NCUA Approves 34 First Quarter Credit Union Mergers

The NCUA approved 34 mergers in the first quarter of the year, which is up from the first quarter in 2019 when the federal agency approved 29 consolidations.

Five credit unions got the green light to merge because of their poor financial condition. Four of the financial cooperatives – three of them faith-based – were well under $5 million in assets. The other credit union, Ball State Federal Credit Union in Muncie, Ind., managed $94.4 million in assets and served more than 11,000 members.

Since 2016 through the first quarter of this year, Ball State has seen steady declines in loans and members, according to NCUA financial performance reports. Its net worth at the end of March fell to 6% from 7.72% in 2016.

The 64-year-old Ball State will consolidate with the $604 million Financial Center First Credit Union in Indianapolis.

The other credit unions that received NCUA approval to merge because of poor financial performance included the $42,744 Bethany Baptist Christian Federal Credit Union in Chester, Pa., with the $2.4 billion Trumark Financial Credit Union in Fort Washington, Pa.; the $89,939 Epiphany Credit Union in Brooklyn, N.Y., with the $13 million Transfiguration Parish Federal Credit Union, also based in Brooklyn; the $238,185 Greater Galilee Baptist Credit Union in Milwaukee, with the $2.2 billion Educators Credit Union in Mount Pleasant, Wis.; and the $3.9 million Southwest Kansas Community Credit Union in Dodge City, Kan., with the $79 million Credit Union of Dodge City.

Although the NCUA’s quarterly report of approved mergers listed the $13 million Third Coast Federal Credit Union in Corpus, Christi, Texas into the $3.3 billion Navy Army Community Credit Union also based in Corpus Christi, the consolidation has been cancelled, Third Coast FCU President/CEO Loss E. Thomas said Friday.

One credit union, the $362,743 St. Jude Credit Union in Chicago was unable to find a new CEO and was approved to merge with the $314 million First Northern Credit Union, also based in Chicago.

Twenty-seven credit unions were allowed to consolidate for expanded services. Among the largest were the $57 million N.W. Iowa Credit Union in LeMars, Iowa with the $205 million Siouxland Credit Union in South Sioux City, Neb., and the $38.4 million Alabama Rural Electric Credit Union in Montgomery, Ala., with the $660 million Alabama ONE Credit Union in Tuscaloosa, Ala.

The remaining 25 credit unions that were approved to merge were all under $25 million in assets.