Credit Union Turned Bank Poised for Merger
OmniAmerican Bank, the former OmniAmerican Credit Union, will become part of the ninth largest Texas bank by assets if regulators approve its merger later this year.
The Fort Worth, Texas, bank posted assets of roughly $1.4 billion as of Dec. 31, 2013. It announced on April 30 it will merge with the Tyler, Texas-based Southside Bank. Southside reported assets of roughly $3.4 billion in 2013 and will be the surviving institution, according to an announcement from the two banks.
In 2005, the $1.2 billion OmniAmerican Credit Union announced it was converting to a mutual bank charter. This began a long battle with the NCUA, which eventually included litigation, concerning the regulator's rules and oversight of the charter change process.
OmniAmerican won that fight and converted its charter. It then went on to issue stock under a mutual holding company structure and then, eventually, to further convert to a stock issuing bank.
"Both banks have well-aligned community banking philosophies, clean balance sheets, strong boards and seasoned management teams," said Tim Carter, president/CEO of OmniAmerican Bank, who will become president of the North Texas Region for Southside upon completion of the merger. "Bringing together our branch network and Fort Worth presence with Southside Bank's 50 facilities in Texas gives us a dynamic foundation to serve our commercial, mortgage and consumer customers with even greater convenience, expanded product and service offerings, and additional lending capacity. This merger is a great outcome for our company's shareholders and positions us well for sustainable success over the long term."
A spokesman for the bank did not know what percentage of the credit union's leadership or depositors remain currently with the bank.
Former CEO Larry Duckworth died suddenly in 2007 while still at the bank.