The $6.9 million Erie Flagship Community Federal Credit Union in Erie, Pa., merged with the $380 million Erie Federal Credit Union also based in Erie on Nov. 1.
“Our commitment is to create tangible economic value for our members, and we are looking forward to the opportunity to serve the members of Erie Flagship Community FCU,” Erie FCU President/CEO Mary Beth Wilcher said in a prepared statement.
Erie Flagship Community FCU, which served 1,713 members, was chartered in 1947 to serve employees of the Erie City Iron Works and the Erie Engine Company.
Like many very small credit unions, however, Erie Flagship Community FCU had been facing financial challenges with declining loan income over the last five years.
In 2008, the credit union posted total loans of $4.6 million and loan income of $333,668. By 2012, Erie Flagship Community FCU's total loans fell to $3.6 million and its loan income also dropped to $222,013 according to NCUA financial performance reports.
From 2008 to 2012, the Pennsylvania cooperative recorded total net income losses of $312,531, according to NCUA financial performance reports.
What's more, Erie Flagship Community FCU's net worth also dropped from 7.88% in 2011 to 6.07% in 2012. By June 2013, the cooperative's net worth fell to 5.78%.
Chartered in 1936, Erie FCU serves 45,747 members and operates seven branches.
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