NCUA Approves 41 Mergers During 2021’s Second Quarter

The pace of consolidations picked up during the second quarter as the NCUA approved 41 mergers compared to 25 mergers approved in the second quarter of 2020, and 33 during the first quarter of 2021.

However, 17 or 40% of the second quarter’s 41 credit unions consolidated because of poor financial condition (8), loss of sponsor support (4), declining or loss of membership (2), lack of growth (2), and inability to obtain officials (1).

The remaining 24 credit unions got the independent federal agency’s nod to merge for expanded services, according to NCUA’s Merger Activity and Insurance Report for the second quarter of 2021 posted this week.

The largest consolidation in the second quarter was the $195 million Arrowpointe Federal Credit Union in Catawba, S.C., serving more than 17,000 members, which was approved to merge with the $3.4 billion Founders Federal Credit Union in Lancaster, S.C. The second largest consolidation was the $76.4 million Houston Metropolitan Federal Credit Union in Houston, with the $134 million Plus4 Credit Union also based in Houston, followed by the third largest consolidation of the $59 million Unity Credit Union in Warren, Mich., with the $279 million Michigan United Credit Union in Birmingham, Mich.

Eight credit unions that got the green light to merge because of their poor financial condition included the $23.7 million FedStar Federal Credit Union in Salem Va., into the $224 million InFirst Federal Credit Union in Alexandria, Va.; the $433,904 Camden Police Federal Credit Union in Camden, N.J., with the $490 million First Harvest Credit Union in Deptford, N.J.; the $862,532 Kase Credit Union in Vandergrift, Pa., with the $107 million Pheple Federal Credit Union in Greensburg, Pa.; the $8.2 million Global 1 Credit Union in Pennsauken, N.J. with the $490 million First Harvest Credit Union in Deptford, N.J.; the $16.2 million Holston Methodist Federal Credit Union in Knoxville, Tenn., with the $110 million Interfaith Federal Credit Union in Montclair, Calif.; the $14.2 million Processors-Industrial Community Credit Union in Granite City, Ill., into the $173 million Midwest Members Credit Union in Wood River, Ill.; the $6.5 million Muddy River Credit Union in Atchison, Kan., into the $175 million Frontier Community Credit Union in Fort Leavenworth, Kan. and the $52.4 million People’s Choice Credit Union in Medford, Wis., with the $3.7 billion Royal Credit Union in Eau Claire, Wis.

Four credit unions that consolidated because of lack of sponsor support were the $4.9 million Norton-Troy Employees Credit Union in Cohoes, N.Y., with the $336 million Hudson River Community Credit Union in Corinth, N.Y.; the $29.3 million McKesson Employees Federal Credit Union in Walnut Creek, Calif., with the $46.8 million Western Healthcare Federal Credit Union in Martinez, Calif.; the $3.7 million St. Thomas Employees Federal Credit Union in St. Paul, Minn., with the $22.4 million Catholic United Financial Credit Union also based in St. Paul; and the $12.4 million Federal Employees West Federal Credit Union in Los Angeles with the $2.1 billion Credit Union of Southern California in Anaheim.

Two credit unions that got the NCUA nod to merge because of loss or declining field of membership included the $2.5 million NAPFE Federal Credit Union in Wash., D.C. with the $275 million U.S. Postal Service Federal Credit Union in Clinton, Md., and the $5.4 million Romeo Community Credit Union in Romeoville, Ill., with the $31.3 million Canals & Trails Credit Union in Lockport, Ill.

Two credit unions that are merging because of lack of growth include the $59 million Unity Credit Union in Warren, Mich., with the $279 million Michigan United Credit Union in Birmingham, Mich., and the $30.1 million Cone Credit Union in Neeham, Wis., into the $370 million Simplicity Credit Union in Marshfield, Wis.

Because of its “inability to obtain officials,” the $20.3 million Tin Mill Employees Federal Credit Union in Weirton, W. Va., was approved to merge with the $545 million First Choice America Federal Credit Union also based in Weirton.