Security One Federal Credit Union of Arlington and Texas Trust Credit Union of Mansfield today announced plans to merge, in a deal that will give the combined credit union assets of $815 million.
The two credit unions have signed intent to merge with the Texas Credit Union Department and the National Credit Union Association. Once the merger is approved by regulators and by Security One members, Security One will transfer its assets and liabilities to Texas Trust.
The combined credit union will have assets in excess of $815 million and more than 65,000 members, making it the 18th largest credit union in Texas and the 264th largest in the U.S., according to a news release from the two credit unions.
According to the news release the merger benefits the members of Security One by bringing additional services to its members, and will give Texas Trust a bigger Arlington presence. The merged financial institution will have 12 branches, counting the two existing Security One branches, which will be brought under the Texas Trust name upon completion of the merger.
“Competing in today’s financial market is more challenging than ever,” said Pamela Stephens, CEO of Security One Federal Credit Union. “In order to remain competitive and continue to deliver low rates for our members, we determined the best solution for our members was to merge with another credit union.”
Stephens said she and Texas Trust CEO Jim Minge had been discussing collaborative initiatives for several years. “As the economy recovers we’ve seen regulatory demands and operating costs go up, but operating margins and rates we earn on our investments are really low, so it made sense to look at collaborative ways to deal with that,” she said.
Stevens will become part of the Texas Trust management team when the merger is complete. The merged credit union will take on the Texas Trust name. The 25 employees of Security One will join the Texas Trust Credit Union team, giving the combined organization 239 employees if the deal closed today.
Among the services that the merger makes available to current Security One members are Texas Trust’s mobile and online banking, an expanded surcharge-free ATM network, an in-house loan department offering mortgages and auto loans, as well as investment products and services. Texas Trust also has an independent insurance agent and small business financial services, including SBA lending.
For Texas Trust members, the merger will provide two additional branches in Arlington, said Minge. Texas Trust has been expanding its presence in the past year, adding branches in Grand Prairie, Mansfield and Hurst. The two leaders say they expect the merger to be completed by the end of the year.