Houston, TX.
TDECU, Houston’s largest credit union, and Smart Financial Credit Union, one of the city’s oldest credit unions, announced this week that they plan to merge by the first quarter of 2026.
If approved by regulators and Smart Financial members, the combined organization would manage $5.6 billion in assets and $4.9 billion in loans, employ over 1,000 people, operate 48 branches, and serve more than 459,000 members.
TDECU President and CEO Isaac Johnson will lead the merged entity. Smart Financial President and CEO LeAnn Kaczynski will stay on as chief integration officer for one year to oversee the merger and ensure a seamless transition for members and employees.
“This merger is not a sudden development, but the result of conversations over several years,” Kaczynski said. “A partnership between TDECU and Smart Financial is strategic in so many ways as both organizations complement each other and bring a variety of unique strengths to the table. Combining our team with the equally exceptional staff at TDECU, positions us to create something very special. I look forward to working closely with Isaac and the TDECU team to ensure a smooth and successful integration.”
Smart Financial members can expect to receive communication regarding the voting process in early December.
“This partnership isn’t just about growing. It’s about affirming what it means to be a credit union in today’s world by renewing our focus on efficiently delivering value and opportunity for our members and the communities we serve,” Johnson said.
This is TDECU’s second merger this year. On June 1, it finalized a consolidation with the $134 million Space City Credit Union in Houston. When TDECU announced this consolidation last September, it planned to rename itself Space City Financial Credit Union.
On June 3 TDECU called off its proposed acquisition of the $1.3 billion Sabine State Bank & Trust Co. in Many, La.
“The regulatory process just became too long,” Johnson said in a CU Times interview. “So for the continued health of both organizations and clarity to the market we decided to mutually walk away and mutually terminate the agreement ... because going to an almost two-year regulatory approval process, it just wasn't prudent for either organization.”
TDECU has since delayed its rebranding and strategic shift to focus instead on other credit union merger opportunities within the Houston market.
Peter Strozniak can be reached at pstrozniak@cutimes.com.
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