NCUA approves 36 mergers in Q2

Seven of the 36 mergers in the second quarter received the NCUA’s approval to merge because they were unable to find a CEO and/or board members to stay in business, according to the federal agency’s Q2 Merger Activity and Insurance Report. 

The total number of second quarter consolidations was slightly higher compared to the 33 mergers approved during the first quarter and the 35 mergers approved during the second quarter of 2022. 

In addition to the 26 credit unions that received the green light to consolidate for expanded services, including two billion-dollar financial cooperatives, one credit union is merging because of poor management and a second credit union is consolidating because of the lack of sponsor/support. 

The number of credit unions unable to keep their shops open because they could not find a CEO and/or board members has been increasing over the last few years. 

In addition to the seven credit unions that received the OK to merge in the second quarter, three credit unions in the first quarter were also unable to stay open, bringing the total this year to 10. 

In 2022, there were 11 credit unions that were approved to consolidate because of their “inability to obtain officials,” the phrase used by the NCUA, while in 2021 there were four, and in 2020, there was only one. In 2019, however, there were nine.