Large Credit Unions Take Advantage of Underserved Area Adoptions
ALEXANDRIA, Va. -- Several large credit unions adopted a number of underserved areas late last year.
Randolph-Brooks Federal Credit Union ($2.5 billion) was the largest credit union by assets to obtain approval from NCUA to adopt an underserved area last month, according to NCUA's Insurance Report of Activity from December. The credit union already has 895,000 members and will gain 5,664 potential members with the new area.
Additionally, Tinker FCU ($1.4 billion) adopted an underserved area in Oklahoma City for a total of 48,377 potential members; Langley FCU ($1.2 billion) adopted four underserved areas in the Williamsburg, Hampton, Newport News, Norfolk, and Virginia Beach areas totaling 337,679 potential members; Army Aviation Center FCU ($616 million) added 7,218 potential members; and Corning FCU ($560 million) adopted 45,504 potential members. None of the underserved areas were duplicative of past ones, according to NCUA.
Due to the American Bankers Association lawsuit in Utah that forced NCUA to bar non-multiple common bond charters from adopting underserved areas, expansion into these areas has slowed. In 2006, a total of 74 federal credit unions adopted 97 groups for nearly 17.5 million potential members compared to 2005 when 117 credit unions adopted 179 areas for 24.6 million potential members, an end-of-year NCUA report on underserved areas adopted by federal credit unions stated. Credit unions adopting underserved areas in 2004 totaled 139 with 240 underserved areas added for 27.4 million potential members.
Community chartering has also declined. Just four community charters were approved, the largest of which was granted for $323 million Island Federal Credit Union in Suffolk County, N.Y. for nearly 2.7 million potential members. The NCUA Board did not have to approve the conversion because it was a duplicate.
Alliance CU ($84 million), also in Utah, converted to a federal charter and adopted a three-county community charter in December including Weber, Davis and Morgan Counties. On the flip side, $54 million Down East FCU converted to a state charter.
In addition, $389 million McCoy Federal Credit Union, which has over one million members, expanded the reach of its community charter to cover 1.9 million potential members.
The usual couple dozen credit union mergers went through last month, including a larger one between Community Choice CU ($195 million) and Research FCU ($223 million).
However, 20 of the 26 total mergers were merging credit unions under $10 million in assets.
A new federal credit union has joined the flock: Union Baptist Church FCU in Fort Wayne, Ind., serving the employees and members of the church by the same name. --firstname.lastname@example.org