National Geographic Federal Credit Union to Merge in August

National Geographic’s first edition was published in 1888, but it wasn’t until 1980 when the National Geographic Federal Credit Union opened its doors to serve the financial needs of employees of the National Geographic Society in Washington, D.C., one of the world’s largest scientific and educational non-profits that manages $1.4 billion in assets.

While the presses will keep rolling out National Geographic magazine, the credit union’s 38-year run will come to an end when it officially merges with the $222 million O.A.S Staff Federal Credit Union in Washington, D.C. on August 1.

According to the NCUA’s May Insurance Report of Activity, NGFCU’s merger was approved because of its loss or declining field of membership. Ten years ago, the credit union was serving more than 2,000 members. Since then, membership has fallen to its current 1,567 members.

The NCUA also approved an additional 18 consolidations in May, including the merger of the $10 million Borinquen Sur Federal Credit Union in Penuelas, Puerto Rico. Because of its poor financial condition, Borinquen Sur FCU was approved to merge with the $367 million Caribe Credit Union in Guaynabo, Puerto Rico, about eight months after Hurricane Maria devastated the island last September.

NGFCU’s story is essentially the same as it is for many small credit unions that are forced to consolidate because of the increasing costs of technology, cybersecurity threats and regulations.

Jeff Hertrick, board chair of NGFCU, said the board had talks with about half a dozen potential merger partners. O.A.S. Staff FCU will continue to employ the three staffers at NGFCU and the branch within National Geographic’s headquarters at 1145 17th Street, NW, will remain open. The credit union managed $12.1 million in assets.

The largest credit union merger approved by the NUCA in May was the $543 million Vibe Credit Union in Novi, Mich. Into the $367 million Oakland County Credit Union.  The merger is expected to finalize in January 2019.  The second largest merger approved was the $36 million Ocean Crest Credit Union in Signal Hill, Calif., with the $1.2 billion Arrowhead Central Credit Union in Rancho Cucamonga Calif., and the third largest merger was the $32 million Wenatchee Valley Federal Credit Union in East Wenatchee, Wash., into the $124 million Lower Valley Credit Union in Sunnyside, Calif.

In addition to Borinquen Sur CU, two other credit unions received permission to consolidate because of their poor financial condition. They are the $8.6 million Cando Credit Union in Walbridge, Ohio into the $138 million Impact Credit Union in Clyde, Ohio and the $1 million W.N.M.H. Credit Union in Winfield, Kan., into the $52 million Panhandle Federal Credit Union in Wellington, Kan.