Faced with the mounting challenges of remaining competitive, members of the financially struggling $7.2 million Southwestern Telco Federal Credit Union of Roanoke, Va., voted earlier this week to merge into the $116 million Blue Eagle Credit Union also of Roanoke.
The merger is scheduled to be completed Sept. 3.
“This was the toughest decision our board has made, but we felt that it was the right decision for our members,” said Becky Crosswhite, SW Telco FCU board president. “We love our members and want to see them prosper. We want them to have the very best financial tools available, and we found it increasingly challenging to provide competitive services in today’s highly competitive financial market.”
SW Telco FCU’s loan, fee and investment income has been declining over the past five years. Though it showed a net income of $29,565 and $4,664 in 2008 and 2010, respectively, the credit union posted a total net loss of $135,344 in 2009, 2011 and 2012, according to NCUA financial performance reports.
Chartered in 1968, SW Telco FCU served 1,409 members who work at several telecommunications companies, other local businesses and those who live or work in nearby counties.
“I’m always saddened when a small credit union closes its doors. It’s almost impossible for small credit unions to survive these days when they have to do everything larger credit unions do with a fraction of the resources,” said Blue Eagle Credit Union CEO Jeff Thompson. “We’re honored the SW Telco FCU members chose Blue Eagle Credit Union and trust us to serve their financial needs. We’re looking forward to getting to know our newest credit union family members.”