Report: More credit union M&A deals failing as acquisitions increase

As credit union mergers and acquisitions have increased, so have terminations of announced transactions, according to a recent report.

New Report: According to a report in Tyfone citing S&P Global Market Intelligence data, five M&A deals in which a credit union would have been the acquirer failed in 2024, including one transaction involving a bank seller. The report cites the impact of regulatory hangups, changes in the timeline to regulatory approval, member or board member sentiment, and core mission differences.

Latest Acquisition: Following the first acquisition of a community bank by a tax-exempt credit union this year—featuring a controversial credit union and the first such deal in California—ICBA said the deal demands a policy response. In a national news release, ICBA said the growing skepticism of credit unions’ tax and regulatory exemptions must evolve into policymaker action.

Increased Attention: The problem of credit union acquisitions of community banks has received increased attention from policymakers, including from the FDIC, which last year approved a statement of policy on bank mergers that explicitly states that additional scrutiny may be needed for deals involving credit unions.

ICBA View: ICBA’s “Repair, Reform, and Thrive” plan and recent open letter to the 119th Congress urge policymakers to use the current debate over tax reform to address credit unions’ tax and regulatory advantages. In a recent blog post, ICBA Past Chairman Brad Bolton said the momentum for policy change is growing as credit unions stray from their founding mission.

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