Bananacoast Community Credit Union has reported a modest 2.6 per cent increase in profit to $5.2 million for the year ending June 2007, impacted by the merger with Big River Credit Union and the increasingly competitive market."In today's competitive market, and considering the merger which definitely affected profit due to costs, we are happy with the result," said Ray Battle, CEO at Bananacoast."The five branches up there, (formally part of Big River CU) are really beginning to fire, and topping the credit union's most profitable branches."Currently BCU has 21 branches, with the November 2006 opening of Bundall on the Gold Coast the first foray into the Queensland market, with a five year plan of more Queensland coastal locations to come.The credit union is placed in a strong position with member deposits $155 million higher than member loans at $755 million, with residential lending the highlight increasing 10 per cent to $437 million.Battle said increased competition from bigger lenders resulted in the commercial lending book falling 6.5 per cent for the year to $160 million.The expense to income ratio decreased slightly to 78.5 per cent, with Battle adding the reduction was due to a combination of improved profit and a cap on costs."If you go back through the years the ratio was 70 per cent, and strategically we aim to get back there."Operating income increased 4.7 per cent to $35.5 million, with expenses increasing 3.8 per cent to $27.8 million.Bananacoast Community Credit Union, based in Macksville, began in 1970 as the Nambucca Banana Growers Federation Members Credit Union. It has 55,000 members.