The NCUA said it approved 20 mergers in June, just one more from the 19 consolidations that were approved in June 2013.In the first six months of the year, the NCUA gave the green light to 123 mergers. That tally is down slightly from the 132 consolidations the federal regulator approved by the end of the first half of 2013. By the end of June 2012, 114 mergers were approved. According to the June Insurance Report of Activity recently posted on NCUA’s website, 12 credit unions received approval to merge for expanded services, three for loss or declining field of membership, two for poor financial performance, two for lack of sponsors and one for poor management.
All but three of the merged credit unions managed well under $50 million in assets, the report revealed.
The NCUA report showed that one of the two largest credit union mergers occurred in California where the $130 million, 11,017-member South Western Federal Credit Union in La Habra was approved to merge with the $710 million, 63,532-member Credit Union of Southern California in Brea. When finalized, the merger will increase CUSC’s assets to more than $840 million and bring its membership up to more than 74,000.