By Ray Birch
DETROIT—After a record-breaking 2024, credit union purchases of banks have shown no signs of retreat in 2025—despite an uneven start to the year and new hurdles from Washington.
According to Michael Bell, a partner and chair of the Financial Institutions Practice Group at Honigman, LLP, the market for these cross-industry mergers remains healthy and increasingly sophisticated heading into 2026.
“There is still a decent amount of activity in the pipeline,” Bell told CUToday.info. “We’ll likely finish this year somewhere in the twenties in total deals, which keeps us close to record pace. It’s been a strong year for us in the credit union/bank world.”
The pace comes on the heels of 2024’s record 22 transactions, the highest annual total since credit unions began acquiring banks in earnest more than a decade ago.
Bell, the pioneer of credit union purchases of banks, described 2025 as a “tale of two halves.” The first few months were marked by what he called “odd times”—a mix of political turbulence in Washington, NCUA staff reductions, and perceptions of regulatory delay due to smaller staffs that caused some institutions to hesitate.
Slowdown Issues Gone
But that slowdown didn’t last.
“At the tail end of 2024 and into early 2025, we did see some slowdown issues,” Bell said. “But those are past. I’ve recently closed two transactions within six months of announcement—the fastest ever. The NCUA, FDIC, and OCC have all become more efficient.”
Bell, who has been part of more than 75 whole-bank agreements plus additional bank branch purchases, said there remains “dated information” in the marketplace about long regulatory delays that no longer reflects reality.
“What was true at one point isn’t true now,” he noted, adding that increased deal flow has led to better coordination among examiners and more predictable timelines.
This year also saw the first-ever credit union purchase of a bank in California—a milestone that Bell said “opens the door for more activity” in the West. His firm, which has facilitated the vast majority of CU-bank transactions nationally, is also working to bring similar deals to new states.
Deal sizes have grown as larger credit unions enter the space.
“Each year, there’s at least a slight increase,” Bell said. “Assets grow, inflation plays a role, and now we’re seeing bigger credit unions come to the table, which allows for larger banks to be acquired. But this will always make the most sense in that $2-billion-and-under space.”
The market, however, wasn’t without headwinds. A new law in Washington State effectively restricted credit unions from purchasing banks, which Bell called “a silly law” that has chilled what had been an active state for these deals.
“We probably lost one to three transactions that would have happened in a free marketplace,” he said. “That’s the impact of political interference.”
Bankers Vocal
Michael Bell
Bell said 2025 also brought renewed rhetoric from the banking lobby arguing that credit unions engaging in bank acquisitions should lose their tax exemption or that such deals distort credit unions’ “mission.”
“Those are conclusory statements without any factual support,” he argued. “Size doesn’t change a nonprofit’s mission—the Red Cross isn’t suddenly for-profit because it got big. And when a credit union acquires a bank, it’s simply acquiring branches, deposits, and loans—it remains a credit union doing exactly what it did before.”
Bell predicted those talking points will eventually “run out of gas” as data and deal outcomes continue to disprove them.
Despite the noise, Bell sees 2026 shaping up as another strong year—perhaps as busy as 2024’s record.
“Everything out of our control—government, politics, regulators—looks stable,” he said. “Regulatory staffing issues have been addressed, agencies have become more efficient, and I think the marketplace will be full of both buyers and sellers.”
He expects another 20-plus transactions next year, with gradual increases in deal size as larger credit unions continue to participate.
For credit unions considering a bank acquisition, Bell offered simple advice: plan ahead.
“If you’re even thinking about it, take an offensive approach,” he said. “Do the legwork early—set your parameters and get your people ready to evaluate opportunities. The market moves fast, and those who are prepared will be able to react. There’s no question opportunities will arise in 2026.”