Increasingly, discussions at industry directors' conferences are gravitating towards the topic of mergers. Board members are curious about how their counterparts at other cooperatives are looking at mergers. The drastically changing competitive landscape has some boards doing a double take of their business model and wondering what it will take for their credit union to thrive, not just survive. According to the NCUA, 130 credit union mergers have been scheduled for member votes in 2024. ALM First's role in some of the like sized credit union mergers this year has provided us with insights into how some boards are opting to proactively accelerate their strategic position.

Making the situation even more complex, the rate of CEO succession is not slowing down. Our team works with boards years in advance to strategically navigate this conversation, increase succession options, and run through scenarios. One scenario we are seeing more frequently is prospective CEO candidates offering to be another cooperative's next CEO and bring their current credit union with them. Reacting to this conversation can create avoidable tension, gum up the CEO succession process, and test the patience of well-qualified candidates while the board drafts a, sometimes rushed, response. In this scenario, boards often end up back at square one.