The $14.9 million McKee Credit Union in Collegedale, Tenn., merged with the $1.8 billion Western Federal Credit Union in Manhattan Beach, Calif., on Nov. 1, according to a statement released by Western FCU Monday.
Like many very small credit unions, McKee CU has had financial challenges with declining loan income over the past five years. In 2008, the cooperative posted loan income of more than $331,000, which dropped to just over $231,000 in 2012, according to NCUA financial performance reports.
Though McKee CU posted a net income gain of $51,607 in 2008, it also recorded net income losses from 2009 to 2012 totaling $215,968. Its net income losses have continued through 2013 totaling $79,470 as of Sept. 30, according to NCUA financial performance reports.
In a prepared statement, McKee CU said its members voted by an overwhelming majority for the merger in October. The credit union also said its sole location will continue operating.
Chartered in 1992, the credit union serves the financial needs of McKee Foods Corp. employees, which manufactures the Little Debbie snack food cakes. The cooperative has 4,345 members.
McKee CU is now part of Western FCU’s national network of 42 branches in 11 states serving more than 170,000 members, according to Western FCU’s website. With the McKee CU merger, Western FCU now has a presence in 12 states and operates 43 branches.
Western FCU operates 25 branches in California, five in Arkansas, three in Virginia, two in Kentucky and one in Alabama, Colorado, Indiana, Michigan, Tennessee, Texas, Utah and West Virginia.