The $759 million Texas Trust Credit Union in Mansfield and the $57 millionSecurity One Federal Credit Union in Arlington plan to merge,creating the 18^th largest credit union in the Lone Starstate with over $815 million in assets and more than 65,000members.

The credit unions announced Wednesday they have signed an intentto merge agreement with the Texas Credit Union Department and theNational Credit Union Association. Once the merger is approved byregulators and by members of Security One, the former autoworkersturned community credit union will merge into Texas Trust CU.

Security One members will vote on the merger during a specialmember meeting following approval by the regulatory agencies. Theregulatory review process is expected to take 30 to 60 days.

The merger benefits the members of Security One by making moreservices available to them, and gives Texas Trust a bigger presencein Arlington.

“Competing in today's financial market is more challenging thanever,” said Pamela Stephens, president/CEO of Security One FCU. “Inorder to remain competitive and continue to deliver low rates forour members, we determined the best solution for our members was tomerge with another credit union.”

Though Security One has been financially sound with a networth/total assets ratio of 7.52, it has been dealing withincreasing financial and market challenges. For example, SecurityOne has seen steady declines in its loan and investment income,while its fee income has remained flat from 2008 to 2012, accordingto NCUA financial performance reports.

Security One had a net income gain of $354,732 in 2008. Butit posted net losses of $12,653 in 2009 and $287,572 in 2010.It then recovered to show net income gains of $77,469 in 2011 and$76,642 in 2012, according to NCUA financial performancereports.

The credit union also has seen some decline in its membership.In March 2008, Security One served 10,021 members and now has9,138, as of March 31 of this year, according to Callahan andAssociates.

The 47-year-old Security One FCU was originally known as theAuto Workers Arlington FCU, chartered by 30 employees of a localGeneral Motors plant. The credit union became a community charteredinstitution in 1997 and changed its name to Security One.

The 25 employees of Security One will join the Texas Trust.Stephens will become part of the executive management team, playinga key role in the merger and future success of the combined creditunion.

“Merging with Security One willgive Texas Trust's members additional branches in the Arlingtoncommunity, which is a strategic area of growth for us,” said JimMinge, president/CEO of Texas Trust Credit Union. “The combinedsynergies of Security One and Texas Trust will benefit the creditunion movement as a whole, enabling us to expand our market sharein north Texas.”