Credit Unions
North Haven, Connecticut-based Connex Credit Union disclosed a data breach involving roughly 172,000 individuals' personal information, including names, account numbers, debit card information, Social Security numbers, and government IDs. The credit union notified the Maine attorney general's office on Aug. 7 and said it has no reason to believe member accounts or funds were accessed without authorization. Connex launched an investigation after unusual activity on June 3 and identified affected individuals by July 27. It has set up a call center, is offering a year of free credit and identity protection through CyberScout, and warned customers about scammers impersonating employees. The credit union notified the National Credit Union Administration and federal law enforcement.
Metairie, Louisiana-based OnPath Credit Union will acquire Covington-based Heritage Nola Bancorp and its subsidiary Heritage Bank of St. Tammany in an all-cash deal worth $26 million, the companies announced Thursday. OnPath will also reimburse Heritage Bank up to $2 million for its liquidation account payout and up to $1 million for Heritage Nola Bancorp's tax liabilities. The transaction is expected to close in the second quarter of 2026. This follows a failed merger between Heritage Nola and MC Bancshares in 2024. Heritage Nola shareholders are expected to receive between $20.00 and $20.75 per share. OnPath has over $1.1 billion in assets. The deal is the ninth whole-bank credit union deal announced this year, raising concerns from the Independent Community Bankers of America about tax-exempt credit unions acquiring taxpaying community banks.
U.S. District Judge Amir Ali reinstated two Democratic NCUA board members, Todd Harper and Tanya Otsuka, fired by President Trump in April. The ruling rejected the government's claim of absolute removal authority, citing the board's fixed six-year terms and the precedent for independent financial regulators. The decision restores a quorum, allowing the NCUA board to vote on policy and enforcement actions. The case is part of a broader pattern of legal challenges to Trump's firings at independent agencies.
San Francisco Federal Credit Union will acquire Summit Bank in an all-cash deal expected to close in Q1 2026, adding three branches in Oakland, Emeryville, and Walnut Creek. The credit union plans to retain bank employees and enhance digital tools and commercial services. The deal marks the eighth credit union-bank purchase this year and the second in California in 2025. Terms were not disclosed. Summit Bank, the oldest woman-founded bank in California, has about $4.5 million in assets. The acquisition has drawn criticism from the ICBA over credit unions' tax exemption.
Seven Democratic senators, led by Ruben Gallego, sent a letter to CFPB Acting Director Russ Vought demanding details on the June termination of a consent order against Navy Federal Credit Union. The order, issued in November under Biden-era director Rohit Chopra, required Navy Federal to pay a $15 million civil penalty and $80.6 million in restitution for illegal overdraft fees. The senators request the full legal and factual basis for the termination, information on communications between Navy Federal and the CFPB, and details on unpaid restitution and penalty funds. They also question whether the CFPB's Office of Servicemember Affairs was consulted, contrasting the termination with the bureau's April memo prioritizing servicemembers. The letter cites concerns from former CFPB enforcement director Eric Halperin and asks how the termination aligns with the bureau's stated priorities. The CFPB under Vought has dropped several cases and reversed other consent orders, including against Bank of America and Trustmark Bank.
The Consumer Financial Protection Bureau (CFPB) has terminated its overdraft fee-related consent order against Navy Federal Credit Union, waiving any alleged non-compliance. The order, issued under former director Rohit Chopra, had required the credit union to pay over $95 million, including $15 million in civil penalties and $80 million in refunds. The termination, signed by Acting Director Russ Vought, did not provide a specific reason. Navy Federal stated it complied with all laws and believes the decision was appropriate. The CFPB also terminated an order against Fay Servicing and has recently taken similar actions to vacate other Biden-era consent orders, including those against Bank of America and Trustmark Bank, and amended an order against Wise. The agency is also undergoing significant workforce reductions and funding challenges.
The NCUA liquidated Aldersgate Federal Credit Union of Marion, Illinois, and Butler Heritage Federal Credit Union of Middletown, Ohio, within two days. Aldersgate was closed for unsafe and unsound practices, while Butler Heritage was liquidated after determining insolvency was imminent. These closures bring the total number of credit unions liquidated by the NCUA in 2025 to four. The NCUA is currently operating with a single board member after President Trump fired two Democratic board members in April.
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Sens. Elizabeth Warren and Maxine Waters sent a letter Friday to NCUA Chair Kyle Hauptman demanding clarification on the board's legal authority to carry out agency procedures without a quorum after President Donald Trump fired board members Todd Harper and Tanya Otsuka on April 16. The lawmakers cited concerns raised in the NCUA inspector general's response, noted that the board cannot fully function with one member given statutory quorum requirements, and questioned 11 Board Action Memorandums processed since the firings. They requested a response by July 7.
Idaho Falls-based Frontier Credit Union will acquire First Citizens Bank of Butte, adding $75 million in assets and a branch to its $700 million footprint, with the deal expected to close by the end of 2025. The transaction is the sixth whole-bank acquisition by a credit union this year and the third in the past month, drawing criticism from the Independent Community Bankers of America over credit unions' tax exemption.