Succession planning issues push Coastal Teachers FCU to merge
Two credit unions on the Texas Gulf Coast have announced plans to merge.
Coastal Teachers Federal Credit Union in Port Lavaca is seeking members’ approval to merge into Cal-Com FCU, also in Port Lavaca. Coastal Teachers holds just $5.5 million in assets and serves roughly 1,000 members, compared with $162 million in assets and 17,000 members at Cal-Com.
A notice to Coastal Teachers members announcing the merger said that along with improved technology, a wider array of products and services, and larger branch network, the merger would help solve a succession planning issue for the smaller credit union, since some employees there have indicated they plan to retire by the end of the year.
Succession planning is frequently a major contributor to small credit unions electing to merge into larger institutions.
All staff members at Coastal Teachers have been given the option of taking positions at Cal-Com or accepting six months of severance pay if they choose not to. About $46,000 in severance pay would be distributed among three employees, including CEO Claudia Coward, if they elect to take it.
A vote on the merger is expected to be held Oct. 21.
Coastal Teachers lost about $2,500 during the first half of the year, compared with a loss of about $3,800 during the same period last year.