The NCUA approved 16 mergers in October, including a Minnesota credit union because of poor management even though it is well capitalized with a net worth of 8%. What's more, the federal agency gave the OK for four undercapitalized credit unions to consolidate in Alabama, Indiana, Illinois and Virginia because of their poor financial condition.

Chartered in 1994, the $13.5 million Agassiz Credit Union in Crookston, Minn., which served 1,396 members, was approved to consolidate with the $611 million First Community Credit Union in Jamestown, N.D.

Since 2012 through the third quarter of this year, Agassiz CU has posted net income gains, except for 2015 when the Minnesota cooperative posted a net income loss of more than $80,000.  During the same time period, however, the credit union's net worth has never fallen below 7%, although its ROAA has ranged from 0.05% in 2012 to -0.06% in 2015 and then from 0.13% in 2016 to 0.03% at the end of the third quarter this year, according to NCUA financial performance reports.

Because of its poor financial condition, the $13.9 million Tri-Rivers Credit Union in Montgomery, Ala. was approved to merge with the $247 million Hope Credit Union in Jackson, Miss.  At the end of the third quarter, Tri-Rivers CU posted a net income loss of $531,674, a net worth of 1.83%, and a ROAA of -4.95%, according to NCUA financial performance reports.  Since 2013, the credit union has been losing money.  Tri-Rivers served 4,139 members.

The poor financial condition of the $4.1 million South Shore Railroad Employees Credit Union in Michigan City, Ind., which served 1,025 members, also led to its approved consolidation with the $36 million LaPorte Community Credit Union in La Porte, Ind.

At the end of the third quarter, South Shore posted a net loss of $120,579, a net worth of 3.82% and ROAA of -4.08%.  In addition to a gradual loss of loan income since 2012, the credit union also recorded net income losses in 2012, 2014 and 2016, according to NCUA financial performance reports.

The NCUA also approved mergers for the $3.7 million Route 1 Credit Union in Paris, Ill. and the $1.5 million Portsmouth Va City Employees Federal Credit Union in Portsmouth, Va., because of their poor financial condition.

In October, the Illinois Division of Financial Institutions issued a 60-day suspension order for Route 1 CU, which served 979 members.

The state regulator alleged that the credit union's allowance for loan losses was underfunded by more than $34,000. The credit union also allegedly failed to appoint the state minimum of three supervisory committee members, and the supervisory committee did not complete an annual audit last year, according to the state regulator. The credit union posted a net worth of 3.65% at the end of the third quarter.

However, Route 1 CU was merged earlier this month into the $259 million Decatur Earthmover Credit Union in Forsyth, Ill.

At the end of the third quarter, the Portsmouth Va City Employees Federal Credit Union posted a net loss of $91,341, a net worth of 1.86% and an ROAA of -7.32%, according to NCUA financial performance reports.

Since 2012, the credit union's financial performance reports have shown declining loan revenue and mounting net income losses. 

Portsmouth Va City Employees FCU, which served 738 members, was approved to consolidate with the $2.1 billion Chartway Federal Credit Union in Virginia Beach.

Because of its loss of members, the $1.9 million Times Free Press Credit Union in Chattanooga, Tenn. was given the green light to merge into the $19.7 million Healthcare Services Credit Union also based in Chattanoonga.

The Times Free Press CU membership declined to 441 at the end of 2012 to 361 at the end of this year's third quarter.

According to the NCUA's October Insurance Report of Activity, 10 mergers were approved for expanded services.

October's largest consolidations for expanded services were the $117 million Meadows Credit Union in Palatine, Ill., into the $1.1 billion Consumers Cooperative Credit Union in Gurnee, Ill., followed by the $24 million Newaygo County Service Employees Credit Union in Fremont, Mich., with the $39 million Rouge River Community Credit Union in Sparta, Mich., the $23 million RAFE Federal Credit Union in Riverside, Calif., with the  $1.2 billion Financial Partners in Downey, Calif. and the $20 million Harbor Area Postal Employees Federal Credit Union in Lomita, Calif., into the $1.1 billion Arrowhead Central Credit Union in San Bernardino, Calif.

The remaining six credit unions in Connecticut, Michigan, Virginia, Iowa, Ohio and Alabama approved to merge for expanded services managed assets under $20 million.

The NCUA's approval of 16 consolidations last month was higher than that total number of mergers approved in October 2016, which was 11.