NEW YORK–Credit unions that have not bought banks have better net interest margins than those CUs that have completed acquisitions, according to new study from S&P Global Market Intelligence.
S&P Global is reporting that its analysis of Q1 2024 data found the median NIM for credit unions that have not acquired banks was 3.89%, compared to 3.20% for credit unions that have bought banks and 3.25% for community banks.
As CUToday.info has reported and S&P Global Intelligence has confirmed, it’s been a record year to date for such acquisitions.
Some Positives
The analysis found there are positives in the data for CUs that have bought banks. For example, deposit growth at those CUs has also rivaled and at times even outpaced similar growth rates at community banks.
In addition, the S&P report further found the estimated deal premium for credit union-buying-bank deals announced since 2019 was 52.9%, considerably higher than the 21.8% median for bank-to-bank deals.
Exceeding Peers
Despite paying that premium, credit unions that have purchased banks have exceeded peers on member growth since at least the fourth quarter of 2018, according to S&P.