The $5 million, 1,049-member North Shore Manufacturers FederalCredit Union in Beverly, Mass., has merged with the $1 billion,48,671-member Hanscom Federal Credit Union in Hanscom Air Force Base,Mass.

NSMFCU merged with Hanscom FCU because it was becomingincreasingly difficult for the very small credit union to compete,the credit unions said. It also struggled financially over the pastfew years.

In 2012, the credit union posted a net income loss of $86, 925following a loss of $11,816 in 2011, according to NCUA financialperformance reports. Even though NSMFCU had a net income gain of$10,188, in 2010, it lost $85,652 in 2009. NSMFCU ended 2012 with anet worth of 7%, but it posted a ROAA of -1.59%, according to NCUAfinancial performance reports.

“In this time, when many smaller credit unions struggle tosurvive, NSMFCU had the foresight to seek out a merger partner thatcan continue to provide a stable, strong platform,” said PaulMarotta, chair of the board of directors for Hanscom FCU.

Hanscom FCU serves members across the country and overseasthrough 16 branches.

“In this competitive landscape, we wanted to ensure ourmembers continue to receive first-rate service from a strong creditunion,” said Gary Prendergast, president of NSMFCU's board ofdirectors.

“We chose Hanscom FCU because it offers a wide range of productsand services and has an excellent reputation for high servicelevels. In addition, Hanscom FCU already serves employees at highlytechnical organizations, such as employees onHanscom AFB and other locations, so we feel they will be agreat fit for our members,” Prendergast said.

NSMFCU has served manufacturing industry employees for more thanfour decades. It was founded on Nov. 15, 1967 and posted $867 indeposits from 88 members by February 1968.

The credit union was opened to offer financial services toemployees at Varian/Bomac, a developer and manufacturer ofmicrowave tubes and components. It grew to serve several employergroups along Massachusetts' north shore.

The merger took place on April 1.