Excerpt: U.S. credit unions in 2018 have been buying banks at a pace that ultimately more than double the total number of such deals announced last year…
“I don’t think ten to 15 deal announcements [of this kind] this year is crazy at all,” said Dennis Holthaus, managing director of Skyway Capital Markets. “Strategically, credit unions want to grow, but organic growth is difficult to achieve at a reasonable cost.”
In an interview, Holthaus said there are a number of factors resulting in the increase in frequency of those deals, including community banks of $300 million in assets and less looking to sell but failing to show up on the radar of bigger banks that have a liquid stock to offer.
And more small banks are actually seeking out credit union buys because credit unions pay cash and are often in a financial position to pay competitive multiples for a community bank. Additionally, community bank boards and management teams know that a credit union buyer will treat the bank’s customers and staff in the same way that they treat themselves, Holthaus said.