MADISON, Wis. (4/23/13)--Mergers of credit unions have occurred at a pace of nearly one a day the past year, according to the National Credit Union Administration (NCUA) .
Buddy Gill, senior adviser to NCUA Chairman Debbie Matz, made the statement during a discussion of the "New NCUA" at a recent meeting with credit unions hosted by the Northwest Credit Union Association in Portland, Ore. (Anthem Recap April 19).
Most are the mergers are voluntary mergers, he said. He indicated that cumulative regulatory burdens may play a significant role in the decision of small credit unions to merge to achieve economies of scale to be competitive, reported NWCUA.
"Regulatory burdens are costing small financial institutions money and time that could be better spent providing benefits to the member," said John Trull, NWCUA director of regulatory advocacy. "The NCUA recognizes this, but other regulatory agencies impacting credit unions may not," Trull added.
In the past couple of weeks, nine states reported credit unions either applying to merge or getting approval to merge. Among them:
California: Community First CU, Santa Rosa, with $150 million assets and 15,627 members, has applied to the California Department of Financial Institutions for approval to merge with Health Care Professionals of Napa FCU, Napa.
Hawaii: Two Honolulu based credit unions, TheoDavies FCU and $157 million asset Hawaii Central FCU, merged April 2. HCFCU now serves more than 14,000 members with more than $170 million in assets.
Idaho: Potelco United CU, Pocatello, will merge with an unnamed Boise area credit union on June 1 and take on the name Connections CU (Idaho State Journal April 20).
Illinois: Carbondale-based SIU CU, with $254.5 million assets, completed its merger with $6.8 million asset Southeastern Electric Employees CU on April 1. The merger adds 1,100 members to SIU CU's 31,000 and adds one branch to total six branches.
Massachusetts: North Shore Manufacturers FCU, with $5 million assets in Beverly, Mass., will become a branch of $1 billion Hanscom FCU, Hanscom AFB, Mass. A second merger, between Worcester-based AllCom CU with $58 million assets and Worcester Postal CU, $9.8 million assets, is to be completed July 1 (Banker & Tradesman April 9).
Minnesota: Park Schools CU, with 8.5 million assets in St. Louis Park, Minn., merged April 1 with $132 million asset United Educators CU, Apple Valley, Minn. Park Schools served 1,314 members; United Educators served 12,976 members.
Pennsylvania: Two Chambersburg credit unions--Community of Healthcare Employees CU with $7 million assets and Patriot FCU with $441.9 million assets--plan to merge June 1, pending member and regulatory approval (SNL Bank and Thrift Daily April 2).
Utah: In Ogden, $61 million asset SummitOne FCU will merge with $187 million asset Wasatch Peakes FCU on July 1. SummitOne employees approved the merger earlier this month.
Wisconsin: Price CU, Prentice, a $31 million asset credit union with 5,974 members, will merge April 30 with Heritage CU, Madison, with $225 million in assets and 22,751 members.