The $77 million, 10,545-member SIR Federal Credit Union inNegaunee, Mich., will merge with the $463 million, 40,016-memberHonor Credit Union in Saint Joseph, Mich., according to anHonor CU statement.

Pending approvals from state and federal regulators as well asthe SIR FCU membership, the merger is scheduled for completion inApril 2014, Honor CU said.

Both credit unions are financially sound. SIR FCU posted a networth of 9.16% while Honor CU recorded a net worth of 10.49% as ofJune 30, according to NCUA financial performance reports.

Loan income at HonorCU grew from $9.6 million in 2008 to $14.5 million in 2012,while loan income at SIR FCU posted a slight decline from $3.2million in 2008 to $2.8 million in 2012, according to NCUAfinancial performance reports. Both credit unions recorded strongincreases in fee and investment income.

Chartered in 1948, SIR FCU has about 37 employees and operatesthree branches in Michigan's Upper Peninsula.

“The membership will have more products/services to choose fromand the cost of complying with the new federal regulations won'ttake away from our bottom line,” SIR FCU said in a statement to itsmembers.

SIR FCU also said it plans to submit an application to become astate-chartered credit union.

Honor CU, chartered in 1934, has about 160 employees andoperates 12 branches in western Michigan.

Post merger, SIR FCU's branches will continue to operate and thecooperative's employees will be retained, said Kaylee Williams,Honor CU's public relations coordinator.

Ronald Lauren, president/CEO of SIR FCU, will become thenorthern division president for Honor CU after the merger iscompleted, Williams said.