Should we remain independent?
Independence is one path, not the only one. The question for the board is which path will serve your members best over the next ten years.
44%
Of the 41 credit unions merged in the third quarter of 2025, 18 had reported negative earnings over the previous twelve months. Most merging credit unions are not in trouble; a large share are.
Source: NCUA merger approvals, Q3 2025. CEO Advisory Group, Credit Union Merger Analysis: Third Quarter 2025.
The strategic independence test
Glenn Christensen · CEO Advisory Group[Twelve] questions a board can answer in one meeting
The guide sets out what independence requires over the next decade: capital, scale, technology, leadership succession and member growth. It asks the board to score itself honestly, then compares the result with each of the other paths.
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What each path protects, and what it asks.
No path is right for every credit union. A board that has looked at all four can defend whichever it chooses.
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Remain independent
- Protects
- The charter, the name, local governance and the current leadership structure.
- Asks
- Enough earnings and growth to fund technology, talent and succession without help.
-
Merger of equals
- Protects
- A shared say in leadership, board seats and the combined name.
- Asks
- Two cultures and two boards willing to give up some control to gain scale.
-
Join a larger credit union
- Protects
- Members' services, staff careers and the local presence, with more resources behind them.
- Asks
- Choosing the partner carefully, and negotiating what continues locally.
-
Grow by acquisition
- Protects
- Independence, by adding scale through another credit union or a community bank.
- Asks
- Capital, integration capacity and a partner or seller willing to engage.
The analysis behind the question
- Scale Credit Unions Must Evolve to Thrive July 2025
- Approached Does Your Board Governance Provide a Framework for Addressing Mergers? December 2022
- Scale Open Doors To Capital With Subordinated Debt March 2021
- Right partner Important Factors in Assessing a CU Merger June 2020
- Insight 5 Themes - Conversations With CU Leaders April 2020
Weigh it privately before the board discusses it formally.
A first conversation commits your credit union to nothing, including to any path.