The $41 million Cowlitz Credit Unionin Longview, Wash., plans to merge into the $581 million Red Canoe Credit Union, also based in Longview, by September,according to a Cowlitz CU prepared statement.

“It's becoming increasingly difficult to keep up with newregulations and the fast-paced technological developments in ourindustry,” said Larry Anderson, Cowlitz board chair. “The boardunanimously agreed that turning back to an old friend made the bestsense for our membership.”

Like many small credit unions, revenues at Cowlitz had eitherbeen flat or declining.

Loan income has slightly fallen from $1.2 million in 2009 to$1.1 million in 2013, while in the same years, fee income alsodropped moderately from $328,879 to $308,068, according to NCUAfinancial performance reports.

The cooperative's investment income, however, has plummeted from$456,251 in 2009 to $140,105 in 2013.

Cowlitz CU was established in 1957 as Cowlitz CountyEmployees Credit Union. During its early days, the credit union wasmanaged by Red Canoe Credit Union (then known as WeyerhaeuserCredit Union), although the two credit unions kept their assetsseparate.

As Cowlitz grew, it hired a CEO to oversee operations, but RedCanoe “has always been a strong local partner and friend,” Andersonsaid.

“The consolidation of assets will result in more-efficientoperations and capital management, which is a better use of ourmembers' money,” Anderson said. “Plus, we will be able to offer awider array of products and services, including technologyconveniences that can be cost-prohibitive for smaller credit unionsto offer. Overall, this is a win-win for both credit unions.”

David Spaulding, Red Canoe's president/CEO, said all 15 Cowlitzemployees will keep their jobs and that Cowlitz also will keep oneseat on Red Canoe's board of directors.

“We are excited for the opportunity to serve the Cowlitz CreditUnion membership,” Spaulding says. “It makes good sense for ourorganizations to come together to better serve both of ourmemberships as one financial cooperative.”

Cowlitz serves 4,500 members and Red Canoe serves more than54,000 members.

An intent-to-merge application is being processed by theWashington's Department of Financial Institutions. Followingregulatory approval, Cowlitz members will vote on the proposedmerger.

That vote is expected to take place this spring, said Amy Davis,Red Canoe's vice president of marketing. If approved, theconsolidation would be complete by September.