NCUA Approves Another Small CU to Merge Without a Member Vote
Factory shutdown leads Waconized FCU in Texas to consolidate with 1st University CU, which serves Baylor University employees.
The NCUA has approved the merger of a Texas credit union without a member vote, a second credit union consolidation the federal agency green lighted within the past month.
On Dec. 26, an NCUA spokesperson said the $2.9 million Waconized Federal Credit Union in Waco, Texas was given the OK to merge with the $16.7 million 1st University Credit Union, also based in Waco. The consolidation was allowed in accordance with NCUA Rules and Regulations, Part 708(b), which gives the federal agency the authority to permit a merger without a member vote under certain circumstances.
On Dec. 21, the NCUA approved the merger of the $32.1 million Gabriels Community Credit Union in Lansing, Mich., with the $7.6 billion Michigan State University Federal Credit Union in East Lansing.
Chartered in 1947, Waconized served the employees of the Owens-Illinois glass plant in Waco. On Sept. 21, 2023, O-I Glass announced it would be closing its Waco plant later that year.
“With the glass plant closing, the board of directors and I realized that merging with another credit union was in the best interests of our members,” Waconized President/CEO Elizabeth Hamilton said in a prepared statement last week. “After speaking with several potential merger partners, we made the strategic decision to merge with 1st University. This merger marks an exciting chapter for our credit union and our members. By joining forces with 1st University Credit Union, we are creating a stronger and more resilient financial institution that is better equipped to meet the evolving needs of our members.”
Waconized’s two employees operated a branch that served more than 450 members.
1st University’s 10 employees serve nearly 1,500 members – primarily Baylor University employees, students, and alumni and their families.
“We are thrilled to welcome the members of Waconized Federal Credit Union into the 1st University Credit Union family,” 1st University President/CEO Kevin Hood said. “This merger is a testament to our shared commitment to delivering exceptional value and service to our members, and we look forward to a bright future together.”
Last August, 1st University announced a partnership with an AI company to gain insights about its members, and combined that with its market analysis and the credit union’s value proposition to identify possible growth opportunities.
The effective date of the merger is Jan. 31, according to the NCUA.