Two small credit unions are merging with billion dollarcooperatives in Washington and Mississippi.

In Washington, board members of the $4.9 million DarigoldFederal Credit Union of Shoreline and the $1 billion Sound Credit Union of Tacoma have unanimously approved a mergeragreement between the two organizations.

In Mississippi, the $4.8 million Mississippi Department ofTransportation Federal Credit Union in Jackson will merge with the$2.1 billion Kessler Federal Credit Union in Biloxi on March 31.

The proposed merger between Darigold FCU and Sound CU must beapproved by state and federal regulators as well as the 1,137members of Darigold FCU.

Founded in 1952, the credit union serves employees of Darigold,one of America's largest dairy farm cooperatives representing morethan 500 family farms across the Northwest. Darigold FCU alsoserves the financial needs of producers and members of theNorthwest Dairy Association and those who live or work inShoreline.

“Darigold FCU is a strong, stable credit union,” RichardBrandsma, president/CEO of Sound CU, said in a prepared statement.“We're excited for this opportunity and look forward to serving themembers of Darigold Federal Credit Union.”

Although Darigold posted a net worth of nearly 19% last year,well above peer average of 14%, the cooperative, like many smallcredit unions, has experienced financial challenges over the lastfive years, according to NCUA financial performance reports.

Darigold FCU's total loans held steady at about $2.5 millionover the last five years, but its loan income revenues declinedfrom $221,546 to $202,302 from 2009 to 2013, NCUA financialperformance reports show.

Though investment income dropped from $103,182 in 2009 to$23,599 in 2013, the cooperative's increased its fee income from$13,194 to $18,693 over the last five years.

Darigold FCU, however, posted net income losses totaling$333,398 from 2009 to 2013.

Chartered in 1941, the Mississippi Department of TransportationFCU also experienced financial challenges over the last fiveyears.