Why the big Credit Unions will gobble up the smaller ones

Posted: April 6, 2010 in Uncategorized
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The future will continue to bring massive consolidation in the credit union industry. While the peak was 23,000+ in the early 70’s to 7,800 today. Take a look at these breakdowns.

<$5 Million in Asset Size

  • 2,051 number of credit unions which is 26% of total.
  • $4.2 million asset size which is .47% of total credit unions.
  • 1.27 Million members out of 91 Million or 1.39%.

$5 – $20 Million in Asset Size

  • 2,180 number of credit unions which is 28% of total.
  • $23.9 million asset size which is 2.70% of total credit unions.
  • 4.57 million members out of 91 million or 5%.

$20 – $100 Million in Asset Size

  • 2,156 number of credit unions which is 27.6% of total.
  • $99 million asset size which is 11.1% of total credit unions.
  • 14.51 million members out of 91 million or 15.9%.

> $100 Million in Asset Size

  • 1,386 number of credit unions which is 18.4% of total.
  • $759 million asset size which is 85.73% of total credit unions.
  • 70.98 million members out of 91 million or 77.71%.

It is clear that the asset size and number of members favor the larger credit unions, which have been in some respects like their banking brethren. They have been able to offer all the services that the big banks offer and have escaped the bad press.

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