Bethpage Federal Credit Union Thursday said it merged with a Manhattan financial institution that was seized by regulators in September. The merger with Montauk Credit Union gives the nearly 75-year-old Bethpage its first branch in New York City.
Montauk Credit, a one-branch institution, was a big lender to taxi-medallion owners, who have been losing ground to Uber drivers, Crain’s New York Business has reported. Uber passengers hail taxis from their smartphones.
The state Department of Financial Services placed Montauk Credit in conservatorship in September and appointed the federal National Credit Union Administration as conservator.
“The two agencies worked together to address issues affecting the credit union’s safety and soundness,” the NCUA said in a statement Thursday.
Earlier this month the agency granted Bethpage merger approval.
“We are very excited that this new charter allows us to expand outside of Long Island and into New York City,” said Linda Armyn, senior vice president of corporate affairs. “Our initial focus will be to develop the branch, and then in the near term we will look at other opportunities to expand in the tristate area.”
Montauk Credit, which was chartered in 1922, has assets of about $162 million and 2,830 members, the NCUA said. It is located at 111 W. 26th Street.
Before the merger, Bethpage had about $6.4 billion in assets and 280,000 members at 33 branches throughout Nassau and Suffolk counties.
Armyn said most of the six employees of Montauk Credit will continue to work at the new Bethpage Federal branch in Manhattan but some will be transferred to the company’s headquarters in Bethpage.