In an effort to keep you as up-to-date and informed as possible, we have compiled a list of frequently asked questions regarding the merger. If you have additional questions, comments or concerns, please email us at info@houstonhighwaycu.com, or write to us at CU Partner 8120 Washington Avenue Houston, TX 77007.
Click here to read the Plan of Merger.
Frequently Asked Questions
When will the merger between Houston Highway and Energy Capital occur?
Once all approvals have been obtained the final date of merger will be October 31, 2008.
Why do we need to merge?
In contrast to many other financial institutions, credit unions pride themselves on being able to collaborate with other credit unions to provide the ultimate level of products and services to its members. This merger will allow Houston Highway members to have access to a larger number of new products and services, in addition to seven new branches, four of which are accessible to the general public for transactions.
Who is Energy Capital Credit Union?
Energy Capital was founded in 1934 and the primary field of membership is ExxonMobil employees, contractors and their families. In 2005, Energy Capital expanded its field of membership to allow anyone who lives or works within a 10-mile radius of any of our branches to be eligible for membership. Energy Capital is a financially sound organization with more than $116 million in assets and 16,000 members. On staff is more than 40 full-time employees anxious to serve the members of Houston Highway.
Will rates and fees change?
As part of our research, we will review both organizations' current rates and fees, ensuring we remain competitive in today's financial market.
Will I still see the same familiar faces at Houston Highway Credit Union?
Yes! The majority of the staff you work with now will remain at the Washington Avenue location. As we will be a much larger financial institution, we will need to bring a few of the current staff members to our administrative office to continue to assist us with making sure processes run smoothly and efficiently for you.
Will my account number change?
For most members, the account number will stay the same. However, there may be some instances where a new account number will have to be issued.
What products and services will be available after the merger with Energy Capital Credit Union?
All of your existing products and services will remain, including IRAs. In addition, you will also be able to get mortgage loans, business accounts and investment services, just to name a few.
Will my funds remain insured once the merger takes effect?
Yes. Your deposit funds will remain insured by NCUA. Once the merger has met all approvals, a truth in savings disclosure will be mailed to all Houston Highway members.
Will Houston Highway members have representation on Energy Capital's Board of Directors?
Yes. Energy Capital's BOD consists of nine members currently. Two members of Houston Highway's BOD will serve as well. Energy Capital holds director elections every year at the Annual Meeting, where you can vote for the nominated officers you want to serve.
Will Houston Highway keep their name after the merger?
Houston Highway will become part of Energy Capital Credit Union and use that name after the merger date of October 31st.
I?ve been a Houston Highway member a long time. Will my membership status go away?
No, your lifetime membership status will continue.
Will the open and close hours stay the same at HHCU?
Yes, the hours will remain the same.
Will I be able to continue banking at the current HHCU location?
Yes, you will be able to continue banking there, as well as four other Energy Capital locations, and over 20 shared service sites accessible to the public, throughout Houston.
When can I start doing my transactions at the other locations?
You can start doing transactions at other Energy Capital locations on Monday, November 3rd.
Will my account statement stay the same?
Your account statement will change. You will receive a final deposit account statement on all deposits from Houston Highway as of the close of business on Friday, October 31. The following month, you will receive a statement from Energy Capital, which is mailed monthly for checking accounts and quarterly for savings.
Does Energy Capital host blood drives for the members to participate?
Yes, we have one scheduled for the fall of 2008 as well as annual shred days for our members.
What will the voting ballots look like, when I receive it in my mailbox?
The ballot will be in a regular, business envelope, but will say ?Member Ballot? on it.
How long will the Houston Highway building be kept?
The current Houston Highway building will be kept open for a minimum of 10 years, or as long as needed to provide services to TXDOT employees.
As an HHCU member, will I be able to continue using my personal checks?Yes, you may continue using your existing checks until you are ready to re-order.
Will I have to get a new debit card?
Yes, a new debit card will be issued prior to your old card becoming invalid, so you will not be without a card for any period of time.
Will I still have my Club 55 account?
Yes, Club 55 accounts will remain after accounts have been converted and it will continue as it currently is structured.
How will my MasterCard with Houston Highway be affected?
At the time of the merger, you will keep your current credit card. Upon renewal of your credit card, if you currently are not a Platinum MasterCard cardholder, we will upgrade your account to the Platinum MasterCard so that you may enjoy the extra benefits including the possibility to each up to 1% cash back!
If I have a HHCU loan, where do I make my payments now?
There will be no change in the way you make your payments.
Will my loan due date change?
You loan due dates will continue on the current date.
If I use CU@Home to pay my bills, how will the merge affect me?
Most likely, you will have to re-enter your information for Bill Pay and receive updated security certification due to our regulatory guidelines requiring Multi-Factor Authentication.
Will the home banking stay the same, or will I have to redo all my information and log-ins?
We are working to see if we can migrate your HHCU information to ECCU?s Home Banking system, so you will continue to have access to your prior statements.
Will I have 24-hour access to my accounts?
Yes, you may access your accounts any time after the merger via Virtual Branch home banking.
If I have accounts at HHCU and also ECCU, will I have my full coverage for my funds by NCUA, or will I have to move my money to keep my full coverage?
On the effective date of the merger, each member of Houston Highway will have full membership rights to all the financial services provided by Energy Capital, which includes NCUA coverage. With NCUA, you?re guaranteed coverage to least $100,000, but you can be covered for more than $1 million, depending on how the account is styled.
What will happen to my current IRA account?
You IRA account will continue under the existing structure.
Will I lose my safe deposit box at HHCU?
No, you won?t lose your safe deposit box. Energy Capital also offers safe deposit boxes at the Northwest location at 18540 Northwest Freeway.
Why weren’t the members told about the merger proposal earlier?
Prior to proposing a merger to the members your board of directors are entrusted to complete both due diligence and competed various regulatory requirements. After completion of the due diligence phase. On April 7th the Chairman distributed a letter to the membership advising of a proposed merger and the plan of merger along with frequently asked questions were posted on the website for members to review and provide further comment. Members also were requested to complete an online survey to determine additional questions they may have. Also a town hall meeting was held on April 29 to further address members questions prior to the member vote.
Why are you not seeking a replacement for the CEO?
As you review the plan of merger on HHCU’s web page you will see that the CEO’s retirement was a small factor in the board’s conclusion to consider a merger partner. With a change in leadership however creates cost savings and no loss of job for existing employees.
Why was Energy Capital Credit Union chosen?
ECCU and HHCU already share a number of third parties that provide services to our members. Also our credit union’s service philosophy is a good match with both credit unions focused on offering premier service to their members. Over the years HHCU has continued to have request to offer a wider variety of locations and products and services, with its limited asset base this is not possible without passing on cost to our members. With the combined assets of both credit unions our econonomies of scale would allow us be able to provide those services to our members immediately after the merger.
When looking on Energy Capital Credit Union’s website, they don’t seem to offer accounts, such as the Club 55. Why not?
Each credit union has their own specific names for various types of accounts. Club 55 is a name chosen by Houston Highway Credit Union. Energy Capital Credit Union is going to continue to offer Club 55 accounts with the same features as it currently has.
What affects the rates Energy Capital Credit Union uses for dividends and loans?
Energy Capital Credit Union’s rates are set monthly by their asset liability committee and credit committee, which considers the current market rates, as well as the local rates of competitors.
When I apply for a loan at Houston Highway Credit Union, the loan officer knows me and my current situation. How will that change if the merger is approved?
You will continue to be served by the Houston Highway employees at the Washington location. If you visit one of the current Energy Capital Credit Union locations, you will experience the same caring service. Most branches only have 2 – 4 employees, so the intimate relationships with your credit union staff will continue.
What will I get out of the merger? How will I benefit?
You will gain numerous products and services, which are mentioned above in David Williams’ letter to the members. You won’t have to look elsewhere for any financial service or product – the combined credit union will serve personal needs, as well as business needs.
How is the Board of Directors of Energy Capital Credit Union elected?
They are elected in much the same way as Houston Highway’s Board is elected. Anyone who volunteers completes a state of texas required form, which is given to the nominating committee. The nominating committee after completing due diligence presents a recommended slate of directors to the members and the results are published in the fourth quarter newsletter.. A formal vote to elect the new officers is then held at the Annual Meeting in February. Energy Capital seeks to find candidates who will represent their membership accordingly. Currently, there are current and retired ExxonMobil employees serving, as well as members who joined outside of a SEG affiliation. You must be a member in good standing to serve on the Board of Directors. Terms range from one to three years, depending on the candidate’s preference.
Will I have to change my automatic checks, drafts and ACHs?
No, all changes will occur in the background. Houston Highway’s routing number will be routed to Energy Capital’s, so you won’t have to make any changes yourself.
Will there be a change in retired credit union staff retirement funds?
Both credit unions have a defined benefit plan administered through Credit Union National Association (CUNA) retired staff members are fully vested in this plan and will continue to receive the same amount of benefit.
Is anyone receiving a golden parachute due to this merger?
A golden parachute would be a specific sum of money to be paid out to board, staff or management if the merger occurs. In the proposed merger no one will receive any payout of funds if the merger occurs. As state chartered credit unions and Federally insured by the NCUA this is a prohibition of our charter and statutes.
Why does HHCU need to merge?
Enclosed is the plan of merger detailing specific trends that exisit at HHCU, as well the key compatibilities are listed that exisit with a merger with ECCU.
Why does Energy Capital Credit Union charge a fee to refinance my loan?
Energy Capital Credit Union charges a fee to refinance in-house loans, which allows the members the benefit of a lower rate. Loans refinanced from other financial institutions are not changed the fee.
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