The session will begin with the reasons we have seen credit unions merge including geographic expansion, broadening and/or diversifying the field of membership, acquiring a state versus Federal charter, diversifying the balance sheet, acquiring specific expertise, improving their technology, lowering costs, fulfilling mission, or keeping a competitor out of their market. We will then provide an overall summary of who the acquiring and merging in credit unions have been over the most recent few years including size, location, and financial performance metrics. We next address the accounting and regulatory implications of mergers including what makes the merger accretive or dilutive to income, including the discount on loans and the core deposit intangible. We will summarize the mergers we have seen that resulted in goodwill or a bargain purchase and why. We will briefly touch on how to go about the merger including assessing cultural fit and having a “high level” valuation performed in advance.
The session will include important dos, don’ts and what to watch out for.
Attendees will come away from the session with an understanding of:
Why credit unions have merged
Who the acquiring and merging in credit unions have been over the most recent few years
What makes the transaction accretive or dilutive to earnings and regulatory capital
How to go about engaging in a merger, including best practices
President and Co-founder,
Wilary Winn LLC
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