Ukrainian Merger, Hmong Conservatorship Roil Twin Cities Ethnic CU Scene
In a week, the Twin Cities have witnessed the merger of one ethnic-based credit union and the NCUA conservatorship of another.
The $664 million TruStone Financial Federal Credit Union of suburban Plymouth, Minn., said pending NCUA approval it is merging effective mid-summer the ailing $6 million Ukrainian Credit Union of Minneapolis.
Then Wednesday night, the NCUA said it has conserved the $2.7 million Hmong American FCU of St. Paul, which it said would continue operating as usual from a different location.
A spokeswoman for TruStone Financial said Ukrainian management had indeed previously approached TruStone about a merger and in a statement, Tim Bosiacki, president/CEO, said his CU had “found a credit union that shares our values and mission.”
He also said the Ukrainian consolidation with TruStone, which would have eight branches, would allow his CU “to expand our cultural diversity within our membership and our geographical footprint to the northeast and downtown Minneapolis area.”
Ukrainian has a 6% net worth and has lost money in the past 11 quarters, ending 2010 with $243,000 in red ink.
It was unclear if TruStone, which has been healthy, may have also had an interest in submitting a bid to NCUA for Hmong American. Bosiacki was not immediately available for comment on Thursday. The statement quoting Oksana Bryn, president of Ukrainian, said the merger would allow the CU “to expand our product line, reduce costs, and further strengthen our financial value.”
Bryn said she would stay on as branch manager at the Ukrainian location.