Acting under an NCUA request, the $4.7 billion Bethpage Federal Credit Union said it expects to complete a Sept. 1 merger of the ailing $5 million UFCW Local 342 FCU of Mineola, N.Y.
The consolidation of the union-based credit union would be the first merger for 203,000-member Bethpage in five years “but fits well into our expansion program as we look at other similar opportunities,” said Linda Armyn, senior vice president of corporate strategy at the big Long Island institution.
The Mineola credit union, which has 2,000 members and one office, is typical of some small credit unions which are struggling in today’s environment, said Armyn.
Talks with NCUA and the UFCW board began more three months ago and “we’re happy to help out when we can,” Armyn said, noting there was no bidding process on the Mineola credit union.
“We have made bids for others in the past and we will continue to do so,” said Armyn.
Bethpage said it plans to close the small credit union’s sole office but that current UFCW members will be offered more products and services and the use of Bethpage’s branches.