NCUA Approves 20 Mergers in September 2014

The NCUA approved twenty (20) mergers in September 2014 which is down slightly from the previous two months.

The combined assets of the merged credit unions are $393 million. The mean and median assets of merged credit unions are $19.6 million and $8.7 million respectively.

Nearly half of the merged assets are due to one credit union, Bay Winds Federal Credit Union. Charlevoix, MI-based Bay Winds has assets of $179 million, Net Worth-to-Assets ratio of 11.25%, and an ROA of 1.13%.

The median size of acquiring credit unions is $183 million. Navy FCU, the largest acquiring credit union with assets exceeding $60 billion, is merging Elizabeth City Coast Guard Employees FCU, which has $3 million in assets.

The median net worth ratio of the merging credit unions is 13.6%. Two credit unions, Three I CU and Winnebago County Schools CU, have net worth ratios below 7%.

The delinquent loans-to-total loans ratio averages 1.7%, which is primarily attributed to two credit unions with delinquency ratios exceeding 5% of loans.

Over half the credit unions report losses year to date. Consequently the mean return-on-assets (ROA) is -0.46% year through June of this year.

Expanded Services is cited as the primary reason for merging by all but three credit unions.

Below is a chart of the NCUA Merger Approvals for September: