In its first merger in three years, the $480 million FirstCommonwealth Federal Credit Union of Lehigh Valley, Pa., hascompleted a consolidation of the ailing Dixie Cup Employees FCU ofEaston.

The merger of the $1.2 million Dixie Cup does fit ongoingproblems of small CUs “in Pennsylvania and elsewhere coming underpressure” of market conditions, said Jo Ann Broderick,president/CEO of First Commonwealth.

Dixie Cup, with 500 members and serving employees of theproducts firm in nearby Forks Township, “had been asked by NCUA toseek a merger partner,” said Broderick. Talks with Dixie Cup CU hadbegun last April. The CU had a net loss of $45,000 in 2009 and itslosses through the third quarter were at $43,000.

First Commonwealth is not specifically looking for furthermergers in 2011, said Broderick, stressing her CU is prepared tocontinue providing financial assistance to struggling PennsylvaniaCUs.

“There was a chapter meeting yesterday of the Pennsylvania [CU]Association in which small credit union officers did indeed voicetheir fears about large credit unions merging them,” saidBroderick, emphasizing that her CU has no predatory goals.

First Commonwealth, the largest CU in the Lehigh Valley and44,000 members, has branches in Allentown, Bethlehem, Easton,Fogelsville, Kutztown and Lehighton.