NCUA Approves 33 Mergers During 2021’s First Quarter

The NCUA approved 33 mergers in the first quarter of 2021, compared to 34 consolidations in the first quarter of 2020.

Five credit unions got the green light to merge because of their poor financial condition, four for lack of sponsor support and 24 for expanded services, according to the NCUA’s Merger Activity and Insurance Report for the first quarter of 2021 posted Monday.

The largest approved consolidation was the $336 million Infinity Federal Credit Union in Westbrook, Maine, with the $1.3 billion Deere Employees Credit Union of Moline, Ill. Members of Infinity FCU approved the merger last week. The second largest consolidation was the $195 million Coulee Dam Federal Credit Union in Coulee Dam, Wash., into the $4.3 billion Spokane Teachers Credit Union in Liberty Lake, Wash.

The first quarter’s third largest merger of the $184 million Solano First Federal Credit Union in Fairfield, Calif., was approved because of its poor financial condition, according to the NCUA’s Merger Activity and Insurance Report.

Although Solano First posted a meager gain of nearly $10,000 at the end of last year, it recorded losses of $165,677 in 2019; $2,229,271 in 2018; $49,876 in 2017; and $1,225,589 in 2016, according to NCUA financial performance reports. Since 2018, the credit union saw declines in membership and loans, NCUA financial performance reports showed.

Solano First was approved to merge with the $2.4 billion Valley Strong Credit Union in Bakersfield, Calif.

The $166 million Animas Credit Union in Farmington, N.M., was the fourth largest consolidation approved with the $3.2 billion Sandia Laboratory Federal Credit union in Albuquerque.

The first quarter’s fifth largest merger of the $141 million Aspire Federal Credit Union in Clark, N.J., was approved because of its poor financial condition, the NCUA’s merger report showed.

Though the consolidation of Aspire took effect on April 1 with the $27.2 billion Pentagon Federal Credit Union in McLean, Va., it was approved as a supervisory merger on Feb. 22 by NCUA Regional Director John Kutchey. The consolidation did not require the NCUA board’s approval, according to an NCUA spokesperson.

At the end of this year’s first quarter, Aspire posted a net loss of $2,143,360, according to NCUA financial performance reports. At the end of 2020, Aspire posted a $2.2 million loss and a gain of $559,858 in 2019. The New Jersey credit union also recorded losses of $3.4 million in 2018, $6 million in 2017 and $1.6 million in 2016, NCUA financial performance reports showed.

Because of its poor financial condition, the $16.3 million Georgetown Federal Credit Union in Washington, D.C., received the approval to merge. Over the last five years, Georgetown FCU posted declines in members and loans, according to NCUA financial performance reports. The credit union, which served more than 2,000 members, will merge with the $264 million PAHO/WHO Federal Credit Union, also based in Washington, D.C.

Additional credit unions that were approved to consolidate because of their poor financial condition included the $1.2 million Desert Sage Federal Credit Union in Nampa, Idaho and the $148,975 Bacharach Employees Federal Credit Union in New Kensington, Pa. Desert Sage will merge with $613 million Pioneer Credit Union in Mountain Home, Idaho and Bacharach Employees will consolidate with the $106 million Pheple Federal Credit Union in Greensburg, Pa.

Four credit unions that were approved to consolidate because of lack of sponsor support were all under $5 million in assets, including the $4.8 million AE Goetze Employees Credit Union in Lake City, Minn., with the $252 million First Alliance Credit Union in Stewartville, Minn.; the $1.2 million Electrogas Credit union in Alton, Ill., with the $52.1 million Altonized Community Credit Union also based in Alton; the $988,392 million UAP Employees Federal Credit Union in Forest, Ohio into the $174 million Quest Credit Union in Kenton, Ohio; and the $660,735 Western States Regional Federal Credit Union in Los Angeles, into the $120 million Rancho Federal Credit Union in Downey, Calif.