Mergers Spike in November, Another Airline CU TIPs

ALEXANDRIA, Va.-November 2004 saw 38 credit union mergers, the most in at least the last three years, according to NCUA’s Insurance Report of Activity in that time period. Of the 38 mergers, 29 of the merged credit unions were under $10 million in assets. Nine were under $1 million, November 2004′s report showed. On a brighter side, two new credit unions were chartered. Kappa Alpha Psi Federal Credit Union was established in Dallas, Texas with 15,700 potential members. Additionally, Star Credit Union formed in Madison, Wis. serving 1,000 potential members. Federal credit unions continued to take in large underserved areas in November. The largest underserved area granted was to Sunwest Federal Credit Union in Phoenix for the city of Tucson, Ariz., population 507,658. Other areas included 288,981 potential members for Ouachita Valley Federal Credit Union and two underserved areas totaling 285,382 for LA DOTD Federal Credit Union in Baton Rouge, La. As the airline industry continues to suffer following 9/11 and the subsequent security issues, yet another airline credit union, Continental Federal Credit Union, sought refuge in the TIP-trade, industry, profession-charter. The $187 million credit union in El Segundo, Calif. had more than 84,000 members at the time of conversion. Large community charter conversions also continued to be approved at the regional level. Dallas Telco Federal Credit Union was given a community charter serving over 2.2 million, while New Cumberland Federal Credit Union received a community charter for more than 1.1 million.