Wealth Adviser Partnership
Texas Dow Employees Credit Union has entered into an alliance to assist with growing its retirement and estate planning services division.
TDECU's new arrangement follows by more than two years its creation of a holding company to bring all of its CUSOs under one roof,
The $2 billion credit union in Lake Jackson, Texas, said its subsidiary, TDECU Wealth Advisors, has partnered with James E. Bashaw & Co., a financial services firm in Houston that offers financial planning, insurance and retirement planning services. In addition, JEB&Co. will provide compliance and back-office operational support, according to TDECU.
“Our wealth advisers team has been very successful at helping our members plan and prepare for the future, and we want to take it to an even higher level as our members deserve the best,” said Stephanie Sherrodd, president/CEO of TDECU. “Working with JEB&Co. will help make that happen much faster by combining our resources and talents.”
Marcie Casas, TDECU spokeswoman, said there was “miscommunication communicated” in a local article that implied that the credit union was planning to sell TDECU Wealth Advisors to JEB&Co., she told CU Times on Feb. 28 before an official response was emailed on March 2.
The credit union did not provide further details on whether the new partnership with JEB&Co. would impact current staffing at TDECU Wealth Advisors or what would happen to the relationships with current member-clients.
In 2011, through the launch of TDECU Holdings LLC, the credit union said it would be bringing its CUSOs – TDECU Insurance LLC, TDECU Wealth Advisors, TDECU Real Estate LLC and Century Oaks Title LLC – under one roof to make the management of the entities more efficient and transparent, TDECU said at the time.
According to TDECU's NCUA December 2013 Call Report, TDECU Holdings LLC had more than $16.2 million in assets and $11.6 million in capital in all of its CUSOs. The total aggregate cash outlays in its CUSOs were $3.9 million at the end of last year and total net income was $2.3 million.
TDECU Wealth Advisors was previously known as TDECU Investments and said it was planning to add 10 to 15 more financial advisers in the Houston area in 2012 when the holding company made its debut. The credit union did not provide information on if those advisers were hired and if the JEB&Co. partnership would result in any layoffs at TDECU Wealth Advisors.
In 2013, TDECU said it expanded its presence significantly in the Houston market with 18 branch locations available to serve those who live and work in the area. Particularly, indirect lending and merchant lending helped with those expansion plans when loans in each area reached $402 million and $26 million, respectively, in 2012.
Over the past few years, TDECU Insurance Agency LLC has bought several insurance agencies.
In 2011, TDECU also completed a merger with the $80 million Bluebonnet Credit Union and the $60 million San Jacinto Credit Union.
During the same year that TDECU announced the creation of the holding company, the credit union made industry headlines when it severed ties with the Texas Credit Union League and CUNA for several reasons including what it described as a lack of volunteer governance on the league and national boards, a decline in educational content and what it considered to be too close ties with industry groups promoting credit card and bankruptcy reform.
On Oct. 1, 2012, TDECU President/CEO Ed Speed retired after 10 years at the helm. In a July 2012 op-ed in CU Times, Speed explained in more detail the reasons why the credit union disaffiliated from CUNA including “disappointment with the unending vitriolic attacks on credit union regulators that seem to dominate every meeting.”
Speed also warned that “CUSO failures have the potential to have all of us paying NCUSIF impairment premiums indefinitely.”