As 2025 drew to a close, credit union executives and professionals from Forvis Mazars shared their insights on challenges and trends expected to affect the industry this year. The interactive session provided a platform for leaders to connect and discuss topics such as merger and acquisition (M&A) activity, regulatory issues, remote work policies, and new accounting guidance.
M&A Activity
M&A activity was one of several areas of concern for credit union leaders. They found that M&A activity is increasing, but the process is not always straightforward. Some executives noted the difficulty in finding suitable merger partners, expressing caution about using brokers whose priorities may not align with the credit union’s best interests. It was also noted that merging with another credit union involves more diplomacy compared to the more transactional nature of acquiring a bank, and regulatory scrutiny of these deals appears to be increasing.
Outlook for 2026
Financially, many participants are looking toward 2026 for improved performance, contingent on managing asset quality and potential credit losses. Strong competition for members’ shares has kept costs high, and leaders are concerned about rising delinquencies in credit card, auto, and personal loan portfolios. On the regulatory front, a proposed Illinois law that would prohibit collecting interchange fees on taxes or tips was identified as a significant threat that could affect any credit union with members conducting business in the state.
Return-to-Office Mandates
Credit union leaders said they face challenges with return-to-office mandates. Some credit unions are struggling with employee retention and local skill gaps after requiring staff to come back to the office. Inconsistencies in how remote work policies are applied across different departments also present management difficulties.
New Accounting Guidance
A new accounting standard, Accounting Standards Update 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans, was also top of mind for credit union executives. The accounting guidance will eliminate the double count for CECL in loans acquired through business combinations, as well as loan pool purchases, and be retroactive for 2025 transactions.
How Forvis Mazars Can Help
The roundtable underscored the complex environment that credit unions are currently navigating. Key challenges revolve around strategic growth through M&A, adapting to new work models, managing financial risks, and responding to a shifting regulatory landscape.
Forvis Mazars is committed to supporting credit union leaders with current insights and opportunities for continued engagement. To learn more or participate in future roundtables, please contact our team.