LOS ANGELES — First City Credit Union and SCE Federal Credit Union announced an intent to merge late last week, making the combined $785 million institution the latest Southern California credit union to merge its way to more favorable economies of scale.

Dennis Huber, CEO $430 million SCE, will carry on as CEO of the surviving First City. $356 million First City has been without a permanent chief exec since late last year, when former CEO Steve Punch left to take the top job at $1 billion Pacific Service Credit Union in Northern California.

Both credit unions have reported decreases in ROA for 1st quarter 2008, with SCE additionally reporting increases in delinquencies, charge-offs and loan loss provisions. However, Huber said his loan portfolio doesn't require a bail-out; instead, both credit unions are after better economies of scale. And, the combined branch network will be a big benefit for both memberships.