The Houston-area, $37 million Space City and the $20 million Independence Parkway FCU of La Porte, Texas, plan to merge 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 continuing institution.
Discussions have been under way between the two competitors for several months, said Rohden, noting only a preliminary agreement has been signed with regulators.
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 credit unions have strong staff members, according to Rohden. Each operates 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.
This potential consolidation follows Space City’s March 31 merger of the troubled $1 million HHA FCU that served the Houston Housing Authority. Rohden said the regulators had approached Space City about that one.