NCUA Approves 14 Mergers in June
Credit union consolidations for the first half of the year decline from last year.
The NCUA approved 14 mergers in June, bringing the total number of consolidations for the first half of the year to 87, down from the 95 approved mergers by the end of the first six months in 2017.
The largest merger in June was in Michigan where the $208 million SageLink Credit Union in Durand consolidated with the $325 million PFCU in Portland. The consolidation was finalized July 1. PFCU now manages $533 million in assets, 13 branches and 48,000 members.
Two Ohio credit unions, the $7 million RTA Brooklyn Federal Credit Union in Cleveland and the $2.9 million St. Helen Federal Credit Union in Dayton got the green light to merge because of their poor financial condition.
At the end of the first quarter, RTA Brooklyn posted a net income loss of $407,000. The credit union recorded additional net income losses of more than $13,000 at the end of last year and $122,000 in 2015, according to NCUA financial performance reports.
RTA Brooklyn was approved to merge with the $15.6 million Plain Dealer Federal Credit Union also based in Cleveland. Chartered in 1939, RTA Brooklyn served more than 3,500 members.
The $2.8 million St. Helen Federal Credit Union in Dayton has posted net income losses over the last five years, including nearly $20,000 at the end of last year, more than $17,000 at the end of the first quarter and an additional $26,000 at second quarter’s close, according to NCUA financial performance reports.
Founded in 1956, the 683-member St Helen FCU was approved to merge with the $60 million Firefighters and Company Federal Credit Union also based in Dayton.
The $3.5 million Springfield Catholic Credit Union in Springfield, Mo., got the OK to consolidate because of its lack of growth. Over the last five years, the credit union has posted declines in loans, members, market share and assets, according to NCUA financial performance reports.
Founded in 1955, the 1,118-member Springfield Catholic CU was approved to consolidate with the $153 million TellComm Credit Union also based in Springfield.
The NCUA gave 11 credit unions approval to merge for “expanded services.” Except for SageLink CU, the 10 remaining credit unions were less than $5 million in assets.
Additionally, three New York credit unions that recently finalized mergers included the $19.5 million, 2,292-member Long Island FCU in Port Jefferson into the $1 billion Suffolk FCU in Medford; the $640,921, 110-member Projector FCU in in Melville with the $6 billion Teachers FCU in Hauppauge, and the $4.4 million, 893-member Hornell Erie FCU in Hornell into the $457 million First Heritage FCU in Painted Post.