Consolidations

As they continue to protest credit union mergers, banks are set to reap the benefits from a deal that will create an institution one-third the size of the entire CU industry.

BB&T is buying SunTrust Banks, creating a $442 billion-asset institution. Credit unions are hopeful the mega merger will present an opening to pick up new business.

Members at Star Credit Union, which has just $32,000 in assets, have approved the proposed merger into Summit.

In 2017, the National Credit Union Administration board approved provisions to make mergers more transparent. But one of those changes has become a casualty of the government closure.

The Lake Mary, Fla., credit union has agreed to buy Fidelity Bank of Florida, which the SBA designated as a certified lender in 2017.

The $1.9 billion-asset Schools Financial Credit Union has plans to merge into SchoolsFirst, which is already the largest credit union in California.

"I don't and I never would discount the European banks," Citigroup Chief Executive Officer Michael Corbat said in an interview at the World Economic Forum in Davos. "Don't overestimate the U.S. banks' position, and don't underestimate the European banks' position."

Bank of America Chief Executive Officer Brian Moynihan predicted another round of consolidation in the U.S. that could lead to the emergence of a new competitor.

Coast-Tel Federal Credit Union is merging into Bay Federal Credit Union on Feb. 1 with the integration expected to be completed by midyear.

A number of healthy credit unions have undertaken “mergers of equals” to bolster long-term prospects. But those institutions are opening themselves up to unique risks and challenges as a result.