The $6.9 million Erie Flagship Community Federal Credit Union inErie, Pa., merged with the $380 million Erie Federal Credit Union also based in Erie on Nov. 1.

“Our commitment is to create tangible economic value for ourmembers, and we are looking forward to the opportunity to serve themembers of Erie Flagship Community FCU,” Erie FCU President/CEOMary Beth Wilcher said in a prepared statement.

Erie Flagship Community FCU, which served 1,713 members, waschartered in 1947 to serve employees of the Erie City Iron Worksand the Erie Engine Company.

Like many very small credit unions, however, Erie FlagshipCommunity FCU had been facing financial challenges with decliningloan income over the last five years.

In 2008, the credit union posted total loans of $4.6 million andloan income of $333,668. By 2012, Erie Flagship Community FCU'stotal loans fell to $3.6 million and its loan income also droppedto $222,013 according to NCUA financial performance reports.

From 2008 to 2012, the Pennsylvania cooperative recorded totalnet income losses of $312,531, according to NCUA financialperformance reports.

What's more, Erie Flagship Community FCU's net worth alsodropped from 7.88% in 2011 to 6.07% in 2012. By June 2013, thecooperative's net worth fell to 5.78%.

Chartered in 1936, Erie FCU serves 45,747 members and operates seven branches.