TDECU Continues to Grow in Greater Houston
Two of Houston’s Strongest Credit Unions Will Form “Space City Financial”
TDECU Continues to Grow in Greater Houston, Embraces Space City through Strategic Merger
Space City Credit Union is merging into TDECU, Houston’s largest not-for-profit financial institution. TDECU President and CEO Isaac Johnson will lead the new organization in this next chapter. After growing and leading the organization for 30 years, Space City Credit Union’s President and CEO, Craig Rohden, will retire.
Upon regulatory approval of the merger, TDECU will have nearly $5 billion in assets and close to 400,000 members and will adopt the brand name Space City Financial in the Greater Houston area including Harris and Brazoria Counties.
Hear from our CEO
What Comes Next?
We will still maintain our core values and be a credit union in every sense of the word. We believe having “financial” in our name better reflects our commitment to offering a broad range of financial services and expertise and enhances our position in an increasingly competitive landscape. The deal is anticipated to be completed later this year, subject to receiving all regulatory approvals and other closing conditions.
What Members Can Expect
There will be no immediate change to your account. Our Members will continue to enjoy all the products and services that they rely on without disruption. In the coming months, Members will learn more about the planned integration and will not see any changes until it is in effect.
We invite you to share in our excitement about our bright future as we continue to build a credit union that every Member can take pride in—today, tomorrow, and for generations to come.
Frequently Asked Questions
Why is Space City Credit Union merging into TDECU?
We are committed to growing a brighter tomorrow for our Members and their families. This merger allows us to benefit from improved efficiency in operations, technological growth initiatives, and experienced management and operations teams who are committed to delivering a superior Member experience. 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 us to be that partner. This merger will unite two strong credit unions on an aligned path to success to better serve all our Members.
Who is Space City Credit Union?
Like TDECU, Space City Credit Union is a strong financial institution with deep roots in Harris and Brazoria counties. Originally chartered by a handful of employees in 1965 as Stewart & Stevenson Credit Union, Space City Credit Union has $140 million in assets, three branches, 43 employees and serves over 12,500 members who live and work in the communities we know and serve. They also share a deep commitment to investing in our communities through Space City Charities.
How will the merger affect TDECU Member accounts?
There will be no immediate change to Member accounts. Members can continue to enjoy all the relationships, products, and services that they rely on. For example, your credit cards and debit cards will continue to operate as usual. In the coming months, Members will learn more about the planned integration and impacts to their accounts, if any.
Does the merger require a TDECU Member vote?
TDECU is a credit union that considers our Members in everything we do. Our Members elect our Board of Directors and our Board is committed to making decisions that are in the best interest of the credit union and its Members. When two credit unions merge, the members of the credit union that’s joining us get to vote because they’re deciding whether or not they want to become part of our credit union. Specific to the merger with Space City Credit Union, no vote is needed because we’re staying as the continuing credit union and the day-to-day operations, leadership, policies and your membership benefits will continue.
What if I also have an account with Space City Credit Union?
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.
What will the organization be called?
As part of the merger, TDECU will acquire the Space City brand, and we will operate in the Greater Houston area including Brazoria County as Space City Financial.
Who will lead the combined organization?
Upon regulatory approval, TDECU President and CEO Isaac Johnson will lead the new organization in this next chapter. After growing and leading the organization for 30 years, Space City Credit Union’s President and CEO, Craig Rohden, will retire. The new organization will have nearly $5 billion in assets, and nearly 400,000 members.
Does this mean TDECU as a name will go away?
No, TDECU will continue to be the legal name of the organization.
If SCCU is merging into TDECU, why are we changing our name?
The name change reflects a broader strategy which signals a new chapter and direction for the combined organization. While SCCU may be merging into TDECU, the decision to change the name is tied to a vision of evolving beyond the legacy of both entities, creating a unified brand that can better represent the combined strengths of our two organizations. Being anchored in Greater Houston and Brazoria Counties, Space City carries significant meaning. It's an opportunity to clarify our organization’s purpose and stand out in a competitive market while aligning with our goals to improve efficiency, visibility, and member experience.
When will the merger take place?
The deal is anticipated to be completed later this year, subject to receiving all regulatory approvals and other closing conditions. Any brand change would happen after approval. No sooner than the first quarter of 2025.
Does "Financial” mean that we will no longer be a Credit Union?
We will still maintain our core values and be a credit union in every sense of the word. We believe having “financial” in our name allows us to quickly communicate the full scope of services, products and expertise, and enhances our position in an increasingly competitive financial services landscape.
Is Space City Credit Union experiencing any financial challenges?
No. Space City Credit Union and TDECU are both financially strong organizations. The current market offers opportunities for strategic consolidation, and by combining our capital and resources, we can better serve our Members and enhance the benefits we provide.
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 with our current Member Center Footprint, allowing us to serve more Members and Communities.
How does this relate to the pending partnership with Sabine State Bank and Trust?
Both deals align with our growth strategy by expanding our reach and enhancing our product offerings. In both cases, Members will not experience any changes until further notice.
Are certain employees receiving additional compensation or benefits because of 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.
Can you outline these financial arrangements?
Below is a summary of the approved payments for select employees. These reflect retirement considerations, non-compete/retention agreements, and salary alignment. All other Space City employees will have their compensation reviewed and adjusted to TDECU’s framework.
| Name Of Employee Receiving Benefits, Position And Starting Year At Space City | Description Of Financial Arrangement | Amount Involved |
|---|---|---|
| Craig B. Rohden President Since 1994 | Lump Sum payable by Space City Prior to Closing | $3,500,000 |
| Early Vesting of Split Dollar Arrangement (Executive Benefit) | No increase in benefit | |
| Lump sum payable by TDECU following Closing under a transition and 2-year non-compete agreement. | $500,000 | |
| Nikki Moore-Owens Sr. Vice President Since 2008 | Annual salary increase based on similarly situated employees of TDECU. Employee at-will. | $55,000 |
| Lump sum payable by Space City prior to Closing | $1,900,000 | |
| Lump sum payable by TDECU following Closing under a transition, retention and 2-year non-compete agreement. | $350,000 | |
| Paula Newkirk Vice President Since 2007 | Annual salary increase based on similarly situated employees of TDECU. Employee at-will. | $100,751 |
| Lump sum payable by Space City. Employee at-will | $500,000 |
| Name Of Employee Receiving Benefits, Position And Starting Year At Space City | Description Of Financial Arrangement | Amount Involved |
|---|---|---|
| Michelle Williams Vice President Of Administration Since 2022 | Annual salary increase based on similarly situated employees of TDECU. Employee at-will. | $24,867 |
| Tifini Abshire Accounting Manager Since 2018 | Annual salary increase based on similarly situated employees of TDECU. Employee at-will. | $24,432 |
In honor of his retirement and in recognition and appreciation of his long-tenure and outstanding performance, Space City’s Board of Directors has approved the payment below to Craig Rohden, CEO, for his thirty (30) years of visionary leadership, driving the credit union’s growth from $4 million to $142 million in assets. Mr. Rohden will not be employed post-merger with TDECU, and will receive a lump sum of $3.5 million which is the estimated amount of compensation had he remained with Space City projected for 10 years (his estimated age of retirement). In addition, TDECU will pay a lump sum of $250,000 per year for a total of $500,000 in consideration for a two-year non-compete, non-solicit agreement aligned with his compensation.
Nikki Moore-Owens has been with Space City for sixteen (16) years and is the Chief Operating Officer. In recognition and appreciation of her long-tenure and outstanding performance in assisting the credit union’s growth and performance, Space City’s Board of Directors has approved the payment below of $1.9 million. This payment represents $118,750 for each year of employment. In addition, TDECU will pay a lump sum of $175,000 per year for a total of $350,000 in consideration for a two-year non-compete, non-solicit, retention agreement aligned with her compensation. Nikki Moore-Owens will continue with TDECU as Senior Vice President.
Paula Newkirk, Vice President of Lending and Member Solutions, and third officer in command, has been with Space City for seventeen (17) years. In recognition and appreciation of her long-tenure and outstanding performance in assisting the credit union’s growth and performance, Space City’s Board of Directors has approved the payment below of $500,000. This payment represents $29,411 for each year of employment. Paula Newkirk will continue with TDECU as Vice President.
Why aren’t TDECU employees or executives receiving similar payments?
These merger-related payments and agreements are tied to preexisting obligations and retirement considerations specific to Space City’s Board of Directors and certain executives. As the surviving credit union, TDECU’s primary focus is to integrate existing commitments and ensure a smooth 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.
Where can I view the notice to Members regarding the merger?
The Member notice can be viewed here: https://www.regulations.gov/docket/NCUA-2025-0032/document