The financially struggling $40 million NEO Federal Credit Unionin 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 themerger in late July, the cooperative said “TTCU will strive to keepas 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 branchnetwork TTCU currently operates,” according to NEOFCU's statement.“TTCU's Claremore branch will move to the existing NEO Claremorebranch and continue operations in that location.”

NEOFCU said the board of directors and management have long beenconcerned about growth prospects and what it would take tosurvive.

Indeed, NEOFCU has been struggling financially for some time. OnJune 30, the cooperative posted a net worth of 4.46%. In 2011 and2012, its net worth was 6.81% and 5.42%, respectively, according toNCUA.

What's more, NEOFCU recorded loan, fee and investment declinesand had a total net income loss of $3.4 million from 2008 to 2012,according to NCUA financial performance reports. As of June 30 ofthis 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 toseeking a merger partner that would offer our members excellentproducts and services, a stable organization and a credit unionwith 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.