The $279 million PrimeWay FCU of Houston said this week it "is just waiting on the final paperwork" from the NCUA to complete a merger of the ailing $125 million TexasOne Community CU, also of Houston.
PrimeWay announced in March a preliminary agreement to consolidate TexasOne, which suffered back-to-back losses of $2.8 million in 2009 and $4.7 million the year before. It also lost $655,000 in the first quarter.
PrimeWay, which began discussions with TexasOne late last year, said the Houston CU, formerly Cameron CU and with 20,000 members, will retain its name and logo through the end of 2010.
"The extra months will provide the organization time to combine operations and create a smooth transition for their respective members with members seeing the value immediately in areas such as loan rates and decreased fees," explained Dale Roberts. "By first quarter 2011 when we have converted our core systems, members will have access to all of the joint locations and a larger product offering."
A PrimeWay spokeswoman said NCUA has given "verbal" approval for the merger with final paperwork dated June 1.
TexasOne, which has suffered large loan losses over the years and has shrunk from its former $148 million size, most recently reported net worth of 2.08% with PrimeWay at 9.90%.
PrimeWay itself had a $1.5 million loss in 2009, which it attributed in large part to the corporate assessment.
"PrimeWay is currently showing positive loan growth posting $527,000 earnings through the end of April," said the spokeswoman.
