With an average net worth of 14.75%, small credit unions withassets under $20 million are generally well capitalized.

That's the good news, according to the September edition of CUNAMutual Group's Credit Union Trends Report. However, forsome credit unions in this asset group, rising compliance costs andcombined economic and assessment stresses may force them toconsider merger partners. At mid-year, 4,288 credit unions were inthis under $20 million group, down from 4,509 just six monthsago.

At the end of July, there were an estimated 7,978 credit unionsrepresenting a net decline of 252 financial institutions over thepast year including 13 in July alone. Still, the current rate ofindustry consolidation is well below recent trends for year-to-dateand year over year declines, according to the data.