United Financial Credit Union will be merging the $34 million Consumers Choice CU on Jan. 1. Both credit unions are based in Saginaw, Mich.

The merger caps years of discussions between the two CUs and follows a Consumers decision to expand its service menu, said Jessica Gwizdala, director of marketing and training at the $115 million United Financial.

“Consumers Choice has an older membership of many savers and fewer borrowers and so its management felt it was not big enough to continue on its own and needed to find a partner,” said Gwizdala.

The 4,200 members of Consumers Choice approved the merger plan Dec. 2 with a 75% favorable vote. Consumers Choice, organized to serve a Michigan energy firm, has one office.

The combined entity will serve 20,000 with a total of six branches in Saginaw and Bay counties. Consumers Choice has 12.25% net worth though it lost $96,000 in 2009 and $74,000 through the first three quarters of 2010.