Credit Union Mergers Declined in the Second Quarter, NCUA Report Shows

The NCUA approved 35 mergers in the second quarter, down from 41 consolidations in the first quarter, according to the federal agency’s Q2 Merger Activity and Insurance Report released this week.

This year’s second quarter mergers were lower compared to the 41 consolidations approved by the NCUA during 2021’s second quarter, but higher than the 25 mergers approved in the second quarter of 2020.

In addition to the 28 credit unions that received the NCUA’s nod to consolidate for expanded services, two credit unions got the OK to merge because of poor financial condition, three for inability to obtain officials, one for lack of sponsor support, and one for loss or decline of field of membership.

The largest credit union mergers approved by the NCUA in the second quarter included:

• The $200 million Financial One Credit Union in Columbia Heights, Minn., with the $1.7 billion Magnifi Financial Credit Union in Melrose, Minn. (Expanded services).
• The $52.4 million allU.S. Credit Union in Salinas, Calif., into the $36.6 billion Pentagon Federal Credit Union in McLean, Va. (Expanded services).
• The $44.1 million Jacksonville Postal & Professional Credit Union in Jacksonville, Fla., with the $1.3 billion First Florida Credit Union in Jacksonville. (Inability to obtain officials).
• The $34.6 million Western Illinois Credit Union in Macomb, Ill., with the $1.3 billion Credit Union 1 in Rantoul, Ill. (Expanded services).
• The $33.3 million Peabody Municipal Federal Credit Union in Peabody, Mass., into the $107 million Energy Credit Union in West Roxbury, Mass. (Expanded services).

Credit unions that got the OK to merge because of poor financial condition were:

• The $11.6 million Moore West Federal Credit Union in San Leandro, Calif., with the $650 million UNCLE Credit Union in Livermore, Calif. Moore West posted a loss of $787,723 at the end of second quarter, NCUA financial performance reports showed.
• The $4.5 million MSBA Employee Federal Credit Union in Garden City, N.Y., with the $75.7 million Consumers Federal Credit Union in Brooklyn, N.Y. MSBA Employees recorded a loss of $276,577 at the end of the second quarter, NCUA financial performance reports showed.

Credit unions approved to consolidate because of the inability to obtain officials, in addition to Jacksonville Postal & Professional, listed above, included:

• The $16.2 million Champaign County School Employees Credit Union in Champaign, Ill., with the $86.9 million Illinois Educators Credit Union in Springfield.
• The $3.6 million U.S. Court House SDNY Federal Credit Union in New York, N.Y., into the $23.1 million The Finest Federal Credit Union in New York, N.Y.

One credit union that received approval to merge because of lack of sponsor support was:

• The $1 million U.S. Weather Bureau NY Federal Credit Union in Westbury with the $859 million Department of Commerce Federal Credit Union in Washington, D.C.

One credit union that received the green light to merge because of a loss or decline of field of membership was:

• The $489,718 Security Plus Federal Credit Union in Russellville, Ky., with the $226 million Service One Credit Union in Bowling Green, Ky.