When news hits that a community bank sells its assets to a credit union, it’s often a win-win situation for the credit union, community bank, and community involved.
“Bank owners have a lot of reasons for selling to a credit union,” says Caroline Willard, president/CEO of the Cornerstone League. “Sometimes that includes a better cultural fit, a likelihood of employee retention, and also preservation of a community legacy. Credit unions oftentimes will keep an institution running and preserve that in the marketplace.”
Credit unions also gain benefits from these transactions, including expanding geographic footprint, diversification of products, and new potential members. There are also strategic benefits, such as economies of scale and preventing competition, Willard says.
In this episode of the CUNA News Podcast, Willard dispels myths and misperceptions about credit unions that bankers often mention. She also discusses the idea of banks selling their assets to credit unions, how often these purchases occur, and how credit unions benefit.
In this episode:
1:45: Myths and misperceptions
5:52: Banks selling their assets to credit unions
10:04: Purchases provide benefits
11:38: Preventing financial deserts
12:48: Other priorities for lawmakers to focus on