NEW YORK CITY — Just six months after being placed into conservatorship, Montauk Credit Union, based here, was merged into Bethpage Federal Credit Union of Bethpage, N.Y., effective Thursday.
As reported in Credit Union Journal, Montauk CU had $178 million in assets on Sept. 18, 2015 when the New York State Department of Financial Services
At the time, the New York State Department of Financial Services said it placed Montauk CU into conservatorship because of "unsafe and unsound conditions at the credit union."
In early February, NCUA sounded a hopeful note, stating Montauk CU had taken numerous steps to improve its operations since being placed into a conservatorship. The federal regulator revealed the source of Montauk's troubles was
On Thursday, NCUA said the two agencies had worked together to address issues affecting the credit union's safety and soundness, however, "As conservator, NCUA determined that merging Montauk into Bethpage was in the best interests of its members," the federal regulator said in a statement.
According to regulators, former Montauk CU members who now are new Bethpage FCU members should experience no interruption in services, and member deposits remain protected by the National Credit Union Share Insurance Fund. The new Bethpage members can continue to contact the credit union and transact business by telephone or in person at the office located at 111 West 26th Street, New York, N.Y. Members also can transact business at Bethpage branches.
The Montauk branch will be operated by Bethpage FCU and will be developed into a full-service, community branch and shared-service facility through the COOP Shared Branch Network.
Bethpage FCU on Thursday released a statement noting NCUA granted merger approval on March 21. "Bethpage Federal Credit Union will immediately assume all of Montauk Credit Union's members, assets and liabilities. The merger also enhances Bethpage's field of membership," Bethpage FCU said.
"Throughout its 75-year history, Bethpage has consistently demonstrated an outstanding record of member service. Integral to this success is our unwavering commitment to our members and the strategic decisions that are always made in our members' long-term interests," said Wayne N. Grossé, president and CEO, Bethpage FCU. "Bethpage is eager to provide Montauk's members with the great value and service our members experience today. We are also excited to offer greater credit union access to our membership."
"Moving forward, Bethpage recognizes that as a credit union, it has strong social and economic responsibilities, and is an integral part of the region's cultural, civic and social climate. As part of this commitment, we will develop and expand our community outreach programs beyond the Long Island region to support and enrich the communities of our new service area, and provide an opportunity for others to benefit from the credit union difference, " added Grossé.
Montauk was a federally insured, state-chartered credit union that, prior to the merger, had assets of $162 million and 2,830 members, according to its most recent Call Report. Chartered by the state of New York in 1922, Montauk primarily served individuals in the taxi industry in New York City, Chicago and Philadelphia. Bethpage is a federal credit union with assets of $6.2 billion and 277,429 members, according to its most recent Call Report.
Bethpage FCU said it is the 16th largest credit union in the nation and New York state's largest with $6.4 billion in assets prior to the merger and $6.6 billion post-merger.
