Two Butler County credit unions have filed for a merger with the state Department of Banking, with hopes of approval by the first of the year.

The Deshon Veterans Administration Employees Federal Credit Union, which has about 500 members, wants to merge with the Butler Armco Employee Credit Union, the region's second-largest credit union with more than 18,000 members.

While banks are run by a group of investors, a credit union is member-owned.

"When a credit union profits, that results in higher dividends for members and lower fees," Randy Cypher, Butler Armco's manager, explained on Monday.

Nancy Kummer, who manages the Deshon credit union for employees of the Butler Veterans Affairs Medical Center on New Castle Road in Butler Township, said Monday that credit union members think the Butler Armco organization can provide more benefits than the smaller credit union.

"We are very small, and the Butler Armco credit union will be able to provide many more services for our members. The turnaround time on loans alone should shorten substantially," Kummer said.

"We are very excited about this merger," she said.

The Deshon credit union operates with a volunteer board of directors and three part-time employees.

Meanwhile, the Butler Armco credit union, which opened its doors originally to employees of the Armco Butler Works in 1935, operates from a building on Hansen Avenue with six drive-thru bays. It offers day-to-day banking, loans and financial services and is now open to employees of many regional businesses.

The Butler Armco credit union has more than $161.6 million in assets; Deshon has $1.24 million.

Cypher said the Deshon credit union has found that ever-increasing banking regulation has become difficult to manage with such a small staff.

"It is a matter of paperwork, and the merger will allow us to spread our overhead costs needed to maintain banking regulations as the government requires," Cypher said.