The boards of directors for the $4.1 billion Keesler Federal Credit Union in Biloxi, Miss., and the $715 million Jefferson Financial Federal Credit Union in Metairie, La., said Wednesday they plan to create what they say is “the largest credit union merger in Louisiana and Mississippi history.”

If the consolidation gets approved by the NCUA and Jefferson Financial members, the combined organization would include a workforce of 900 employees who would manage $4.8 billion in assets and $3.6 billion in loans based on third quarter financials. They would also run 55 locations across Louisiana, Mississippi, Alabama and the United Kingdom and serve more than 416,000 members.

Although Jefferson Financial currently holds a net worth of 10.75, it has been struggling financially over the last two years, NCUA financial performance reports showed.

At the end of 2022, the credit union posted a loss of $1,215,826 and a loss of $549,362 at the end of last year.

In the third quarter of this year, Jefferson Financial recorded a loss of $6,923,323, and an ROAA of -1.26, according to NCUA financial performance reports.

Although the credit union saw a loan growth of more than 17% in 2022, loans dropped by 8.38% in 2023. Loans continued to fall by more than 11% in the first quarter of this year, and by 8% in both the second and third quarters, according to NCUA financial performance reports.

Membership at Jefferson Financial also dropped by 3.50% and 5.60% in 2022 and 2023, respectively. In the first three quarters of this year, membership continued to fall by 6.54%, 5.25% and 5.96%, respectively, according to NCUA financial performance reports.

However, the leaders of both cooperatives said the synergies of the merger make sense.

Both credit unions, for example, bring strong records of service to members and the communities they serve, noted Jefferson Financial Federal President/CEO Mark Rosa.

“Keesler Federal and Jefferson Financial Federal share a culture of service,” he said in a joint prepared statement. “Our members will continue to enjoy the hands-on service they are accustomed to and will now have even more options available to them.”

Moreover, Keesler Federal operates seven locations in the greater New Orleans region and holds high-profile sponsorships of professional sports franchises with the NFL’s New Orleans Saints and the NBA’s New Orleans Pelicans.

If the merger receives regulatory and member approvals, Keesler Federal will operate 21 Louisiana locations stretching from New Orleans and the river parishes to Baton Rouge.

“From a business perspective, it is a great fit that will strengthen both institutions and allow greater accessibility and services. It’s a win-win for our members,” Keesler President/CEO Andrew Swoger said in a prepared joint statement.

Keesler is the largest financial cooperative, by assets, in Mississippi, according to a DepositAccounts.com listing. If the consolidation is approved, Keesler will become the largest financial cooperative in Louisiana that is not headquartered in that state. Currently, the largest credit union that is headquartered in the Pelican State is the $2.4 billion Barksdale Federal Credit Union in Bossier City.