NCUA Approves 25 Mergers in July 2014

Twenty-five(25) credit union mergers were approved by the NCUA in July 2014.

Combined these mergers totaled over $1 Billion in assets. The mean and median asset size of the merged credit unions was $41 million and $11 million, respectively. Continuing credit unions averaged $565 million in assets.

Among the merged credit unions there were two exceeding $300 million in assets. Minneapolis-based Endura Financial Credit Union ($358M) was approved to merge with Wausau-based Connexus CU ($606M). Endura maintains strong financial ratios with 13.7% net worth to assets, 0.71% Delinquent Loans to Loans, and 0.71% ROA.

In a near merger of equals, State Employees Credit Union ($304M) based in Jacksonville, FL received NCUA approval to merge into First Florida Credit Union ($413M). State Employees CU held an exceptionally strong capital ratio of 19.6% and low loan delinquency of 0.15%.

The median net worth ratio of the merged credit unions was 12.36% with the mean slightly higher at 12.75%. The median loan delinquency ratio stood at 0.71%. The mean of 3.4% delinquency was skewed by three smaller credit unions with less than a million in assets having double-digit delinquency ratios.

Nearly three-quarters of the credit unions stated expanded services as the reason for the merger. One credit union indicated inability to find officials as the reason.

Below is a chart of the NCUA merger approvals.