Banks Selling to Credit Unions             

CONSIDERATIONS                     

Transaction                    Most always all cash                                                                                                  

                                        Asset purchase and some assets are not allowed to be purchased by CU

Taxes                              Shareholders must pay taxes on transaction                                                    

                                        Holding Company may have a tax liabilit

Staffing                           Typically less staff changes than a bank transaction.                                          

                                        Credit Unions need bank expertise in some areas

Loans                              Some loans cannot be retained by Credit Unions                                                  

                                        Must be sold or paid off prior to closing

Regulatory                     Approval and closing time is often extended 50% or more                                   

                                        Six months often extends to 9 months or more

Pricing                            Credit Unions typically pay a higher price than most bank to bank acquisitions

Culture                           Credit Unions are typically very consumer oriented                                             

              Are often less profit oriented than banks                                                                                                                                                                                                                       

Focus                              Banks typically focus on profitability and balance sheet                                     

                                        Credit Unions most often focus on number of members (customers) and balance sheet

Geography                     Geography is often more important to credit unions than banks

Board Members             Credit Union board members are customarily unpaid