Credit unions add most underserved communities in July

ALEXANDRIA, Va.-Credit unions added the most underserved areas so far this year during the month of July, according to the latest NCUA data. Fifty-four underserved areas were added to credit unions’ fields of membership in July for a 63.5% approval rating. Deferred underserved areas totaled 31 (36.5%) and no applications were denied. The number of potential members from these underserved areas came to 3,105,525, also a monthly high for 2002. Through the end of July, 251 underserved areas have been added with $2.3 million potential members. Mergers also heated up in July. While 26 approved mergers was not the highest number yet this year, the assets of the federal credit unions merging totaled over $144 million, a monthly record for 2002. Federal and state charters broke even with 13 mergers each, NCUA’s data showed. The assets of the state chartered credit unions came to more than $75 million. During July, NCUA recorded two conversions from a federally insured state chartered credit union to a federal credit union totaling more than $10.6 million in assets. Two federal credit unions converted to federally insured state chartered credit unions with $325 million in assets. Five credit unions, with nearly two million in potential members, converted to community charters for only a 31.3% approval rating. None were denied, but 11 (68.8%) were deferred.