The $31.2 million West Coast Federal Employees Credit Union in Sarasota, Fla., merged with the $587 million USF Federal Credit Union in Tampa earlier this month.
West Coast Federal said it decided to merge after identifying challenges that could affect its ability to maintain and increase membership value.
Like many small credit unions, West Coast Federal has seen its total loans and loan income decline. In 2012, the credit union managed total loans of $13.8 million, which declined to $9.6 million at the end of 2016. Likewise, its loan income fell from $903,000 in 2012 to $628,000 in 2016, according to NCUA financial performance reports.
Nevertheless, West Coast Federal managed to turn a net income gain in four out of the last five years except in 2015, when it posted a net income loss of more than $51,000.
At the end of the first quarter in 2017, the credit union posted a net worth of 12.53%, above the peer average of 12.41% and a -0.21% ROAA, lower than the peer average of 0.23%, according to NCUA financial performance reports.
West Coast Federal projects that the merger is expected to yield more than $750,000 in operating expense savings in the first three years.
Marie Peet, the last president/CEO of West Coast Federal, is serving as the Sarasota Manatee division president of USF.
Chartered in 1948, West Coast Federal served 2,569 members.
The combined credit union manages $618 million in assets and serves 59,256 members.
