TFCU acquires LOMTO Federal Credit Union in Woodside, Queens
Robert Allen CEO of TFCU.
Teachers Federal Credit Union, based in Hauppauge, announced on Monday that it assumed shares, some loans and other assets of LOMTO Federal Credit Union, based in Woodside, Queens, after LOMTO was liquidated by the National Credit Union Administration.
The terms of the acquisition were not disclosed.
LOMTO is TFCU's third acquisition this year. It acquired Melrose Credit Union in Briarwood, New York, a month ago, and Projector Federal Credit Union in Melville in August.
The recent acquisitions by TFCU, founded in 1952, have increased its membership to more than 320,000, and it has more than $7 billion in assets.
"This is a positive step in the growth of TFCU, and with the completion of this purchase and assumption, we now have three branches in New York City," Robert Allen, CEO of Teacher Federal Credit Union, said.
LOMTO, named for the League of Mutual Taxi Owners, was formed by a group of New York City medallion taxi owner-drivers in 1936. The credit union had been under conservatorship of the NCUA since June 2017. NCUA places credit unions into conservatorship "in order to resolve operational problems that could affect the credit union's safety and soundness," according to the NCUA's website.
TFCU said "it did not acquire any loans or obligations related to New York City Taxi Medallions." Taxi medallions, which are transferable permits allowing taxi drivers to operate legally, have declined in value as ride-sharing apps like Uber and Lyft have cut into traditional taxi business, according to published reports.
Teachers Federal Credit Union's corporate headquarters at 102 Motor Pkwy. in Hauppauge. Credit: Teachers Federal Credit Union
At the time of the liquidation and subsequent acquisition by TFCU, LOMTO had 2,283 members and assets of nearly $156 million, according to the NCUA.
TFCU said that 16 of LOMTO's 24 employees accepted job offers.
LOMTO's offices in Woodside and Manhattan are open and conducting business as usual and will soon display new signs to reflect the new ownership.
New members "should experience no interruption in services," and individual accounts remain federally insured by the National Credit Union Share Insurance Fund up to $250,000, according to an NCUA release.
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