The pace of approved credit union mergers picked up significantly during the second quarter of 2015, and California led the nation with the largest number of consolidations.

What's more, a noticeable increase in merged credit unions with assets of more than $100 million also took place during the second quarter, according to the NCUA's Insurance Report of Activity for April, May and June.

The NCUA approved 71 mergers at the end of the second quarter, up from the 41 consolidations that were approved by the federal agency at the end of the first quarter, bringing the total number of consolidations for the first half of the year to 112.

That tally is down from the 123 mergers the NCUA approved at the end of the first half of 2014.

California saw the highest number of approved mergers at eight. Illinois was second, with six consolidations. During the first quarter of the year, the Golden State posted only one merger while Illinois saw five consolidations, according to the NCUA.

Also in the second quarter, seven credit unions with more than $100 million in assets received approval to consolidate with their larger counterparts.

During the first quarter, only two credit unions with more than $100 million in assets received approval to merge, for a total of nine credit unions in that size category for the first half of 2015.

At the end of the first half of 2014, the NCUA approved six credit unions with more than $100 million in assets to merge with larger cooperatives.

However, the NCUA cautions against defining the size of credit unions merging as a trend given the small numbers.

“Our staff does not believe there is a material trend at this moment of substantially larger credit unions merging into other credit unions,” John Fairbanks, public affairs specialist for the NCUA, said. “One could reasonably note the larger consolidations are more likely due to strategic reasons, as opposed to the more pronounced safety and soundness issues that existed during the 2008-2009 era.”

Among the 71 credit union mergers approved by the NCUA during the second quarter, about 95% were under $50 million in assets.

The federal agency green-lighted 53 mergers for expanded services, seven for poor financial condition, four for lack of sponsor, two for poor management, two for lack of growth and three for the inability to find a new CEO.

Read more about second quarter merger trends in the Aug. 26, 2015 print issue of CU Times.