Why are credit unions Expansion fulfills the credit union

philosophy of “people helping

buying banks?
people” by serving the financial needs
of our diverse communities.

Expanding value to local communities

It’s no secret that credit unions are buying banks across
the country, but the reality is that these transactions
are approved by the federal credit union regulator, and
account for a very small percentage of the total bank
sales. And each of these transactions are a win for their
communities.
Communities benefit because credit unions
provide more than $4 billion in indirect
consumer benefits, especially in underserved
areas that often have no other affordable
option for financial services.

Customers benefit by gaining access to Bank investors benefit by receiving cash

strong, responsible, community-focused from the sale rather than a stock-for-stock
financial services, rather than a profit-centric trade.
big bank — or, worse, no financial partner
at all.  

Credit unions purchasing banks ensures that Main Streets across the country continue to thrive

Credit unions aren’t banks (and don’t want to be)

Credit unions are member-owned and democratically controlled financial institutions
that return earnings to their members through fewer and
reduced fees and better interest rates.   

Community avoids
potentially becoming
Former bank a banking desert while
customers become benefitting from products
Credit union a member of a that have lower interest
provides bank democratically-owned, rates, better fees, and more
Bank seeks shareholders with a not-for-profit financial flexible terms.
to sell its taxable cash package institution
assets instead of stock

Credit Union National Association

 By the numbers
Credit unions account for only

+
33 of 2,000 SINCE 2012
BANK PURCHASES
and only 0.3% of bank assets.1

OVER
Between 2004–2018,

1,700+
BANK BRANCH CLOSURES 81%
accounted for 86 new banking of these bank
deserts. purchases were
by credit unions
Filling the gap, that have a

1,600+
specific focus on
low income
families.
CREDIT UNION
BRANCHES OPENED,
ensuring that communities continue
to be served by responsible, local
financial partners.2

The credit union difference What does the Fed think?

Credit unions will continue to provide financial services
focused on the needs of members and their communities, A recent St. Louis Federal
rather than maximizing profits for outside investors and Reserve publication explores
Wall Street. bank acquisitions by not-for-profit
credit unions, concluding: 

“If they can retain enough of

the employees and customers,
these transactions have the
potential to be a win for all the
stakeholders involved.”
1
Sources: FDIC, NCUA, CUNA
2
 CRC, “Bank Branch Closures from 2008-2016: Unequal Impact in America’s Heartland,” Research
N
memo, 2017. Additional data by FDIC, NCUA, and CUNA.
3
 ommunity Development Financial Institutions are certified by the U. S. Treasury Department.
C
Low-Income Designation is determined by the National Credit Union Administration.

THE BOTTOM LINE While making up a fraction of bank purchases,

credit unions continue to be the best financial
partner for communities facing
Credit Union National Association
uncertain economic futures.