In 2024, federally-insured credit unions registered their smallest 4-quarter asset increase (just 2.3%) in quite some time.

Those looking to grow, however, have found ways to do so.

In this week's issue we look at 50 credit unions that grew significantly more than that industry average in 2024.

Credit Unions on a Shopping Spree

Federally-insured credit unions reported an increase in assets of just 2.3% in 2024. That was the smallest 4-quarter increase for the industry in quite some time. The 50 federally-insured credit unions listed on page 5, however, each grew significantly more than that. How they did so is where it gets interesting.

5-Star Texas Plains FCU, Amarillo, TX, (3828) was one that grew organically. Texas Plains FCU is celebrating its 85th anniversary with a new branch in Amarillo. It is also promoting a “Share the Love” $25 bonus referral for new members.

That may be because, while its assets grew over 23% in 2024, its membership slipped (-0.85%). That’s not much, but it is the wrong direction, especially when you’re building new branches. Today, Texas Plains FCU has six offices, and indicates there will be more soon.

Organic growth was the exception to the rule though. Most of the institutions listed on page 5 got there by way of acquisition. For example, on March 1, 2024, 5-Star Pasadena Federal CU, CA, (594) acquired the neighboring $155 million asset Pasadena Service FCU.

This transaction doubled the credit union’s branch network from three branches to six; it increased membership by 78% (to just under 25,000) and grew assets by almost 30%. Pasadena FCU is also now a community credit union; it’s open to several Los Angeles County cities.

Another growing by way of merger was 5-Star Alive Credit Union, Jacksonville, FL (67316). Alive CU acquired the City & Police FCU, also of Jacksonville on April 1, 2024. It will use the combined resources to grow, strengthen and innovate. The combination resulted in a 42% increase in membership and asset growth of 63%.

Alive CU now operates through 11 branch offices, ten in Jacksonville and the other in Hammond, Louisiana. Perhaps that’s an indication of future expansion sites.

This next one is a little convoluted. It starts in Battle Creek, MI, where School Employees Credit Union was established in 1936. School Employees CU changed its name in 1999 to the slightly broader United Educational Credit Union name. That was it… for a while.

In January 2016 the name was changed again. This new name, BlueOx Credit Union, was totally unrelated to education.  The credit union was clearly set to expand. And it did.

On October 1, 2016, BlueOx CU acquired United VIP Credit Union, Sterling Heights, MI. Less than two years later (January 1, 2018) it acquired Jackson Community FCU, Jackson, MI and three months later, Tower Family CU, Kalamazoo, MI joined the BlueOx family. In January 2020, it welcomed another credit union, Bi-County PTC FCU, Warren, MI. The stage was set.

By 2021, BlueOx Credit Union had assets exceeding $200 million. The institutions it had acquired were small; they were also struggling. Taking time to roll them carefully into the fold was prudent and it paid off.  BlueOx maintained its recommended status, (5-Stars or 4-Stars) through it, and it continues to do so.

Although today, it is no longer BlueOx. On July 1, 2024, BlueOx Credit Union, which by then had $227 million in assets, acquired the $154 million asset 4-Star Ignite Credit Union, Grandville, MI, and took its name. Later in the year, this new Ignite Credit Union also acquired 5-Star Latvian Heritage FCU, Grand Rapids, MI adding another roughly $3 million in assets.

Today, we have 5-Star Ignite Credit Union (62072), still headquartered in Battle Creek, MI, but now with over $360 million in assets, 13 offices membership exceeding 31,000. Think it’s done? Don’t bet the farm.

Speaking of serial acquirers, 3-Star Blaze Credit Union, Falcon Heights, MN (68651)has roots that go back to the height of the Great Depression. Two groups formed cooperatives to help each other reach their financial goals. One was in Falcon Heights, the other in Saint Paul, MN. Combined, they acquired 16 other credit unions, until eventually, at the close of 2023, the two merged with each other.

Clearly, the days of keeping their money in an old metal cash box were well behind them. On January 1, 2024, Hiway Credit Union, which by this time had $1.7 billion in assets, was merged into the $2.1 billion asset Spire Credit Union. The name was changed simultaneously to Blaze Credit Union.

Blaze CU is not sitting around waiting for the dust to settle. It opened a new branch in March 2024 in Princeton, another inside of Cub Foods in Stillwater last summer, and yet another in Plymouth in October.

With over $4 billion in assets, this was by far the largest credit union merger of 2024, and it was a lot to digest. In fact, as a result of the integration, Blaze Credit Union is now only “Adequately Capitalized”. It also has a new CEO. Former President, Dave Boden, retired in July and has been replaced by Dan Stoltz.

Before we wrap this up, we’d also like to mention that the two institutions on page 5 that are highlighted in yellow were among those that completed acquisitions of banks in 2024. We will have more to say (a lot more) on that subject next week.