By Ray Birch
LAKE TAPPS, Wash.—An analysis of third-quarter 2025 credit-union mergers reveals a market that looks steady on the surface but is rapidly consolidating in scale. While merger volumes remained broadly consistent with earlier quarters, the size of the institutions being absorbed surged dramatically, according to new analysis from CEO Advisory Group.
The NCUA approved 41 mergers in Q3 2025—more than the 35 approved in the first quarter but fewer than the 45 cleared in Q2. Yet the combined assets of the acquired credit unions soared to $34 billion, a sharp jump from $5.6 billion in the second quarter and just $2.4 billion in Q1. The mean asset size of merged institutions reached $834 million, while the median stood at $17 million, underscoring the outsized impact of a handful of large deals.
“Overall merger activity remains lower than last year, with 80 mergers approved so far in 2025 compared with 121 at the same point in 2024,” explained Glenn Christensen, president of CEO Advisory Group. “But asset totals tell a very different story: the $34 billion absorbed in Q3 alone nearly matches the $35 billion in total assets acquired across all credit-union mergers from 2022 through 2024, signaling a sharp acceleration in large-scale consolidation.”
Large Credit Union Acquirers
There were three very large mergers-of-equals among credit unions this quarter: $17-billion First Technology Credit Union, San Jose, Calif., merged into $12.7-billion Digital Credit Union, Marlborough, Mass.. In Lenexa, Kans., $5.3-billion CommunityAmerica Credit Union merged into $3.5-billion Unify Financial Credit Union. Also $9.5-billion Wings Financial CU, Apple Valley, Minn., merged with $10.3-billion Ent Credit Union, Colorado Springs, Colo.
The median asset size of the continuing credit unions is $275 million, and the mean is $1.3 billion. Fourteen of the acquiring credit unions have assets exceeding $1 billion. Combined, the acquiring credit unions had $55.4 billion in assets.
At the other end of the spectrum, there are six credit union acquirers with assets below $1-million for Q3, and five had assets greater than $250 million. The acquired credit unions have a median of $17 million in assets and a mean of $834 million, Christensen said. The smallest credit union merger partner is A M E Church Credit Union in Metairie, La., with assets of $67,755.
Reasons for Credit Union Mergers
“When seeking regulatory approval, credit unions are required to cite the reason for the merger,” reminded Christensen.
As shown in the chart (below), 29 of the 41 transactions listed expanded services as the reason for the merger. However, 17% cited poor financial condition.
“The financial performance of the acquired credit unions could be characterized as mixed,” stated Christensen. “The median net worth ratio of the merging credit unions is 11.86%, indicating good capitalization. However, five credit unions have net worth ratios below 7.0%, which is considered undercapitalized.”
Other financial performance indicators present a similarly mixed view, Christensen said. The delinquent loans-to-total loans ratio averages 1.98%. The mean return-on-assets (ROA) was negative 0.23% in the last 12 months, and the median was 0.11%.
“More concerning was that almost half of the merging credit unions (18 out of 41) reported negative earnings in the last 12 months,” Christensen said.
Below is a chart of the NCUA merger approvals for Q3 2025:
Credit Union Acquisitions of Banks
Bank consolidation proceeded at a faster pace than credit union mergers, with a total of 52 bank acquisitions announced in the third quarter of 2025, a four-year high. The total deal value of $16.63 billion is also the largest since Q4 2021. During this time, credit unions acquired four banks. In total, the banks being acquired by credit unions had assets of $1.9 billion, up slightly from $1.5 billion acquired in bank-to-credit-union mergers in the second quarter, Christensen said.
In Nevada, $1.4-billion Meadows Bank was acquired by $23-billion America First Federal Credit Union, Riverdale, Utah.
“This was the largest bank acquired by a credit union last quarter. The smallest was $96.5 million Williamsville State Bank and Trust, Springfield, Ill., purchased by $475-million Land of Lincoln Credit Union, Decatur, Ill.,” Christensen said.
The deal terms were announced in just one credit union bank acquisition, with OnPath Federal Credit Union, Metairie, La., acquiring $187-million Heritage Bank of St. Tammany, Covington, La., for a price to tangible book of 150.51%. The acquisition brings OnPath FCU’s assets to $1.3-billion. Among all bank acquisitions reporting deal terms, the average price/tangible book was 148%, Christensen said
For all banks acquired by credit unions, the average ROAA was 1.03%.
Following is a deal summary of the credit union acquisitions of banks and a summary of all bank transactions:
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