Credit Union Digest: 10 to 15 CU banking buying deals in 2018 not ‘crazy at all’

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.


View Full Story

Share this post

Related News

Learn how Skyway Capital Markets can accelerate your growth.