Sponsor Gone, Merger Planned in Houston
After losing its sole sponsor last year, the $124 million, 7,908-member El Paso Corporation Federal Credit Union in Houston is proposing to merge into the $333 million, 45,763-member First Service Credit Union in Houston.
After Kinder Morgan Inc. purchased El Paso Corp. in May 2012, the credit union was informed it would lose its sole corporate sponsor.
EPCFCU’s board of directors decided to look for a merger partner that “would allow for a continuation of service and the payment of an appropriate merging dividend to our members,” Kourtney Calhoun, president/CEO of EPCFCU, wrote in a letter to members earlier this month.
Calhoun said the EPCFCU board has unanimously voted to recommend the merger with FSCU.
Members will soon be receiving a voting packet to approve or reject the proposed merger. Regulatory approvals also must be secured from NCUA and the Texas Credit Union Department.