CU Merger Approvals 3Q 2020

Credit Union Merger Approvals 3Q 2020

NCUA approved 34 mergers in Q3 of 2020 which increased from 25 last quarter. The combined assets of merged credit unions is $1.5B, which compares to $777M last quarter and $1.3B a year ago.

The mean and median assets of merged credit unions are $45.1M and $9.8M, respectively.

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


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

  • Sperry Associates Federal Credit Union, located in Garden City Park, NY, which is being merged into Pentagon CU ($25B) in McLean, VA.  Sperry’s has $273M in assets, 8.4% net worth ratio, 1.28% delinquent loan ratio, and 0.33% ROA. 
  • Northstar Credit Union, based in Warrenville, IL, which is being merged into Numark CU ($308M) in Joliet, IL.  Northstar has $205M in assets, 11.2% net worth ratio, 0.72% delinquent loan ratio, and 0.77% ROA.

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The median size of acquiring credit unions is $286 million.  There are six credit union acquirers with assets exceeding $1 billion.

With $25 billion in assets, Pentagon FCU is the largest acquiring credit union in Q3.

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

  • Chartway FCU ($2.2B)
  • ORNL FCU ($2.4B)
  • NuVision FCU ($2.6B)
  • Rogue CU ($2.0B)
  • Idaho Central ($6.0B)

The acquired credit unions on average represent 3.0% the of the assets of the acquiring credit unions.

The nearest merger of equals is:

  • River Valley FCU ($129M) merging into Members Advantage Community CU ($143M), 90% acquiree/acquirer ratio

There are five credit unions with less than $1 million in assets being acquired. The smallest credit union merger is Union Memorial FCU based in Olivette, MO with $90,000 in assets. 


When seeking regulatory approval credit unions are required to cite the reason for the merger.  Of the 34 mergers in Q3, the following reasons were given:

Expanded Services 29
Poor Financial Condition 4
Loss/Declining Field of Membership 1
Grand Total 34


The median net worth ratio of the merging credit unions is 9.05%. There are 7 credit unions that have net worth ratios below 7.0%, which is considered undercapitalized.

The delinquent loans-to-total loans ratio averages 3.73%.  Eighteen (16) of the 34 merging credit unions reported negative earnings year to date.  The mean return-on-assets (ROA) was -0.93% and median 0.12% for Q3 of 2020.

Below is a chart of the NCUA merger approvals for Q3 2020:

NCUA Merger Approvals Q3 2020
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