The number of credit unions is shrinking, but the number of members served is steadily on the rise. It's a long-term trend that may see an up tick due to a bumpy economic recovery.

Forty years ago, some 23,866 U.S. credit unions provided 20 million Americans with basic financial services. As of June 2009, there were 7,991 credit unions with 91.8 million members, according to statistics compiled by the Credit Union National Association.

What happened to nearly 16,000 credit unions? Some were liquidated, with member deposits covered by insurance, if necessary. A few had a shotgun wedding with another credit union arranged by a government regulator. But most credit unions voluntarily merged. These partnerships form for any number of reasons:

• A credit union with members from a single manufacturer that's closed down may merge with a credit union whose charter specifies a field of membership in a broad geographic area.
• A credit union with a single location may seek a partner credit union with a network of branch offices.
• A small credit union that loses its manager to retirement cannot afford the talent it needs to prosper and looks to combine forces with a credit union with a strong management team already in place.
• In Augusta, Maine, the board of directors of KV Federal Credit Union voted to convert to a bank, in order to merge with a local savings bank, in order to provide "new service offerings" such as investment management, trust, and business services, according to credit union documents. Because credit unions are member-owned, that merger, just as a credit union merging with another credit union, must be approved by its members.

Some credit union consultants who specialize in facilitating mergers report an increase in inquiries and predict mergers will increase because of the economy. But according to the National Credit Union Administration (NCUA), the agency that regulates federal credit unions and administers the federal insurance fund, 116 credit unions completed mergers in the first six months of 2009, a slower pace from the 260 mergers in 2008 and 255 in 2007.

Members faced with a vote on a merger need to consider whether it's in their best interest. Ask why the credit union is merging:

• Is it because laid-off members are not paying back their loans and the credit union is having to dip too deeply into reserves to cover the losses?
• Has the credit union expanded its number of offices so rapidly that it needs new members to use them?
• How will any savings from economies of scale be returned to members?
• What's in it for you, the member?

After all, it's your credit union. Be a part of its future by becoming involved.