NCUA Approves 12 Mergers in April
The total number of credit union consolidations is down from previous years.
The NCUA approved 12 mergers in April, the same number of consolidations the independent federal agency approved in April 2017.
Compared to previous years, the approved mergers are down considerably from 20 in April 2016, 25 in April 2015 and 32 in April 2014, according to the NCUA’s insurance reports of activity.
The NCUA approved 43 consolidations at the end of this year’s first quarter in March, down only one from the 44 mergers approved by the federal agency at the end of last year’s first quarter.
The largest credit union merger approved by the NCUA in the first month of this year’s second quarter was the $120 million Education Plus Credit union in Monroe, Mich., with the $744 million Directions Credit Union in Sylvania, Ohio.
Although the credit unions are in different states, they are separated by only 36 miles. If finalized, the consolidation would make Directions CU Ohio’s sixth largest credit union with assets of $864 million and the Buckeye State’s third largest by members of more than 100,000.
April’s second largest approved merger was the $27.8 million Federal Family Federal Credit Union in Salt Lake City, Utah with the $71 million Hercules First Credit Union in Taylorsville, Utah. Federal Family FCU was chartered in 1954 and served 2,695 members.
The third largest consolidation approved by the NCUA was the $24 million Mountain Lakes Community Federal Credit Union in Piney Flats, Tenn., into the $1.9 billion Knoxville, TVA Employees Credit Union in Knoxville, Tenn. Chartered in 1957, Mountain Lakes Community FCU served 2,128 members.
Only one credit union received the green light to merge because of its poor financial condition.
Chartered in 2000, the $541,981 McPherson Community Federal Credit Union in Tyron, Neb., that served 218 members, saw steady declines, and in some years double-digit declines, in loans, assets, market share and members over the last five years, according to NCUA financial performance reports.
McPherson Community FCU was approved to merge into the $698 million Centris Federal Credit Union in Omaha, Neb., the state’s second largest credit union by assets.
The remaining eleven mergers were approved for expanded services, according to the NCUA’s April Insurance Report of Activity.