The messaging about the merger “became confused,” Rosa acknowledged. He said Jefferson Financial might have explained to members more clearly “how this kind of credit crisis had weakened” Main Street over the past three years and that a merger would work out well.

The Baton Rouge CU had lost $2 million in 2010 after absorbing large hits on corporate investments but had shown a small profit through the first three quarters of 2011.

Main Street Financial has 5,300 members and in December saw its president, Cary Anderson, step down.

“We are a healthy, well-capitalized credit union, knock on wood, but a partnership with Main Street would have created an important statewide credit union,” said Rosa, whose CU serves a suburban New Orleans market.

Somehow, there was a breakdown in communication as the two boards tried to put forward the merger, Rosa said, defending a move by Main Street Financial, criticized by some members, to close a Lake Charles branch.

That decision, said Rosa, was made to cut costs and Main Street retains nearby facilities to serve that market.

Officials close to the negotiations said the vote also may have been affected by what Rosa said were rumors that many Main Street Financial employees would lose their jobs in a merger.