A planned merger between two western Connecticut credit unions has been called off.

Shelton-based Mutual Security Credit Union has withdrawn its application to merge with Merritt Federal Credit Union in Wilton. The institutions had applied for the merger in September with state and federal regulators. Mutual Security notified the Connecticut Department of Banking earlier this month that it was withdrawing the application.

Mutual Security President Henry Baum declined to speak with The Commercial Record about the decision. Baum last year had said that combining the credit unions would result in a more robust and diversified portfolio of products and increase access to locations in western Connecticut.

Merritt FCU had $11.38 million in assets as of March 31, according to National Credit Union Administration data, and a net loss of $26,000 in the first quarter. Mutual Security had $325.6 million in total assets and first quarter net income of $144,000.

As of publication time, the Department of Banking had not returned a request for more information.