PrimeWay FCU Nears NCUA Approval on TexasOne Merger
The $279 million PrimeWay FCU of Houston is nearing regulatory completion for a merger with the ailing $125 million TexasOne Community CU, also of Houston.
A PrimeWay spokeswoman said, "We are waiting on the final paperwork" from the NCUA.
PrimeWay had 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 of this year.
PrimeWay, which began discussions with TexasOne late last year, said the former Cameron CU 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."
TexasOne, which has shrunk from $148 million in assets, most recently reported net worth of 2.08%, according the NCUA. PrimeWay's net worth is 9.90%. PrimeWay itself had a $1.5 million loss in 2009 that it attributed in large part to the corporate assessment.