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.
