Two Legacies,
One Vision.

In an increasingly competitive financial services environment, this potential merger would combine the assets and expertise of two of Houston’s most established and respected credit unions into an incredibly strong, member-centric institution positioned to help membership of both organizations achieve success along their financial journey. Our shared values and mission alignment will allow us to do more to help our members thrive and to make investments in our community with expanded resources for financial literacy education promoting the strength and stability of our area’s young people.

TDECU (Texas Dow Employees Credit Union) is the largest credit union in Houston and the fourth largest in Texas. It was founded in 1955 by employees of Dow Chemical Company in Lake Jackson, Texas, with a mission of “people helping people”. It has a strong tradition of community service, supporting initiatives in education, health, and economic development. In 2023, TDECU launched the TDECU Cares Foundation, which provides charitable grants, scholarships, and financial wellness programs. TDECU has also played a role in financial education, partnering with the University of Houston and securing naming rights for TDECU Stadium, home of the Houston Cougars football team.

Nothing will change in the near future as name and branding decisions will be made after full approval of the merger is obtained.

If you have a membership with TDECU, you can continue to enjoy all their products and services without disruption and there will be no immediate changes to your accounts. Once the merger is finalized, there will be a process by which your membership will be combined. At that time, TDECU and Smart Financial will provide clear updates well in advance of any changes that may affect accounts, products, or services.

In the initial stages, members will continue to perform all banking transactions at their legacy credit unions—TDECU or Smart Financial.

Smart Financial Credit Union’s current main office at 6051 North Course Dr., Houston, TX 77072 will remain an operational center and the new Credit Union headquarters will be located at TDECU’s current main office at 2000 Post Oak Blvd., Houston, Texas 77056. Smart Financial Credit Union currently has no plans to close branches.

The proposed merger prioritizes employee retention and career growth opportunities. The goal is for all Smart Financial employees to remain with the combined organization. Smart Financial brings a strong technology infrastructure that we plan to retain and leverage across the combined credit union which will also rely heavily on the experience and knowledge of our employees. Their insight will be instrumental in leading future enhancements and ensuring a smooth transition for our members.

Yes. Smart Financial employees who will receive pay adjustments or other benefits are detailed in the member notice to honor contractual commitments and reflect industry-standard practices for retaining key talent and compensating them fairly as they are integrated into the combined credit union. The CEO will also receive compensation in accordance with the termination provisions in the CEO employment contract with the Board of Directors. These arrangements honor contractual commitments and reflect industry-standard practices for retaining key talent or compensating them fairly upon retirement or transition.

Due to the higher Smart Financial Net Worth Ratio, the directors of both credit unions believe that a special dividend is warranted. Smart Financial Credit Union will distribute a portion of its net worth to its members in the merger. The estimated total amount of the dividend is expected to be approximately $20.4 million. Members will be eligible for a Special Member Dividend if the member is in good standing (not having a charge-off, or delinquent loan greater than sixty (60) days as of the dividend payment date), the membership account was open as of December 31, 2024, and remains open until the time the special dividend is paid. Any dividends calculated for members not in good standing, or membership closed since December 31, 2024, the funds will not be paid out to Smart Financial members and will transfer to TDECU when the merger occurs.

The Special Member Dividend will be allocated to each eligible member based on the following formula: (i) the nominal amount of the eligible member’s 2024 point of sale debit card signature transactions multiplied by 1.0%, plus (ii) the eligible member’s average 2024 share balance(s) multiplied by 1.5%, plus (iii) the eligible member’s average 2024 loan(s) balance(s) multiplied by 1.5%. This will be paid in the form of cash back rewards on a pro-rata basis for 2024 point of sale signature transactions, share balance rewards, and loan balance rewards. There is NO minimum or maximum dividends or rewards per member. Depending on each member’s individual engagement with the credit union, there may be one or more payments to eligible members.

Both Smart Financial and TDECU are currently well-capitalized and the combined credit union will remained well-capitalized post the special dividend distribution. Below is a comparison chart as of May 31, 2026.

Deposits held at Smart Financial Credit Unions are separately insured for an initial six- month period. Once the grace period expires, deposits you hold in the newly combined credit union are added together. The total is then insured up to the standard limit of $250,000. In the case of a share certificate, the earliest maturity date after the six-month period.

Time deposits (CDs) that mature within six months of the merger and are renewed maintain their separate insurance until their first maturity date after the six-month period ends.

The integration process between the credit unions will be complex and will take time to complete. For now, there is no immediate action required for Members. Your accounts, services, and online banking access remain unchanged. You should continue to perform all banking transactions at your legacy credit union and use your existing Member Centers or branches for any support you may need. Business operations will continue as usual, and we will continue to communicate updates.

YES! In fact, your voice is the most important voice of all. The NCUA (National Credit Union Administration) and the Texas Credit Union Department have given preliminary approval for the application for merger with TDECU. Members will receive information on the voting process from CU Ballot, a 3rd party company who will administer the voting process to ensure a fair process. Members are encouraged to make sure their contact information is up to date and to be on the lookout via email and physical mail for information on the voting process. In addition, an in-person meeting is scheduled for September, 28 at Norris Conference Center, 816 Town & Country Blvd., Houston, Texas 77024 at 6:00PM to give members an opportunity to ask questions or make comments regarding the merger as well as vote in-person at the meeting. You may also email us at mergerinsights@smartcu.org with any questions or concerns.

Yes, you may also submit comments about the merger to share with other members by voicing them to the National Credit Union Administration (NCUA) at https://ncua.gov/ or mail to:

NCUA - Office of Credit Union Resources and Expansion
1775 Duke Street Alexandria, VA 22314

You may also email us at mergerinsights@smartcu.org with any questions or concerns.

Using this reference - RE: Member-to-Member Communication for Smart Financial Credit Union Merger. The NCUA will post comments received from members on its website, along with the member's name, subject to the limitations and requirements of its regulations.

The special member meeting will be held at Norris Conference Center, 816 Town & Country Blvd., Houston, Texas 77024 on September 28, 2026, at 6:00PM.

The purpose of this meeting is:

1. To consider and act upon a plan and proposal for merging Smart Financial Credit Union with and into Texas Dow Employes Credit Union (TDECU), whereby all assets and liabilities of Smart Financial will be merged with and into TDECU. All members of Smart Financial will become members of TDECU and will be entitled to and will receive shares in TDECU for the shares they own in Smart Financial on the effective date of the merger.

2. To ratify, confirm and approve the action of the Board of Directors in authorizing the officers of Smart Financial Credit Union, subject to the approval of members, to do all things and to execute all agreements, documents, and other papers necessary to carry out the proposed merger. The Board of Directors of Smart Financial encourages you to attend the meeting and vote on the proposed merger.