WASHINGTON – Contrary to the perception that the pace of mergers has been increasing, the number of CUs lost to merger in 2015 actually declined, according to new data released by Callahan & Associates.
Callahan’s reported that 211 credit unions disappeared during 2015 due to mergers, a five-year low. Credit unions merged at a rate of 3.3% in 2015, slowing after two quarters. The most credit unions lost to merger in the past 15 years was 331 in 2004, Callahan data shows. There were 254 merged away in 2014, 248 in 2013, 261 in 2012, and 224 in 2011.
“It’s reassuring to see credit union mergers hit a five-year low,” said Callahan Managing Partner Jon Jeffreys. “And, despite the shrinking number of credit unions, the industry’s market share has actually risen and we have hit new record highs in assets, auto loans and more. Consumers continue to trust credit unions as their primary financial institution, and that gives us the momentum we need to succeed in this competitive financial services marketplace.”
Calllahan’s reported that the vast majority of merged credit unions are small. The average asset size in 2015 was $25.6 million. Across the past five years, 90.7% of mergers have resulted in a credit union less than $50 million in assets being absorbed, including 191 of the 211 that were merged in 2015.