A proposed merger of the $32.8 million Eaton County EducationalCredit Union in Charlotte, Mich., with the $2.3 billion Michigan State University Federal Credit Union in East Lansinghas been approved by the credit unions' boards.

The credit unions said Thursday they are seeking approvals fromECECU's members as well as state and regulatory agencies.

“Due to the current economic climate and recent financiallegislation, many smaller credit unions are finding it impossibleto earn income and grow financially,” said Ken Huber, ECECU'streasurer/manager. “In order to best serve our members, ECECU'sboard of directors recognized that we needed to partner withanother credit union.”

Although ECECU's assets have been steadily increasing from $26million in 2008 to $32 million in 2012, its income has beendecreasing.

The 3,900-member credit union's year-to-year loan income hasdropped from $815,874 in 2008 to $704,568 in 2011, according toNCUA financial performance reports. In addition, ECECU has seendeclines in its investment and other income streams, those reportsshow.

“MSUFCU and ECECU have a shared commitment to helping membersachieve financial success, and I am excited for the newopportunities this proposed merger provides for members of bothcredit unions,” said Patrick McPharlin, president/CEO of the 169,000-member MSUFCU,the nation's largest university-affiliated credit union.

“ECECU members will gain expanded account access and servicesalong with greater financial strength and stability for theiraccounts, and the 11,000 MSUFCU members already residing in EatonCounty will receive the added convenience of an established branchin Charlotte,” McPharlin said.