Lauren Seay

The industry reported $1.37 billion in overdraft fee income in the third quarter, a 3.0% decline from $1.41 billion in the linked quarter and a 22.7% drop from $1.77 billion in the year-ago period.

California-chartered credit unions brought in $183.1 million in overdraft fees in 2022, more than five times the $35.1 million state-chartered banks reported. Those credit unions also brought in nearly double the nonsufficient fund income than banks.

Clarity in the outlook for interest rates and a rally in stock prices should help boost bank M&A in 2024 after activity skidded to a near halt in 2023, deal advisers said.

Credit unions still want to diversify their business by purchasing banks, but they will face more impediments, such as stiffer competition from bank bidders and capital restraints.

The latest credit union-bank deal broke a number of records, including the largest bank target ever and the largest credit union buyer ever.

Some banks experienced large stock price declines as Wall Street harshly judged fourth-quarter 2023 earnings results.

The industry reported $1.41 billion in overdraft fee income in the 2023 fourth quarter, up more than 3% from the linked quarter.

Credit unions accounted for buyers in 27.3% of US bank deals announced so far this year, the highest percentage ever.

Texas Dow Employees CU's acquisition of Sabine State Bank marks the second-largest deal of a credit union buying a bank, as credit unions increasingly play a larger role in depository M&A.

The possibility of tariffs and a recession threatens the transportation industry, which has already faced headwinds over the past few years due to declining demand, rising costs and stagnant freight rates.