MADISON, Wis. (3/22/13)--Continuing a trend of consolidation in the credit union industry, several credit union mergers and acquisitions have been announced or completed across the nation in March.
Northwest Community CU in Springfield, Ore., with $766 million in assets, announced the completion of its merger with Coos Educators CU in Coos Bay, Ore., with 14 million in assets.
Coos Educators' lone branch began operating March 16 as Northwest Community CU. For smaller struggling credit unions, a merger can fulfill commitments to loyal members and improve access to financial services, Northwest Community said in release.
"We chose to pursue a potential merger with Northwest community CU as a way to strengthen our organization during a challenging economy, and ensure continued service of excellence for our members," said former Coos Educators FCU Board Chair Chuck Inman. "We chose Northwest Community CU because of its long history of caring about the local communities they serve, and their successful track record as a stable organization."
Other recent mergers and acquisitions include:
- Houston-based InvesTex CU, with $117 million in assets, plans to purchase a Houston branch of Star Trust FCU's (formerly Enron FCU, which once serviced the now-defunct Enron Corp.) StarTrust has $51.6 million in assets. The acquisition is subject to regulatory and member approval.
- The $1.89 billion asset Summit CU, based in Madison, Wis., said it is acquiring Milwaukee-based Veteran's Administration CU (VACU), with $14.8 million in assets (Milwaukee Business Journal Online March 19). The acquisition is slated for completion in September and is contingent on approval of regulators and VACU membership.
- Kinecta FCU in Manhattan Beach, Calif., with $3.17 billion in assets, Wednesday absorbed Inglewood, Calif.-based I.C.E. FCU, which was liquidated March 15 by the National Credit Union Administration. NCUA determined I.C.E. was insolvent and had no prospects of restoring viable operations (CUinsight.com March 20).
- Plymouth, Minn.-based TruStone Financial FCU (formerly Teacher FCU), with $861 million in assets, announced an agreement March 1 to merge with Ladish Community CU (formerly Ladish Employees CU) in Cudahy, Wis., with $13.4 million in assets. Starting April 1, the combined entity will operate as TruStone Financial FCU (Marketline March 4 and PlymouthPatch March 6).
- A merger of $32.7 million asset U.S. Coast Guard Community CU in Baltimore into Tower FCU, based in Laurel, Md., with $2.52 billion in assets, was approved by Coast Guard Community members at the end of last month (Washington Business Journal Online March 5). The proposed merger is scheduled to be finalized by June 30, pending regulatory approval (SNL.com March 2).