Report: Margins suffering for credit unions that bought banks
But an S&P Global Market Intelligence study also found that membership and deposit growth rates have been stronger for credit unions that have acquired a bank.
Credit unions that have not struck bank deals have better net interest margins than their banking-buying peers, a new study from S&P Global Market Intelligence found.
In the first quarter of 2024, the median NIM for credit unions that have not acquired banks was 3.89%, S&P found. That compared with 3.20% for credit unions that have bought banks and 3.25% for community banks.
Median NIMs between the three groups historically moved largely in line with each other before a divergence that began in 2023.
There have been 12 deals announced this year in which a credit union is buying a bank, which eclipses the 11 struck all of last year.
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