A merger changes more than size. It moves the surviving credit union into a new peer group with different performance expectations. This analysis combines the two Call Reports into one pro forma credit union, shows where the combination ranks against its new peers, and identifies the adds, changes and strategies the integration plan must address.
Where the combined credit union ranks in its new peer group.
Whether the merger improves or dilutes efficiency per employee and per member.
What staffing, cost and growth moves close the gap to peers.
Enter both charter numbers to model the combination.
Loading NCUA data coverage...
Income basis: trailing four quarters
Executive Summary
01
Section One
Efficiency Before and After
Surviving, merging and combined credit union against the new peer group median
Side by Side
02
Section Two
Combined Balance Sheet
Statement of financial condition from the NCUA Call Report, in $ thousands
Statement of Financial Condition
Key Ratios
After Merger Accounting
03
Section Three
Where the Combination Ranks
04
Section Four
Pro Forma Trend
As if the two credit unions had been combined in every quarter shown
Single quarter, annualized
05
Section Five
Synergy Scenario
Adjust integration assumptions and see the effect on the combined credit union
Change in combined FTE. Savings use the combined average compensation per FTE.
Reduction in non-compensation operating expense: core, vendors, facilities, duplicate overhead.
Share of the merging credit union's members, balances and income lost after the merger.
06
Section Six
Economies of Scale: Quick Wins
Savings the combination can capture early, sized from both Call Reports
07
Section Seven
Adds, Changes and Strategies
What the integration plan should address, based on the numbers above
Next step
Merger Due Diligence Essentials
Free checklists for both sides: what the surviving credit union must review before it signs, and what the merging partner must confirm for its members, staff and community. Your details carry over.
Balance sheet: cash / securities / other investments
AS0009 / AS0013 / AS0017
Allowance for credit losses / other assets
AS0048 or 719 / AS0036
Borrowings / total liabilities / equity acquired in merger
860C / LI0069 / 658A
Combination Rules
Pro forma values add the two Call Reports together for each quarter both filed.
Income measures use the trailing four quarters ending with the latest quarter.
The combined credit union is placed in the asset band of its combined total assets.
Peer ranks compare against all credit unions in that band, using the same trailing four quarter basis.
Efficiency ratio is operating expense divided by net interest income plus non-interest income.
Net worth is a simple sum before merger accounting and fair value adjustments.
The combined balance sheet adds the latest filed statements of financial condition. After merger accounting, the merging credit union's equity is recorded as equity acquired in merger, before fair value adjustments.
Source
NCUA quarterly Call Report data files (Form 5300), Q1 2016 through . Published at ncua.gov.
Prepared by SPM Strategic Process Management. This is a screening model, not a merger valuation or due diligence. Regulatory items are summary reminders; confirm requirements with NCUA and counsel.
