NCUA approved 34 mergers in Q1 of 2020 which increased from 32 last quarter. The combined assets of merged credit unions is $404M, which compares to $1.6B last quarter and $1.3B year ago.
The mean and median assets of merged credit unions are $11.9M and $4.7M, respectively.
There are no acquisitions of credit unions with assets exceeding $100 million this quarter. The largest acquisition is:
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The median size of acquiring credit unions is $209 million. There are six credit union acquirers with assets exceeding $1 billion.
With $3.2 billion in assets, Navy Army Community is the largest acquiring credit union in Q1.
The other continuing credit unions with assets exceeding $1 billion were:
The acquired credit unions on average represent 2% the of the assets of the acquiring credit unions.
The nearest merger of equals is:
There are six credit unions with less than $1 million in assets being acquired. The smallest credit union merger is Bethany Baptist Christian FCU based in Chester, PA with $43,000 in assets.
When seeking regulatory approval credit unions are required to cite the reason for the merger. Of the 32 mergers in Q2, the following reasons were given:
| EXPANDED SERVICES | 27 |
| POOR FINANCIAL CONDITION | 5 |
| CORPORATE RESTRUCTURING | 1 |
| INABILITY TO OBTAIN OFFICIALS | 1 |
| Grand Total | 34 |
The median net worth ratio of the merging credit unions is 14.35%. There are 6 credit unions that have net worth ratios below 7.0%, which is considered undercapitalized.
The delinquent loans-to-total loans ratio averages 8.54%. Eighteen (18) of the 34 merging credit unions reported negative earnings year to date. The mean return-on-assets (ROA) was -1.43% and median -0.30% for Q1 of 2020.
Below is a chart of the NCUA merger approvals for Q1 2020:
