November was a slow month for credit union consolidations as theNCUA approved only 17 mergers across 15 states, considerablylower than the 23 NCUA-approved mergers in November 2012, accordingto the agency's latest monthly Insurance Activity Report.

The November figure brings the total number of approved 2013mergers to 231.

Pennsylvania and Wisconsin each posted two approved mergerswhile only one NCUA-approved merger occurred in California,Connecticut, Hawaii, Michigan, Idaho, Illinois, Iowa, Kentucky, NewYork, North Dakota, Tennessee, Texas, West Virginia.

Sixteen of the 17 credit unions had fewer than $50 million inassets, according to the agency's November report. The total valueof the merging credit union assets amounted to $243 million.

While the NCUA approved 10 of the cooperative mergers forexpanded services, the federal agency also approved seven creditunion consolidations because of their poor financial performance,lack of growth, poor management, loss or declining membership, andinability to obtain officials.

Because of poor financial management, NCUA allowed the $1.9million SJH Employees Federal Credit Union in Springfield, Ill., tomerge with the $185 million Land of Lincoln Credit Union in Decatur, Ill.

SJH Employees FCU net worth has declined from 23% from 2008 to9.74% in 2012, well below its peer average of 18%. What's more, thecredit union posted a total net income loss of $270,794 from 2009to 2012, according to NCUA financial performance reports.

The NCUA cited poor management as its reason to allow the $16.5million Menasha Employees Credit Union in Menasha, Wis., toconsolidate with the $1.9 billion Community First Credit Union in Appleton, Wis.

The credit union's net income gains dropped from $100,566 in2008 to $25,121 in 2012, according to NCUA financial performancereports. By Sept. 30, 2013, Menasha posted a net income loss of$149,112.

NCUA data also reveals the credit union's key earnings ratioshave been declining and lagging behind peer averages for the lastsix years.

For example, its yield on average loans fell from 6.45% in 2008to 4.36% in September 2013, below the peer average of 6.12%. Thecooperative's growth in net worth, market share, loans, assets,investments and membership also showed substantial downward trends,according to NCUA financial performance reports.

The $5.1 million Blennerhassett Federal Credit Union in Vienna,W.V., got NCUA approval to merge with the $116 million WestVirginia Central Credit Union in Parkersburg, W.V., because of lackof growth.

NCUA financial performance reports show many of the creditunion's key earnings ratios were below peer averages, such as yieldon average loans (5.87% vs. 7.30%), fee income, (0.07% vs. 0.64%)and net margins, (3.87% vs. 4.19%). Over the last six years,Blennerhassett FCU also showed significant declines in growthratios for net worth, market share, loans, assets, investments andmembership, according to NCUA financial performance reports.

Because of loss or declining field of membership, the NCUA gavethe green light for the $20.9 million Northlands Educators FederalCredit Union in Fargo, N.D., to merge with the $459 million FirstCommunity Credit Union in Jamestown, N.D. The NCUA also approvedfor the same reason the $1.6 million TWE Federal Credit Union inWhitehall, Pa., to consolidate with the $428 million People FirstFederal Credit Union in Allentown, Pa.

Because of the inability to find a new CEO, the NCUA approvedthe mergers of the $42 million Kula Community Federal Credit Unionin Kahului, Hawaii, with the $60 million in Maui Federal CreditUnion, also in Kahului; and, the $2.6 million HD York FederalCredit Union in York, Pa., into the $62 million White Rose CreditUnion, also based in York.