First Service CU (FSCU), a Houston-based credit union, is paying out a substantial merger dividend of $9.5 million to approximately 7,300 members of a merged credit union.
First Service CU (FSCU), a Houston-based credit union, is paying out a substantial merger dividend of $9.5 million to approximately 7,300 members of a merged credit union. El Paso Corporation FCU (EPCFCU) merged with FSCU on April 1st and the terms of the agreement included giving back the excess capital that the member-owners helped create over EPCFCU’s lifetime.
“This merger dividend is a unique achievement that displays the real benefits of credit union ownership,” says David Bleazard, president/CEO of First Service Credit Union. “Being part of a financial cooperative pays BIG, and it doesn’t take much to see that the power of credit union member-ownership has a tangible meaning and value to those that are a part of it.”
“The member-owners of EPCFCU should receive benefit of the capital they helped earn over the lifetime of that credit union,” adds Bleazard. “They were the reason the credit union was able to grow, remain strong, and become a desirable merger partner for our organization.”
The combined First Service Credit Union will have approximately $470 million in assets and will serve over 52,000 members via 14 area branches. The merger between the two institutions became official as of April 1st, and the final data system conversion is scheduled for completion on July 1st.