HOUSTON — The $4.95-billion Texas Dow Employees CU (TDECU) and the $806.3-million Smart Financial Credit Union said SFCU’s members have voted in favor of merging and that state regulators have signed off on the combination.
The merger was first announced in October of 2025.
TDECU, which has approximately 395,000 members, reported $21.5-million in net income through Sept. 30, with net worth of 10.47%. The combined CU will have more than 45 branches and nearly 1,000 employees.
“We approached this partnership with Members at the center of every decision,” TDECU President and CEO Isaac Johnson said in a statement “Together, TDECU and Smart Financial are building a stronger cooperative with the scale to expand access, invest in member experiences and technology, and deepen our impact across the communities we serve.”
‘Focus on Supporting Members’
TDECU President and CEO Isaac Johnson will lead the merged organization. Smart Financial CEO LeAnn Kaczynski will serve as chief integration officer.
“As we begin this next chapter, our focus is on supporting members and employees through the transition while carrying forward the trusted relationships and member-focused service that define both organizations,” Kaczynski said in a statement.
A disclosure provided to members in 2025 and submitted to NCUA indicates merger-related payments will be made to board members and management of Smart Financial.
According to the disclosure, a “special dividend” will be paid to:
- SFCU Board Member Robert Bostie: $11,297.72
- SFCU Board Member Michael O’Neill: $6,969.48
- SFCU Board Member Lawrence Frazier: $1,789.67
- SFCU Board Member Timothy Raffield: $1,675.51
- SFCU Audit Committee Member Crystal Dows: $2,060.48
- SFCU President/CEO LeAnn Kaczynski: $11,922.20
- SFCU EVP/CFO Angela Chan: $2,419.10
- SFCU CXO Corbin Wilson: $4,743.47
In addition, Smart Financial said members of management will also see increases in compensation in connection with the merger, including:
- CEO LeAnn Kaczynski: Provision under existing CEO employment agreement: $562,234. Payment under existing 457(f) plan when 12-month employment agreement with TDECU ends: $312,134
- CFO Angela Chan: Annual salary increase under two-year employment agreement with TDECU: $84,021. Payment under existing 457(f) plan due to plan termination at closing of merger: $168,998
- CIO Marus Manning: Annual salary increase under two-year employment agreement with TDECU: $64,290
- CCO Brian Ziemba: Annual salary increase under two-year employment agreement with TDECU: $46,843
History of the CUs
The organizations noted TDECU started in 1955 when seven Dow Chemical employees chipped in five dollars each to help a coworker buy a kitchen appliance. Smart Financial was founded in 1934 by a group of Houston public school teachers.
“By combining the strengths of both organizations, we are better positioned to serve members today and for generations to come,” said Johnson in a statement.
