Cornerstone Credit Union League President/CEO Caroline Willard debunked several credit union myths with indisputable facts in an article published in CUInsight. Willard notes that despite bank claims to the contrary, the credit union system provides billions in taxes and consumer savings, money that helps promote financial well-being for all.

Responding to questions about bank sales to credit unions, Willard notes that these transactions are voluntary on the part of the bank and are made because the bank believes the credit union will be a successful partner.

“Community banks are very open to and often seek credit union purchasers, especially when their big brother banks show no interest…According to a 2019 CUNA Bank Purchase Study, bank owners have various reasons for selling to a credit union, which include better cultural fit, likelihood of employee retention, and preservation of a community service legacy,” she writes. “A bank selling to a credit union is an efficient way to enhance brick-and-mortar access or add commercial lending expertise. Each entity stands to also gain immediate proficiency in areas outside their core expertise, such as community outreach.

“A community bank’s original purpose is to channel loans back into the communities it serves. If a bank closes its doors with no buyers, that community is left unserved and unbanked, creating a financial desert. A credit union acquisition is an outstanding solution for that entire community,” Willard added. “The fact is, what’s good for business is good for the community and employees.”

She also highlights that many banks actively seek buyers, including credit unions, and that both staff and incoming talent can benefit from a bank sale to a credit union.