HOUSTON—About 7,300 members of El Paso Corp FCU, which was forced into a merger because of the last year’s takeover of its corporate sponsor, will share in a $9.5 million merger dividend after the combination of the $125 million credit union with First Service CU.
El Paso Corp. FCU merged with the $335 million First Service on April 1 and the terms of the agreement included giving back the excess capital that the member-owners helped create over El Paso Corp. FCU’s lifetime.
“This merger dividend is a unique achievement that displays the real benefits of credit union ownership,” says David Bleazard, president of First Service CU. “The member-owners of EPCFCU should receive benefit of the capital they helped earn over the lifetime of that credit union.”
El Paso Corp. FCU began searching for a merger mate after its corporate sponsor was acquired in the $21 billion takeover by pipeline giant Kinder Morgan. The Board decided the best course would be combining with Houston-based First Service, a 36-year-old credit union serving energy service providers KBR, Halliburton, CenterPoint, Baker Hughes and over 140 select groups, as well as surrounding Harris and Waller counties.
At March 31, as the merger was being completed, El Paso Corp. FCU had $21.6 million in capital, almost 18%. The $9.5 million payout would have left it with more than $12 million in capital, about 10%.
The combined First Service CU will have approximately $470 million in assets and will serve over 52,000 members via 14 area branches.
