The $22 million Kilowatt Credit Union of Madison, Wis., will merge into the $195 million Heartland Credit Union in Madison on Aug. 1.

“As a small credit union, KCU has struggled to become profitable for more than two years,” KCU said in a statement to its 3,681 members.

“The low interest rate environment has produced decreasing loan income and decreasing investment income,” the statement said. “Complying with ongoing government regulations has increased expenses. Our longtime members retire and close their KCU account to consolidate funds closer to home. New members are young and look for new technology to be added, another expense.”

Over the past five years, loan and investment revenues have been declining for KCU. As a result, its net income slid from $103,418 in 2008 to $1,928 in 2010. In 2011 and 2012, the credit union posted a total net income loss of $130,446, according to NCUA financial performance reports.

KCU President/CEO Nicki Troia will retire on Aug. 1. Two other employees will be offered positions at HCU.

KCU's sole branch and ATM will close post merger.

KCU was chartered in 1935 as the General Office Credit Union to provide financial services to employees and families of the Alliant Energy Corp. and other communities. In 1952, the credit union changed its name to Kilowatt Credit Union.