This Letter and Appendix provide information on NCUA’s merger and purchase & assumption (P&A) process. NCUA has received numerous inquiries and questions on the subject. In an effort to improve transparency, this letter addresses several topics involving mergers and P&As including:
- An explanation of the P&A process and the various types of mergers;
- The criteria used to evaluate mergers and P&As;
- The identification of merger and P&A partners; and
- The selection of an acquirer in the limited circumstances when NCUA is involved in making the choice.
Although Wisconsin has its own statute that applies to state- chartered credit unions, the NCUA is involved as the insurer.