The $8.7 million, 3,116-member Southern Illinois Area Credit Union in Swansea, Ill., will merge at the end of the year with the $186 million, 23,639-member Arsenal Credit Union in Arnold, Mo., the credit unions said.
Like many small credit unions, SIACU has been struggling financially with declining loan, fee and investment income. The cooperative’s net worth fell to 6.37% on June 30, from 7.34% in December 2012, according to NCUA financial performance reports.
From 2008 to 2012, SIACU posted a total net income loss of $412,068, NCUA financial performance reports show.
The merger was approved by state and federal regulators, the credit unions said. SIACU’s membership voted in favor of it recently, according to a statement released Thursday by both credit unions.
“The merger is a tremendous opportunity for both credit unions. We share a similar mission of helping people with their personal finances and giving back to the communities we draw our lives from, so it’s a natural fit,” said Linda Allen, president/CEO of Arsenal CU.
Post merger, SIACU’s five employees will be retained and the cooperative’s sole branch in Swansea will remain open the announcement said.
Arsenal will be making improvements to the branch, starting with a drive-up ATM that will be added in early December. In addition, the Swansea branch will be set up to serve as a shared branch that members of other credit unions will be able to use, according to the joint statement.
SIACU was chartered in 1936 and served the financial needs of residents in 14 counties as well as businesses, municipalities and labor unions.