DALLAS — How much faster larger credit unions are growing larger than smaller CUs can be seen in a new analysis by ALM First based on data from the National Credit Union Administration.
The report said the number of credit unions with assets between $5 billion and $9.99 billion increased by more than 750% between 2008 and 2025, while the number of institutions with more than $10 billion in assets rose by more than 600%.
During the same period, the number of credit unions with less than $50 million in assets declined by about 60%, and those with assets between $50 million and $99.9 million fell by about 20%, according to the analysis.
As the CU Daily has been reporting, the overall credit union industry has expanded significantly during the past decade. Total assets grew from $1.22 trillion in 2015 to $2.39 trillion in 2025, with most of the growth concentrated among institutions with more than $3 billion in assets.
‘Mergers of Equals’
ALM First said it is also seeing an acceleration in “mergers of equals” between well-run credit unions with more than $1 billion in assets, pursued as a strategic growth opportunity rather than a defensive measure.
Despite the industry’s increased focus on scale and efficiency, the most common reason for mergers remains leadership succession, particularly the retirement of a chief executive officer or the lack of a strategic succession plan, ALM First said.
The firm also said some credit union executives are increasingly pursuing multiple acquisitions as part of long-term growth strategies, rather than viewing mergers as one-time transactions. Integration planning, the firm said, is increasingly focused on building frameworks and platforms that can support future deals.
Trend to Continue
Several ALM First managing directors offered comment on the trendlines.
- “We expect the trend of larger credit unions merging and increased bank to credit union transactions to continue,” said Brandon Pelletier. “Today, more CEOs are proactively seeking merger opportunities to keep up with the rapidly changing financial services landscape through scale and to remain relevant.”
- David Ritter said larger mergers are increasingly occurring between strong institutions led by younger executives. “It’s a scale game driven by strategic considerations rather than a defensive move as it may have been in years past,” Ritter said.
- Doug Hillhouse said acquiring a bank can offer strategic advantages for credit unions, but institutions must first evaluate how a transaction aligns with their priorities. “For example, institutions may seek to enhance their geographic presence or diversify who they are serving,” Hillhouse said.
- John Morada said developing a clear integration strategy early in the process is essential to maximizing the benefits of a transaction and minimizing risk.
- Jessica Richardson-Isenegger added that communication plays a key role in ensuring successful cultural integration as mergers and organizational changes grow more complex.
