,” OSCUI Director William Myers said. “The critical first step is recognizing the early signs that a credit union’s long-term viability may be at risk. 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.”

“Truth in Mergers” incorporates the lessons learned from a review of more than 430 mergers over an 18-month period. 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.

Helpful Resources: While the Cornerstone Credit Union League and Credit Union Resources do not promote nor encourage credit union mergers, they do understand that it is a choice for some credit unions. And credit unions seeking assistance with this process often turn to their league for help; therefore, Cornerstone and Resources have developed a program to provide assistance for credit unions seeking partnerships through which they intend to pursue a merger.

For information, please contact your League Representative.  Additionally, you may contact Mike Delker, Cornerstone’s senior vice president of Credit Union Relations, at (800) 442-5762, ext. 6826, or Dean Borland, Resources’ assistant vice president, at (800) 442-5762, ext. 6627.