SALT LAKE CITY — Citing the need to modernize its product line and tech capacity, the $265 million Salt Lake Credit Union is planning a merger with the $2.4 billion Mountain America FCU, also of Salt Lake.

The 26,500 members will vote on the merger proposal Wednesday.

Salt Lake CU, founded 67 years ago to serve city employees, said the expanded branching powers of Mountain America and its broader service mix plus ATM penetration were factors in the decision to merge. Talks between the two CUs started five years ago.

Salt Lake CU has 10 branches while Mountain America has 50.

Orla Beth Peck, supervisor of CUs at the Utah Department of Financial Institutions, said the merger “is a voluntary one” and reflects the national trend of smaller CUs being consolidated with larger brethren. “There's a merger of a small credit union every day across the U.S.,” observed Peck.

In a statement, Karen Wiley, chairman of Salt Lake CU, said directors “believe this partnership will be extremely beneficial for all members and provide convenience an added strength that the partnership adds.”

Mountain America said the merger process will take “several months” and require approval by the state, NCUA and a review by the Federal Trade Commission.