The $66 million Cintel Federal Credit Union in Cincinnati, Ohio, is set to merge with the $498 million Connexus Credit Union in Wausau, Wis., on Jan. 1.
Cintel FCU members approved the merger, Connexus said in a prepared statement released Monday.
“The merger is mutually beneficial, allowing Cintel to obtain products and services required for member retention and expansion,” Connexus said in its statement.
“Connexus is seeking growth through diversification and the opportunity to expand into a larger metropolitan area, where they already have a presence,” the statement said.
Connexus CU said it serves nearly 80,000 members in 50 states and operates nine branches in Wisconsin, two branches in New Hampshire and one branch in Ohio.
Once the merger is completed in January, Connexus' branch network will increase to 14, adding two of Cintel FCU's branches.
The merger follows closely the Wisconsin credit union's purchase of auto lending specialist Financial Institution Lending Options LLC and by a year the merger of two other Badger State institutions.
Chartered in 1938, Cintel FCU serves 8,529 members.
Like many small credit unions, Cintel FCU has had financial challenges over the last five years.
The cooperative's loans have fallen from $48 million in 2008 to $42 million in 2012, while its loan income dropped from $2.8 million to $2.4 million in the same years, according to NCUA financial performance reports.
Cintel FCU fee income also fell from $843,315 to $788,612 from 2008 to 2012. The cooperative's investment income dropped as well from $398,731 in 2008 to $97,674 in 2012, NCUA financial performance reports show.
Though Cintel FCU showed net income gains of $22,794 in 2008 and $38,023 in 2012, the cooperative posted net income losses of $421,069 in 2009, $401,142 IN 2010, and $425,223 in 2011. The credit union also had net income losses of $364,449 by the end of the third quarter, NCUA records show.
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