The so-called cleansing theory – that there are too many underperforming or heavily capitalized small or midsize credit unions that need to be merged by larger brethren – is coming in for fresh debate this summer.
From Illinois to Virginia, credit union executives have been putting the rubber to the road this spring, joining a host of local and national bike marathons and in the process contributing to successful charity fundraisers.
The merger game – its timing, procedures and practices – is coming in for new scrutiny and debate this month among a coterie of analysts and top credit union CEOs.
CU leaders want update on agency actions in capitalization and provider services.
Some industry sources are privately pointing to the weekend conservatorship of the $139 million Family first FCU of Orem, Utah as signaling perhaps a new NCUA policy of protecting the NCUSIF as it bypassed big CUs as a merger suitor.
NCUA policy on selection of merger partners for both voluntary and involuntary mergers is coming under harsh new scrutiny this month. The now-completed Utah consolidation is the focal point of both concern and controversy marked
Ron Burniske, CEO of Chartway Federal Credit Union has strongly defended his CU's mergers with ailing Utah credit unions against critics in that state who say NCUA gave them short shrift
Chartway Federal Credit Union, headquartered in Virginia Beach, will press its out-of-state expansion arrangements with NCUA, according to its CEO Ronald Burniske.
The $1.5 billion Chartway Federal Credit Union in Virginia has made good on a month-old NCUA pledge to merge with a troubled Utah credit union and thereby expand to a 10-state footprint.
With its NCUA Utah merger deal under its belt, the $1.5 billion Chartway Federal Credit Union of Virginia is still bent on scouting out more struggling CUs in the West and Midwest for possible acquisition.