The NCUA approved 19 mergers in December, bringing 2014′s total number of consolidations to 262, which was considerably higher than the 243 mergers in 2013 and slightly higher than the 258 consolidations in 2012.
Since 2000, the annual trend line for mergers has ranged from 200 to 250, for a yearly average of 229, according to the NCUA. If that trend line continues to hold, there will be an estimated 5,400 cooperatives by 2018 and approximately 4,260 credit unions by 2023.
While all of the 19 merged credit unions were under $30 million assets, four cooperatives received NCUA approval because they were in poor financial condition, according to the agency's December Insurance Report of Activity.
The NCUA approved the merger of the $27 million Chino Federal Credit Union in Silver City, N.M., with the $427 million First Financial Credit Union in Albuquerque, N.M. Chino's net worth was 6.75% as of Sept. 2014, according to NCUA financial performance reports.
Though the cooperative was not losing money, its net income declined from $396,965 in 2011 to $122,614 by the end of 2013. However, its provision for loan losses totaled $25,436 in 2011 and jumped to more than $305,000 by the end of 2013. At the end of the third quarter of 2014, Chino's net income totaled $97,191 while its provision for loan losses was $481,232, according to NCUA financial performance reports.
Chino's 6,473 members will vote in February whether to merge with First Financial, according to Chino's website.
Because of its poor financial condition, the NCUA said it approved the merger of the $5.1 million Southern Butler County Community Credit Union in Mars, Pa., with the $287 million Butler Armco Employees Credit Union in Butler, Pa.
Southern Butler County Community, which served 1,222 members, posted a negative ROAA since at least December 2009 when it was negative 0.52%. It continued to struggle with profitability through the end of September 2014, when its ROAA was negative 1.39%, according to NCUA financial performance reports.
The NCUA also approved the merger of the $1.4 million Amaizo Federal Credit Union in Whiting, Ind., with the $11.2 million Finans Credit Union in Hammond, Ind., because of Amaizo's poor financial condition.
Amaizo's net worth declined from 7.21% in December 2009 to 5.33% in September 2014. Its ROAA was at negative 2.45% at the end of last year's third quarter, according to NCUA financial performance reports.
Because of its poor financial condition, the $941,955 New Mexico Correctional Employees Credit Union's got NCUA's approval to merge with the $827 million U.S. New Mexico Federal Credit Union in Albuquerque, N.M.
New Mexico Correctional Employees also struggled with profitability when it posted a ROAA of negative 0.88% in December 2010. Its ROAA remained in negative territory through September 2014 when it recorded a ROAA of negative 8.21%, according to NCUA financial performance reports.
As a result of its inability to obtain officials, the $6.1 million Richmond Police Department Credit Union in Virginia got the NCUA's green light to consolidate with the $14.8 million Richmond Fire Department Credit Union.
The NCUA also approved 14 mergers for expanded services, according to the agency's December Insurance Report of Activity.
Other mergers that were either finalized or announced included the $7 million Portland Maine Police Department Federal Credit Union with the $103 million TruChoice Federal Credit Union of South Portland, Maine.
Hosea Carpenter, president/CEO of Portland Maine Police Department FCU, retired at the end of 2014, three months after an internal audit confirmed that an employee misappropriated credit union funds. The FBI was investigating the incident though the employee was not identified and the amount of money stolen was not reported when the internal audit results surfaced in September 2014.
The FBI office in Boston, which investigates crimes in Maine, declined to comment on the case at this time. TruChoice Kenneth B. Acker did not return a phone call from CU Times seeking comment.
According to a TruChoice statement on its website, the PMPDFCU consolidation was finalized Dec. 1.
The $2.1 million ASE Federal Credit Union in Baltimore merger with the $45 million St. Agnes Federal Credit Union, also in Baltimore, was finalized Dec. 1, according to a St. Agnes prepared statement.
The $8.9 million Central Washington Federal Credit Union in Yakima, Wash., consolidation with the $1.3 billion Gesa Credit Union in Richland, Wash., became effective Dec. 8, according to a statement on Gesa's website.
On Dec. 10, the $208 million Tri-Pointe Community Credit Union in Grand Blanc, Mich., said it plans to merge with the $1.6 billion Genisys Credit Union in Auburn Hills, Mich. The consolidation is expected to close sometime later this year, according to a prepared statement.
The $69.2 million EDTECH Credit Union in Butte, Mont., merger was finalized with the $607 million Horizon Credit Union in Spokane Valley, Wash., both cooperatives said in a prepared statement Dec. 10.
The $55 million Big Valley Federal Credit Union in Sacramento, Calif., announced Dec. 22 that it will merge with the $274 million First U.S. Community Credit Union also in Sacramento, Feb. 1, according to a prepared statement.
The $34.9 million Sun Center Federal Credit Union in Lagrange, Ohio, consolidated into the $231 million Firefighters Community Credit Union in Cuyahoga Heights, Ohio, FCCU said in a statement Dec. 31.
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