Express-News Federal Credit Union officials this week told members the institution is working toward a merger with Live Oak-based Randolph-Brooks Federal Credit Union.

Express-News FCU began searching for a merger partner after being told by San Antonio Express-News Publisher Susan Pape that she couldn’t guarantee the credit union would continue to operate rent-free in the newspaper’s downtown building after this year.

The credit union occupies space on the first floor of the newspaper’s building at 301 Avenue E.

Members were told it wasn’t feasible for the credit union to relocate, according to two people who attended its annual meeting Wednesday evening. Tammy Murray, the credit union’s CEO and president, wouldn’t comment Thursday.

“At this time, the merger is under consideration by the Express-News Federal Credit Union,” Randolph-Brooks spokesman Salvador Guerrero said in an email. “Randolph-Brooks Federal Credit Union cannot comment on any further information pertaining to ENFCU.”

Express-News FCU union’s members likely will vote this summer on the merger. The deal also would require approval from the National Credit Union Administration. If approved, the takeover is expected to occur by Oct. 1.

Express-News FCU had about $7.1 million in assets as of March 31, a nearly 13 percent decline from the end of the first quarter last year. It lost almost $7,000 in the latest quarter after earning almost $2,600 in the same period last year.

At its peak, the Express-News FCU had more than 2,000 members. But membership has fallen to about 960, and too few of them are seeking loans — which is how the credit union generates revenue. Its members include current and former Express-News employees, their families and others.

The newspaper has had various workforce reductions amid a downturn in the industry over the last several years.

Last week, Pape announced the newspaper was exploring a possible sale of its building, which occupies 2.1 acres, given all of the development going on in downtown. The top four floors of the eight-story, 172,000-square-foot building are vacant.

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Pape confirmed she raised the rent issue with the Express-News FCU, unrelated to a possible building sale. However, she said she never discussed a rent amount.

The three Express-News FCU employees are expected to join Randolph-Brooks.

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RBFCU is the second largest credit union based in the San Antonio area, with just under $9.5 billion in assets as of March 31. Only Security Service Federal Credit Union, with $9.55 billion in assets, is larger.

RBFCU has about 800,000 members, more than 2,000 employees and 61 branches. It had about $7.1 billion in loans and $7.7 billion in deposits as of March 31. It was founded in 1952.

The Express-News FCU had about $3.6 million in loans and $6.2 million in deposits as of March 31. The institution was chartered 56 years ago.

Patrick Danner is a San Antonio-based staff writer covering banking and civil courts. Read him on our free site, mySA.com, and on our subscriber site, ExpressNews.com. | pdanner@express-news.net | Twitter: @AlamoPD