The NCUA’s November insurance fund activity report reveals the regulator approved 23 mergers, including three prompted by poor financial condition, and three more experiencing a lack of growth or lack of sponsor support.
In Texas, the $39 million Fort Worth Telco CU reported a net loss of nearly -$72,000 as of Sept. 30, 2012, and hasn’t seen 7% net worth since Dec. 2009. It will merge into the $1.45 EECU, also of Fort Worth.
The $15 million Appalachian FCU of Berea, Ky., will be merged into the $155 million Appalachian Community FCU in Kingsport, Tenn. The merging credit union reported 3.39% net worth as of Sept. 30, 2012 and nearly 14% delinquent to total loans.
The $8 million East Coast CU of Wilmington, N.C., will be merged into the $221 million Piedmont Advantage Credit Union of Winston-Salem, N.C. The merging credit union just slipped below 7% net worth in Sept. 2012 after posting a $160,000 net loss fueled by a $122,000 loan loss provision.
The $335 million Newport News Neighborhood FCU of Newport News, Va., reported a lack of sponsor support drove it to merge into the $1.7 billion Langley FCU, also of Newport News. The community-chartered credit union, which served those who work or reside in the city, reported strong net worth and ROAA, but problems with lack of loan and membership growth: as of Sept. 30, NNNFCU reported a 23.31% annualized loss of membership.
The $19 million Washington Postal Employees FCU of Washington, D.C., and the $1.3 million Steel Crete Employees FCU of Beech Bottom, W.Va., both reported lack of growth as their reason to seek mergers. They will be absorbed by the $315 million FedChoice FCU of Lanham, Md., and the $18.6 million Tin Mill Employees FCU of Weirton, W.Va., respectively.
The $3 million Canadian National Railway Employees FCU of Terry, Miss., will be merged into the $1.1 billion Magnolia FCU of Jackson, Miss., due to an inability to obtain financials, the NCUA said.
Other mergers of note include two in California: the $55.7 million Safeway Los Angeles FCU of Norwalk, which will merge into the $750 million Xceed Financial FCU in El Segundo, and the $72.5 million State Center CU of Fresno, which will merge into the $414 million Valley First CU of Modesto