CU Consolidations Declined During 2022’s Fourth Quarter, NCUA Data Shows

The NCUA approved 35 mergers in the fourth quarter, according to the federal agency’s Q4 Merger Activity and Insurance Report released Wednesday. The mergers approved for last year’s final quarter were considerably lower than the 59 consolidations that got the green light in the third quarter, 39 in the second quarter and 48 in the first quarter of 2022.

However, the federal agency approved a total of 181 consolidations last year, which was substantially higher than the 161 mergers OK-ed in 2021 and 130 in 2020.

In addition to the 28 credit unions that received the NCUA’s nod to consolidate for expanded services, four credit unions secured approval to merge because of their poor financial condition and three credit unions got the OK to consolidate because of their inability to obtain officials.

The five largest credit union mergers in the final quarter of 2022 were:

1. The $192 million Mariott Employees Federal Credit Union in Rockville, Md., into the $2.7 billion USAlliance Federal Credit Union in Rye, N.Y. (Expanded services).

2. The $187 million Reliant Federal Credit Union in Casper, Wyo., with the $527 million Uniwyo Federal Credit Union in Laramie. (Expanded services).

3. The $78.6 million Alps Credit Union in Sitka, Ark., into the $154 million Tongass Federal Credit Union in Ketchikan, Ark. (Expanded services).

4. The $67.9 million Pacific Transportation Federal Credit Union in Gardena, Calif.,  with the $2.5 billion Credit Union of Southern California in Anaheim. (Expanded services).

5. The $59 million Klamath Public Employees Credit Union in Klamath Falls, Ore., with the $278 million Pacific Crest Federal Credit Union also in Klamath Falls. (Expanded services).

There were 23 credit unions with less than $60 million in assets that received the NCUA nod to merge for expanded services.

Four credit unions that got the green light to merge because of poor financial condition were:

1. The $12.2 million St. Anthony of New Bedford Federal Credit Union in New Bedford, Mass., into the $56.9 million Southcoast Credit Union, also in New Bedford.

2. The $4.7 million St. John’s Buffalo Credit Union in Buffalo, N.Y., with the $68 million Radius Federal Credit Union in Kenmore, N.Y.

3. The $488,406 T & FS Employees Credit Union in Port Arthur, Texas into the $514 million Associated Credit Union of Texas in League City.

4. The $373,054 Mount Lebanon Federal Credit Union in Baltimore with the $552 million SecurityPlus Federal Credit Union also in Baltimore.

Three credit unions that got the green light to consolidate because of their inability to obtain officials included:

1. The $30.1 million HTM Area Credit Union in Troy, Ohio with the $1.5 billion Superior Credit Union in Lima, Ohio.

2. The $26.6 million Superior Savings Credit Union in Massillon, Ohio into the $95.9 million Golden Circle Credit Union also in Massillon.

3. The $660,472 Muni Employees Credit Union in Ottumwa, Iowa with the $25.7 million River Community Credit Union also in Ottumwa.

Editor’s note: The NCUA’s merger approval does not necessarily indicate whether members of the merging credit union approved the consolidation.