NCUA Approves 53 Mergers in First Quarter
The NCUA approved 53 credit union mergers in the first quarter of 2014, down from the 71 approved consolidations during last year's first quarter and 62 at the end of the 2012 first quarter.
In March, the NCUA approved 24 mergers, compared to 34 in March 2013. The NCUA's March Insurance Activity Report showed that eight credit unions were given the green light to merge because of their poor financial condition.
Six of the eight credit unions posted net worth of under 7% and all had falling loan, fee or investment income and net income losses over the past five years.
The six credit unions are the $5.6 million Union Settlement Federal Credit Union into the $37 million Lower East Side People's Federal Credit Union, both in New York City; the $5.8 million Oldham Family Alliance Federal Credit Union with the $32 million Members First of Maryland Federal Credit Union, both in Baltimore; the $3.1 million C G H Federal Credit Union with the $14.9 million Alleg-Kiski Postal Federal Credit Union, both in New Kensington, Pa.; the $4 million Chesapeake City Employees Credit Union in Chesapeake, Va., with the $1.3 billion Bayport Credit Union in Newport News, Va.; the $3.7 million Floyd County Postal Employees Credit Union in Rome, Ga., with the $2 billion Atlanta Postal Credit Union in Atlanta, and the $133,036 Langston Federal Credit Union in Langston, Okla., with the $3.2 billion Tinker FCU in Oklahoma City.
The largest merger approved in March was the $606 million Pioneer Credit Union in Green Bay, Wis., with the $480 million Capital Credit Union in Kimberly, Wis. The consolidation was announced in June 2013 and is expected to be completed in July.