NCUA Approves 32 Mergers in the Second Quarter

Mergers approved by the NCUA in the second quarter of 2019 totaled 32, slightly higher than the 29 mergers approved in the first quarter but substantially down compared to the second quarter consolidations over the last five years.

At the end of last year’s second quarter, the independent federal agency approved 47 consolidations, 51 in 2017, 47 in 2016, 72 in 2015 and 70 at the end of the second quarter in 2014.

According to the NCUA’s second quarter merger report for this year, 26 merger deals were approved for expanded services, while three consolidation agreements got the green light because of an “inability to obtain officials,” and one each for poor financial condition, lack of growth and loss or decline of membership.

The second quarter’s largest approved merger was the $1.3 billion Inspirus Credit Union in Seattle, Wash., with the $2.1 billion Gesa Credit Union in Richland, Wash. That consolidation deal was initially announced in December 2018, creating the second largest cooperative in the Evergreen State. On Aug. 1, Inspirus CU began operating as a division of Gesa CU.

The next largest consolidation deals included the $247 million Deer Valley Credit Union in Phoenix, Ariz., with the $191 million Canyon State Credit Union also based in Phoenix; the $154 million The Partnership Federal Credit Union in Arlington, Virg., into the $2.7 billion NASA Federal Credit Union in Upper Marlboro, Md.; and the $71 million FME Federal Credit Union in Roseville, Mich. into the $1.1 billion Community Choice Credit Union in Farmington Hill, Mich.

Credit unions that got the NCUA’s merger nod because they were unable to find new CEOs included the $13.5 million SB Community Federal Credit Union in Muskegon, Mich., into the $126 million Service 1 Federal Credit Union also in Muskegon; the $1.9 million School Districts 162/163 Employees Federal Credit Union in Park Forest, Ill., with the $233 million Illiana Financial Credit Union in Calumet City, Ill.;  and the $9.5 million Energy Services Federal Credit Union in Saint Cloud, Minn., into the $1.1 billion Spire Credit Union in Falcon Heights, Minn.

Because of its poor financial condition, the $409,173 Good Counsel Federal Credit Union in Brooklyn, N.Y. was approved to consolidate with the $28.4 million Brooklyn Cooperative Federal Credit Union.

The loss or declining membership of the $99,085 Antioch MB Federal Credit Union in Decatur, Ill,, led to its approved merger with the $739 million 1st MidAmerica Credit Union in Bethalto, Ill.

Because of its lack of growth, The Partnership FCU was given NCUA’s permission to consolidate with NASA FCU.

The remaining 16 credit unions that got NCUA’s approval to merge were all under $50 million in assets.