Credit Union Merger Approvals 1Q 2021

NCUA approved 33 mergers in Q1 of 2021 which increased from 37 last quarter. The combined assets of merged credit unions is $1.7B, which compares to $3.5B last quarter.

The mean and median assets of merged credit unions are $52.9M and $15.5M, respectively.

To view the largest mergers nationally, by region, or state since 2000 can be found at


There are eight acquisitions of credit unions with assets exceeding $100 million this quarter.  The largest acquisitions are:

  • Infinity Credit Union, located in Portland, ME, which is being merged into Deere Employees CU ($1.3B) in Moline, IL.  Infinity has $338M in assets, 10.2% net worth ratio, 0.72% delinquent loan ratio, and 1.04% ROA. 
  • Coulee Dam Credit Union, based in Coulee Dam, WA, which is being merged into Spokane Teachers CU ($4.1B) in Liberty Lake, WA.  Coulee Dam has $180M in assets, 7.0% net worth ratio, 0.08% delinquent loan ratio, and 0.59% ROA.


The median size of acquiring credit unions is $1.6 billion.  There are 10 credit union acquirers with assets exceeding $1 billion and 5 credit union acquirers with assets below $100M.

With $27 billion in assets, Pentagon FCU is the largest acquiring credit union in Q3.

The other continuing credit unions with assets exceeding $1 billion were:

  • Empower FCU ($2.4B)
  • Deere Employees CU ($1.3B)
  • Community Choice CU ($1.4B)
  • Indiana Members CU ($2.6B)
  • Tennessee Valley FCU ($2.0B)
  • Spokane Teachers CU ($4.1B)
  • Valley Strong CU ($2.2B)
  • Sandia Laboratory FCU ($2.9B)
  • Rivermark Community CU ($1.1B)

The acquired credit unions on average represent 3.2% the of the assets of the acquiring credit unions.

The nearest merger of equals is:

  • Construction Industries CU ($157M) merging into First Nebraska CU ($166M), 95% acquiree/acquirer ratio
  • Winthrop-University Hospital CU ($30M) merging into New York University ($32), 93% acquiree/acquirer ratio.

There are 3 credit unions with less than $1 million in assets being acquired. The smallest credit union merger is Bacharach Employees CU based in New Kensington, PA with $145,000 in assets. 


When seeking regulatory approval credit unions are required to cite the reason for the merger.  Of the 33 mergers in Q3, the following reasons were given:

Expanded Services24
Poor Financial Condition5
Lack of Sponsor Support4
Grand Total33


The median net worth ratio of the merging credit unions is 10.15%. There are 9 credit unions that have net worth ratios below 7.0%, which is considered undercapitalized.

The delinquent loans-to-total loans ratio averages 1.02%.  Twenty (23) of the 33 merging credit unions reported negative earnings year to date.  The mean return-on-assets (ROA) was -2.38% and median -0.51% for Q1 of 2021.

Below is a chart of the NCUA merger approvals for Q1 2021:

Credit union merger approvals 1Q 2021

Credit Union Acquisitions of Banks

Bank consolidation was at approximately the same pace as credit union mergers.  There was a total of 35 bank acquisitions announced in the first quarter of 2021.  Two of the bank acquisitions were by credit unions.  In March 2021, VyStar Credit Union announced the acquisition of Heritage Southeast Bank, with $1.6B in assets and 22 branches.  The transaction was reported with a Price/Tangible Book of 183% and Price/Earnings multiple of 43.6, according to S&P Global Market Intelligence.  Deal price was not reported in Wings Financial CU’s of Brainerd Savings and Loan.

Following is a deal summary of the credit union acquisitions of banks as well as consolidated information on all bank acquisitions in the quarter:

Bank Acquisitions 1@2021