The tie-up of Houston’s largest and one of its oldest credit unions would form a financial cooperative serving more than 460,000 members across Texas, pending approval.

Two of Houston’s most established credit unions — TDECU and Smart Financial Credit Union — announced their intent to merge, a move that would create a combined institution with nearly $6 billion in assets and more than 460,000 members across Texas. 

The merger, pending regulatory approval and a vote by Smart Financial members, is expected to be finalized in the first quarter of 2026.

Founded in 1955, TDECU is Houston’s largest credit union, with more than $4.9 billion in assets, 399,000 members, and a network of over 30 branches statewide. Smart Financial, established in 1934 by a group of Houston ISD teachers, operates 13 branches in Greater Houston, serving nearly 60,000 members and holding $802 million in assets.

Under the proposed merger, TDECU President and Chief Executive Isaac Johnson will lead the combined organization, while Smart Financial CEO LeAnn Kaczynski will serve as Chief Integration Officer for one year to oversee the transition.

“Stronger together,” Johnson said. “This partnership isn’t just about growing. It’s about affirming what it means to be a credit union in today’s world by renewing our focus on efficiently delivering value and opportunity for our members and the communities we serve.”

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Kaczynski called the merger the result of “conversations over several years,” describing it as “strategic in so many ways as both organizations complement each other and bring a variety of unique strengths to the table.”

The merger announcement comes as TDECU continues to expand its footprint. In 2024, it announced plans to merge with Space City Credit Union, a Houston-based institution with 12,000 members and $141 million in assets, under a new brand, Space City Financial. A separate acquisition attempt of Louisiana’s Sabine State Bank and Trust was later abandoned.

If completed, the merger with Smart Financial would mark one of the largest consolidations among Texas credit unions in recent years, positioning the new entity as a leading player in the state’s growing cooperative banking sector.

The merger arrives amid a wave of credit union consolidation. According to recent industry data, 45 mergers were approved in the second quarter of 2025 alone.

TDECU earned $9.7 million in the first six months of 2025, essentially flat compared to 2024, according to call report data from the National Credit Union Administration. Smart Financial reported earnings of $2.6 million in the first half of 2025 compared to $989,000 a year ago.

“This partnership isn’t just about growing. It’s about affirming what it means to be a credit union in today’s world.”

– Isaac Johnson
President & CEO
TDECU