The NCUA approved twenty (20) mergers in September 2014 which is down slightly from the previous two months.
The combined assets of the merged credit unions are $393 million. The mean and median assets of merged credit unions are $19.6 million and $8.7 million respectively.
Nearly half of the merged assets are due to one credit union, Bay Winds Federal Credit Union. Charlevoix, MI-based Bay Winds has assets of $179 million, Net Worth-to-Assets ratio of 11.25%, and an ROA of 1.13%.
The median size of acquiring credit unions is $183 million. Navy FCU, the largest acquiring credit union with assets exceeding $60 billion, is merging Elizabeth City Coast Guard Employees FCU, which has $3 million in assets.
The median net worth ratio of the merging credit unions is 13.6%. Two credit unions, Three I CU and Winnebago County Schools CU, have net worth ratios below 7%.
The delinquent loans-to-total loans ratio averages 1.7%, which is primarily attributed to two credit unions with delinquency ratios exceeding 5% of loans.
Over half the credit unions report losses year to date. Consequently the mean return-on-assets (ROA) is -0.46% year through June of this year.
Expanded Services is cited as the primary reason for merging by all but three credit unions.
Below is a chart of the NCUA Merger Approvals for September:
