Tennessee credit union members may have heard that although credit unions continue to merge, the rate of these types of transactions has slowed considerably since 2012. A strategic partnership is often the goal of this kind of market consolidation, so it is possible that with more financial institutions already working together, there is not as much of an advantage in merging the remaining players. Whatever the reason for the slowdown, just 17 mergers were approved in February 2014, according to a recent report from the National Credit Union Administration. This is a step down from the 20 approved in the same month of 2013 and the 19 approved in February 2012.
The approved February 2014 mergers were between 17 credit unions in 13 states, all but one of the entities possessing less than $50 million in assets. Only two of the institutions were given the okay to consolidate due to financial problems, the NCUA report stated. The other 15 mergers were intended to provide expanded services to the credit unions' members. The largest merger of the month was between Ohio's FirstDay Financial Federal Credit Union, which holds $83.9 million in assets, and Ohio-based River Valley Credit Union with assets of $226 million.