SECU What's Next? About That Texas Merger...

  Big Hat, No Cattle!

Encouraged you yesterday to take a look at Chip Filson's blog [link] on the Texas Credit Union Regulator's approval of a merger between TDECU and Space City Credit Union.

'Course you didn't listen in on the regulatory meeting, neither did I. Life's too short!

TDECU is the former Dow Chemical employees' credit union with @$5 billion in assets. Space City Credit Union is the former Stewart and Stevenson ( a Texas engineering company) employees'' credit union with @$134 million in assets.

But here's "the raw meet problem" of what's happening nationwide with credit union mergers and misfeasance:

The three top execs at Space City CU will receive a minimum payout of $6.5 million+ to "sell out":

 

✳ One can be sure it was an impartial decision.

Remember this is a small $134 million credit union. Space City Credit Union has only 12,000 members, after 60 years of operation.  Each member is effectively paying $500+ bucks "to get rid of" this management team. 

😎 As an alternative to this "merger mayhem", the 12,000 Space City member-owners could have told the staff "Thank you", sold the credit union, and simply divided up the $19 million in member equity, which they own. 

Each of the 12,000 Space City Credit Union members could have gone home with a check for @$1,500! And if desired, simply go open an account at TDECU for free... since anybody in Texas can join TDECU!

✳ Which choice would you have made...

✅  Coming soon to a credit union near you. 

 

  Is a payout of $500+ bucks per member "industry standard"?

SECU What's Next? Merger Mania... Misappropriation #5.

   SECU Financial?

Trying to ignite your thinking about what the future may have in store for you as an SECU member... and why you should care. 

First lure was to point out the fact that you and your family stand to lose $8,000 to $10,000+ [link] if the bank buyouts, merger mania, insider dealings, and conversions reach your credit union [link]. 

If a stranger were to ask you to simply hand over $8/$10,000, you would question their sanity; if someone simply withdrew $8/$10,000 from your credit union share account you would hopefully consider it fraud. 

Maybe you are of the sort that really could care less about having an extra $10,000 bucks in your pocket - most of us aren't like that! Statewide, would a little $6 billion cash infusion into the North Carolina economy be helpful? 

Want to see these trends in action? Then take a look at our neighbors to the south in Texas [link]:

"Credit unions have historically focused on consumer lending, so having “credit union” in the brand implies a limited scope of what the organization may be able to do. With the word “financial,” it more accurately represents the full range of products and services..."

"... open to additional mergers and acquisitions,”; "... will focus on closing its merger with Space City Credit Union and acquisition of Sabine State Bank & Trust before making any more deals,"; "...‘We would like to partner with you. . .”; "We must grow."

✅ Please take time to read the entire article so we can further discuss what is coming to your credit union.

😎  At 10:00 am [ET] Friday [7/18]:  You might even want to listen in on the Texas credit union regulator's meeting [connect info at bottom of article]. See if their regulators are also " sitting on their as-... e-r-r... hands"

 

  Coming soon to a credit union near you!