ALEXANDRIA, Va. — Mergers continue to roll through credit union land as community charter conversions and underserved area adoptions move at a snail's pace.
Twenty-six mergers took place during the month of November 2006, which actually included more merging credit unions over $10 million in assets than those under $1 million. The largest merging institution was $109 million Seaboard Credit Union in Jacksonville, Fla. with $209 million First Florida Credit Union. Expanded services was given as the reason for the merger.
Just four community charter conversions took place, two of which were over one million new potential members, but were also duplicative of previous credit unions. River City Federal Credit Union was granted a community charter covering all of Bexar County in Texas. Additionally, NCUA approved a community charter for Bronco Federal Credit Union, serving Isle of Wight and Southampton counties, Virginia, including the cities of Franklin, Chesapeake, Norfolk, Portsmouth, Suffolk, and Virginia Beach.
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North Jersey Federal Credit Union was approved for a 1.4 million potential community charter expansion for Passaic and Bergen Counties.
Only five underserved area additions were approved during November, two of which were for Power Federal Credit Union, a $300 million credit union in Buffalo, N.Y., a total of 423,868 potential members. These types of additions have slowed considerably since NCUA issued a moratorium–and eventually a final rule–barring non-multiple common bond credit unions from adopting underserved areas following a lawsuit by the American Bankers Association. NCUA and the credit union trades are working to get that authority reinstated for all federal credit unions.
Additionally, NCUA granted the conversion of Members Choice Credit Union from a federally insured state chartered credit union to a federal credit union. –[email protected]
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