Two Houston-area credit unions, the $37 million Space City and the $20 million Independence Parkway FCU of La Porte, Texas, are plotting a merger this summer.
The proposed combination of the two healthy credit unions represents perhaps a special phase in mergers of small equals, declared Craig Rohden, president/CEO of Space City, the expected survivor of the consolidation.
Discussions have been under way between the two competitors for several months, said Rohden, noting only a preliminary agreement has been signed with the credit unions.
Eventually, the proposed merger would require full member and regulatory approval.
“I think it is important to remember that it is not just the $300-$400 million credit unions that are undertaking the mergers but it is also credit unions of our size that see the viability in combined growth,” said Rohden.
Both CUs have similar capital ratios (Space City at 7.5% and Independence at 10-11%) with well qualified staffs, said Rohden. Both credit unions have two branches with Space City serving 5,300 members and Independence Parkway 2,700.
“This is a merger that comes at the right place and the right time for both of us,” said Rohden.
The Independence Parkway consolidation, once approved, would follow Space City’s expected competion Saturday of the merger of the low-capital $1 million HHA FCU that serves the Houston Housing Authority.
That takeover is one “where we had been approached by regulators,” said Rohden.