Texas Credit Unions to Merge
The $7.4 million TrustUS Federal Credit Union in Midlothian, Texas said Monday that it will merge in September with the Arlington, Texas-based, $918 million Texas Trust Credit Union.
The consolidation was approved by TrustUS members and regulators, according to a prepared statement.
TrustUS, formerly Texas Industries Employees Credit Union, which was founded in 1956, decided to merge after it lost its sponsorship when Texas Industries was sold to Martin Marietta Materials Inc. in 2014. Texas Industries produced cement and aggregate products for the construction industry.
TrustUS served 2,401 members.
Like many small credit unions, TrustUS was struggling financially, posting a 6.89% net worth and a -2.03% ROAA at the end of the first quarter, according to NCUA financial performance reports.
Although the credit union held a net worth of 7% to 8% from 2011 to 2015, its ROAA was in negative territory during four out of the last five years.
“This merger will make us a stronger financial partner for TrustUS members,” TrustUS President/CEO Lisa Lemon said. “We’ll now be able to offer products and services to meet the financial needs of our members at every stage of their life.”
Texas Trust said it will retain TrustUS’s six employees and open a new full-service branch in Midlothian, making it Texas Trust’s 16th branch.