Record Number of Credit Union-Bank Deals Expected in 2022

2022 is shaping up to be another record-breaking year for credit union acquisitions of banks.

The total assets of banks sold to credit unions reached a high of $5.89 billion in 2021, up from $3.93 billion in 2019, while the deal count of 13 fell just short of the all-time high of 14 in 2019. Charles McQueen, president and CEO of McQueen Financial Advisors, said he expects between 15 and 20 such deals this year.

Michael Bell, partner and co-leader of the financial institutions practice group at law firm Honigman LLP who has worked on more than 40 credit union acquisitions of banks, said in an interview that he expects at least 20 announcements in 2022.

A final rule from the National Credit Union Administration expanding the number of credit unions that can access secondary capital came into effect on Jan. 1 and could also help drive more bank acquisitions in 2022, McQueen said.

The adviser said he has seen an increase in credit unions considering taking on subordinated debt so they have cash on hand when they find a bank or other entity they want to buy.

"The secondary capital thing is a bit of a game changer," he said. "That's going to be really interesting for this landscape."

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