The $66 million Cintel Federal Credit Union in Cincinnati, Ohio,is set to merge with the $498 million Connexus Credit Union inWausau, Wis., on Jan. 1.

Cintel FCU members approved the merger, Connexus said in aprepared statement released Monday.

“The merger is mutually beneficial, allowing Cintel to obtainproducts and services required for member retention and expansion,”Connexus said in its statement.

“Connexus is seeking growth through diversification and theopportunity to expand into a larger metropolitan area, where theyalready have a presence,” the statement said.

Connexus CU said it serves nearly 80,000 members in 50 statesand operates nine branches in Wisconsin, two branches in NewHampshire and one branch in Ohio.

Once the merger is completed in January, Connexus' branchnetwork will increase to 14, adding two of Cintel FCU'sbranches.

The merger follows closely the Wisconsin credit union's purchase ofauto lending specialist Financial Institution Lending OptionsLLC and by a year the mergerof two other Badger State institutions.

Chartered in 1938, Cintel FCU serves 8,529 members.

Like many small credit unions, Cintel FCU has had financialchallenges over the last five years.

The cooperative's loans have fallen from $48 million in 2008 to$42 million in 2012, while its loan income dropped from $2.8million to $2.4 million in the same years, according to NCUAfinancial performance reports.

Cintel FCU fee income also fell from $843,315 to $788,612 from2008 to 2012. The cooperative's investment income dropped as wellfrom $398,731 in 2008 to $97,674 in 2012, NCUA financialperformance reports show.

Though Cintel FCU showed net income gains of $22,794 in 2008 and$38,023 in 2012, the cooperative posted net income losses of$421,069 in 2009, $401,142 IN 2010, and $425,223 in 2011. Thecredit union also had net income losses of $364,449 by the end ofthe third quarter, NCUA records show.