More CU Giants Absorb Troubled Credit Unions

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ALEXANDRIA, Va. – NCUA reported yesterday it has cleared several more credit union giants to merge into them troubled smaller institutions, accelerating the trend towards greater consolidation of the credit union movement.

NCUA approved: the acquisition by $2.8 billion Hudson Valley FCU of troubled $52 million Putnam FCU; the merger of $2.7 billion DFCU Financial with ailing $182 million MidWest Financial CU; the combination of $2.7 billion Wings Financial CU with troubled $40 million Highgrove Community FCU.

Also approved was the acquisition by $2 billion Affinity FCU of Rutgers University Student and Alum FCU; and by $1.1 billion HawaiiUSA FCU of MediCredit FCU.

The deals follow within days recent agreements by $1.6 billion Chartway FCU to acquire the remnants of failed $150 million Southwest Community FCU in Utah; and of $6 billion Texas credit union giant Security Service FCU to acquire the assets of failed $125 million Norbel Community CU in Colorado.

NCUA is seeking to have the biggest, well-capitalized credit unions, such as Chartway and Security Service, absorb the troubled credit unions as a way to minimize the costs to the National CU Share Insurance Fund.

NCUA also approved mergers eliminating several other small troubled credit unions, including: Hamden (Conn.) FCU; Fairfield (Conn.) University Employees FCU; First Delta FCU and Reco CU.

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