NCUA Approves 18 Mergers in September
The NCUA approved 18 mergers across 14 states in September, bringing the total number of consolidations to 190 so far this year, according to the agency’s monthly Insurance Activity Report.
September's merger numbers are lower than in September 2012, when the NCUA approved 23 mergers.
Texas posted the highest number of September mergers with three, followed by California and Illinois with two each.
Sixteen credit unions with fewer than $20 million in assets, one with $83 million in assets and one with $278 million in assets were merged out of existence.
The largest merger occurred between two Michigan credit unions.
Initially announced in June, the $704 million, 71,831-member First Community Federal Credit Union in Parchment, Mich., and the $278 million, 35,370-member E & A Credit Union in Port Huron, Mich., are consolidating and will operate under a new name that will be announced early next year.
The new cooperative will serve more than 105,000 members and manage nearly $1 billion assets, more than 375 employees and 21 branches in Michigan, Illinois and Wisconsin.
The merger of the $83 million, 5,911-member ChevronWest Credit Union of Bountiful, Utah into the $2.2 billion, 91,747-member Chevron Federal Credit Union of Oakland, Calif., is set to be completed Oct. 31.
The merger will add two branches in Utah and one in Colorado to Chevron’s existing locations in California, Texas, Louisiana, Mississippi, Maryland and Virginia.
Fourteen of the small credit unions merged with larger counterparts to expand services to members, while two reported they had consolidated due to poor financial condition, according to the report, posted on the NCUA’s website.
The $1.3 million, 426-member Ketema Federal Credit Union in El Cajon, Calif., posted a net worth of 6.58% in March and 6.29% in June, far below the peer average of 18.27%, according to NCUA financial performance reports. Ketema FCU merged with the $1.7 billion, 120,705-member California Coast Credit Union in San Diego.
The $8.7 million, 3,116-member Southern Illinois Area Credit Union’s net worth fell to 6.37% on June 30, from 7.34% in December 2012, according to NCUA financial performance reports. Like many small credit unions, SIACU had been struggling financially with declining loan, fee and investment income. From 2008 to 2012, SIACU posted a total net income loss of $412,068, NCUA financial performance reports show.
SIACU will merge into the $186 million, 23,639-member Arsenal Credit Union in Arnold, Mo., by the end of the year.