Gulf Coast Mergers Demonstrating Hurricane Effects

ALEXANDRIA, Va. – Three small credit unions from the Gulf Coast were merged during the month of March, according to NCUA’s monthly Insurance Report of Activity.

The smallest was $114,225 State and Parish Employees Federal Credit Union in Baton Rouge, which merged with $113 million The New Orleans Firemen’s Federal Credit Union of Metairie, La. Though delinquencies began increasing last summer, they jumped to $108,000 for the tiny credit union as of the March Call Reports with the majority more than two months over due. Loss of or declining field of membership was the reason provided for the merger. NCUA Director of Public and Congressional Affairs John McKechnie confirmed that this merger was related to Hurricanes Katrina and Rita that hit the region late last summer. This merger was voluntary, he explained, as were three earlier ones related to the storms. Orleans Public Schools was the only one that cost the NCUSIF money with a $550,000 tab. Another four to six impacted credit unions are still considered potential merger candidates, according to McKechnie.