The pace of approved credit union mergers picked upsignificantly during the second quarter of 2015, and California ledthe nation with the largest number of consolidations.

What's more, a noticeable increase in merged credit unions withassets of more than $100 million also took place during the secondquarter, according to the NCUA's Insurance Report of Activity forApril, May and June.

The NCUA approved 71 mergers at the end of the second quarter,up from the 41 consolidations that were approved by the federalagency at the end of the first quarter, bringing the total numberof consolidations for the first half of the year to 112.

That tally is down from the 123 mergers the NCUA approved at theend of the first half of 2014.

California saw the highest number of approved mergers at eight.Illinois was second, with six consolidations. During the firstquarter of the year, the Golden State posted only one merger whileIllinois saw five consolidations, according to the NCUA.

Also in the second quarter, seven credit unions with more than$100 million in assets received approval to consolidate with theirlarger counterparts.

During the first quarter, only two credit unions with more than$100 million in assets received approval to merge, for a total ofnine credit unions in that size category for the first half of2015.

At the end of the first half of 2014, the NCUA approved sixcredit unions with more than $100 million in assets to merge withlarger cooperatives.

However, the NCUA cautions against defining the size of creditunions merging as a trend given the small numbers.

“Our staff does not believe there is a material trend at thismoment of substantially larger credit unions merging into othercredit unions,” John Fairbanks, public affairs specialist for theNCUA, said. “One could reasonably note the larger consolidationsare more likely due to strategic reasons, as opposed to the morepronounced safety and soundness issues that existed during the2008-2009 era.”

Among the 71 credit union mergers approved by the NCUA during the secondquarter, about 95% were under $50 million in assets.

The federal agency green-lighted 53 mergers for expandedservices, seven for poor financial condition, four for lack ofsponsor, two for poor management, two for lack of growth and threefor the inability to find a new CEO.

Read more about second quarter merger trends in theAug. 26, 2015 print issue of CU Times.