Launching to a Stronger Future
Space City Credit Union and TDECU Merge Creating More Access to Financial Empowerment for Members
Space City Credit Union is powered by TDECU. The merger with Houston’s largest not-for-profit financial institution was finalized on June 1, 2025. TDECU President and CEO Isaac Johnson leads the newly expanded organization. Space City Credit Union members overwhelmingly approved the merger during their May special meeting. With the merger complete, TDECU is nearly $5 billion in assets and serves close to 400,000 members.
What Members Can Expect
Members can continue to enjoy all the products and services they rely on without disruption. There will be no immediate changes to accounts. Members will receive information about the account integration process in the coming months. Legacy SCCU members interested in learning more about TDECU’s services should visit TDECU.org or one of its areas member centers.
Explanation of Member Dividend
If the proposed merger passes, Space City Credit Union’s Board of Directors has determined to distribute a portion of Space City Credit Union’s net worth as a dividend equal to $5,000,208 to its members. Eligible members must:
(i) Have an open Space City account as of March 31, 2024 that remains open until the allocation of the Special Dividend; and
(ii) Have an account in good standing, not having a charge-off, or delinquent loan greater than sixty (60) days as of the dividend payment date.
The amount of the Special Member Dividend you receive will be based on your combined Share balances at month end March 31, 2024. The Special Member Dividend you would receive will be calculated and distributed as follows:
(i) A minimum of $100 and maximum of $1,000.
(ii) Balances equal to or under $289.27 receive $100.
(iii) Balances over $2,892.68 receive $1,000.
(iv) Balances between $289.27 and $2,892.68 will receive a dividend equal to 34.57% of their Balance.
*If approved by members, dividend will be paid within 30 days of final regulatory approval to merge.
Who is eligible for the member dividend?
Members that (i) Have an open Space City account as of March 31, 2024 that remains open until the allocation of the Special Dividend; and (ii) Have an account in good standing, not having a charge-off, or delinquent loan greater than sixty (60) days as of the dividend payment date.
Why are members who joined after March 31, 2024 not able to receive a bonus dividend?
March 31, 2024 predates merger communication between both organizations. For purposes of merger filing preparation, we needed to set a date by which we could pull data and prepare calculations and other information.
What are the tax implications of the bonus dividend?
The dividend will be included in the 2025 1099-INT form (received in January 2026). This form is required if more than $10 in dividends are received throughout the year.
Frequently Asked Questions
Why did Space City Credit Union and TDECU merge?
Space City Credit Union was looking for a partner with shared values and mission that would continue to serve and grow with their members. They chose TDECU to be that partner. This merger unites two strong credit unions on an aligned path to success to better serve all our Members.
What if I also have an account with TDECU?
No changes will occur at this time. We will keep you well informed through every step of this transition. You can expect to receive regular updates from both organizations to make the transition as smooth as possible. Please continue to enjoy your experience with both organizations.
How will the merger affect member accounts?
There are no immediate changes to accounts.
At this time, Members will continue to perform all banking transactions at their legacy credit unions—TDECU or Space City Credit Union.
Shared Branching
- Space City Credit Union Members still have access to the shared branching network where they may perform basic banking transactions at branches of other credit unions within the same network.
- Members may access the shared branching locator from the Resources menu of the Space City Credit Union website. There are also alternative contact options (mobile, text, call, live help) on the shared branching locator webpage.
Will any Space City Credit Union Branches close as part of this merger?
No, we will continue operating Space City Credit Union’s three retail locations, which align to TDECU’s Member Center footprint, allowing us to serve more Members and Communities.
Did certain Space City CU employees receive additional compensation or benefits related to the merger?
Yes. In recognition of their long service and significant contributions to Space City Credit Union, some employees are receiving retirement or retention-related payments. These arrangements honor preexisting commitments and reflect industry-standard practices for retaining key talent or compensating them fairly upon retirement or transition.
Will these employee arrangements affect credit union finances or member services?
No. Both Space City and TDECU have performed thorough financial evaluations to ensure these arrangements fit within the merged organization’s strategic and financial framework. Member services, benefits, and fee structures will remain unaffected.
How were Space City CU Members engaged in the merger process?
Members were actively engaged throughout the merger process. Over several months, they were notified to ensure they were well-informed about the upcoming changes. Members were invited to participate in a member vote to approve the integration, giving them a direct voice in the decision-making process. This approach allowed members to be a part of shaping the future of their credit union.
Who is TDECU? Do they have a long history of serving communities like Space City?
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.
What does this mean for my accounts/loans/online banking access?
The integration process between the credit unions is 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.
What if I also have an account with TDECU?
If you have accounts with both credit unions, you should continue to use each credit union separately for your banking transactions during the integration process. However, as an immediate upgrade, you can use ATMs at both credit unions for cash withdrawals free of charge. This enhancement is designed to provide you with more convenience. Your accounts, services, and access will remain unchanged, and you can continue to use your existing legacy Member Centers or branches for support.
Can I start using TDECU branches?
TDECU Member Centers won’t be available to Space City members until the integration of our systems (likely end of 2026/2027). We will let you know when TDECU Member Centers are available to you.