The financially struggling $40 million NEO Federal Credit Union in Miami, Okla., will merge with the $1.3 billion TTCU in Tulsa on Oct. 1.
In a NEOFCU statement on its website to members who approved the merger in late July, the cooperative said “TTCU will strive to keep as many NEO employees as possible.”
NEOFCU had 17 employees as of June 30, according to Callahan & Associates.
In addition, one of NEOFCU's branches will be closed.
“The (NEOFCU) Miami branch will be added to the existing branch network TTCU currently operates,” according to NEOFCU's statement. “TTCU's Claremore branch will move to the existing NEO Claremore branch and continue operations in that location.”
NEOFCU said the board of directors and management have long been concerned about growth prospects and what it would take to survive.
Indeed, NEOFCU has been struggling financially for some time. On June 30, the cooperative posted a net worth of 4.46%. In 2011 and 2012, its net worth was 6.81% and 5.42%, respectively, according to NCUA.
What's more, NEOFCU recorded loan, fee and investment declines and had a total net income loss of $3.4 million from 2008 to 2012, according to NCUA financial performance reports. As of June 30 of this year, the credit union also posted a net income loss of $662,542, NCUA financial performance reports show.
“Since earlier this year, much time has been dedicated to seeking a merger partner that would offer our members excellent products and services, a stable organization and a credit union with sufficient resources to be successful in the future,” according to the statement on NEOFCU's site.
Chartered in 1956, NEOFCU serves 5,055 members.
The conversion of NEOFCU's electronic records to TTCU is tentatively scheduled for Nov. 1.
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