Whole-Bank Acquisitions by Credit Unions Remain Robust in 2025
Idaho credit union to acquire Montana bank for geographical expansion
In the world of banking, credit unions continue to make a significant impact, particularly in the area of mergers and acquisitions (M&A). As of late July 2025, there have been at least 10 whole-bank acquisitions announced by credit unions, including notable deals like San Francisco FCU's acquisition of Summit Bank. This pace is slightly behind the record-breaking 2024, when 12 deals had been announced by the same point and 22 total for the year—the highest ever recorded.
Pace and Volume
While the pace in 2025 is not as rapid as 2024, the number of credit union-bank deals is still elevated compared to historical norms. The trend reflects a strategic pivot among large credit unions toward inorganic growth through acquisition, with a clear acceleration since 2022. However, 2025 is on track to fall short of 2024’s record, though it remains well above the 2022 peak of 16 deals.
Comparison to Previous Years
The year 2024 marked a significant acceleration in this trend, with credit unions completing 21 whole-bank acquisitions, accounting for 17% of all bank acquisitions that year and setting new highs for both the number of transactions and total assets acquired (over $10.9 billion). Prior to 2024, the previous high was 16 deals in 2022, indicating that 2024 represented a significant shift. The recent years represent a dramatic shift from earlier periods, when such deals were much less common.
Strategic Drivers
Credit unions are increasingly using bank acquisitions as a growth strategy, recognizing that such deals can rapidly expand their member bases, assets, and geographic reach—sometimes more effectively than traditional credit union mergers. This trend reflects growing sophistication in credit unions’ strategic thinking, as well as increased willingness among community banks to consider credit unions as viable buyers. Larger credit unions are especially active—most acquisitions involve billion-dollar credit unions purchasing smaller, community-focused banks.
Industry Reaction and Concerns
The industry views these acquisitions as a sign of credit union strength and adaptability, with leaders describing them as “mission-forward” steps that align with long-term visions. However, some banking groups, such as the Independent Community Bankers of America (ICBA), express concern about the consolidation of the financial services industry and the loss of taxpaying community banks to tax-exempt credit unions.
Summary Table: Year-on-Year Comparison
| Year | Number of Whole-Bank Acquisitions | Notes | |------|-----------------------------------|-----------------------------------------------------| | 2022 | 16 | Previous record | | 2023 | Not reported (assumed <16) | Likely below 2022 level | | 2024 | 22 | Record high, over $10.9B in assets acquired | | 2025 | 10+ (projected 12–15) | Slightly behind 2024, still elevated vs. history |
Conclusion
In 2025, whole-bank acquisitions by credit unions continue at a robust pace, though slightly behind the record-setting year of 2024. The trend reflects a strategic pivot among large credit unions toward inorganic growth through acquisition, with a clear acceleration since 2022. While the growth rate may have peaked, credit unions remain a significant force in bank M&A, reshaping the competitive landscape of community banking.
One such example is Frontier Credit Union's acquisition of First Citizens Bank of Butte, marking its first expansion into Montana. The transaction is set to close by the end of 2025 and would be the sixth whole-bank purchase by a credit union this year. The ICBA has expressed rancor towards bank acquisitions by credit unions, arguing that their tax exemption allows for a higher purchase price for small or struggling banks. ICBA CEO Rebeca Romero Rainey called for policymaker action regarding the increasing criticism of credit union tax and regulatory exemptions.
business growth is being facilitated by the increased number of acquisitions in the banking-and-insurance industry, with credit unions playing a significant role in this trend
finance experts are predicting that the pace of bank-credit union mergers and acquisitions (M&A) may have peaked in 2024, but remain elevated compared to historical norms in 2025, changing the competitive landscape of community banking.
