LAKE JACKSON, Texas -- The president/CEO of Texas Dow Employees Credit Union said Thursday he is "understanding" of the state's scale back this month of the CU's attempt to broaden its field of membership into six Texas counties which included metro Houston's Harris County.

"Because there are federals which have whole counties, we were unaware there were limits on state charters but we will be pursuing alternatives," explained Ed Speed, head of the $1.3 billion TDECU whose extended FOM expansion was denied by Texas Credit Union Commissioner Harold Feeney.

In separate actions on the six TDECU applications, Feeney's office limited the CU to 10 mile limits around several proposed branches but approved broader FOM for facilities in rural Matagorda and Wharton Counties.

Speed said the two branches in those counties to be located in Bay City and Wharton will be opened "by the end of 2009." In accordance with the state's order, new branches for Houston and other locales will fit the 10-mile limit but "we do understand that we can apply for future branches in those counties, each with the 10 mile limit."