Why Credit Unions Are Buying For-Profit Banks

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Credit unions, not-for-profit member-owned financial institutions that accept deposits, make loans, and provide a wide array of financial services, have been scooping up for-profit banks at a record pace.

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Through June 4th, twelve U.S. banks have announced plans to sell $7.21 billion in assets to credit unions, surpassing the previous record of $5.15 billion in 2022.

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Credit unions are scooping up banks to:

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• Expand into new geographic areas and grow its membership base
• Obtain specific expertise by offering more products and services
• Diversify its balance sheet

Credit Unions are also one of the only realistic buyers in today’s environment—able to pay in cash for the bank’s assets and absorb the bank’s balance sheet from a purchase accounting standpoint, per Banking Dive.

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The distinction between credit unions and banks is fading fast with every deal.