ALBANY, NY – SEFCU and CAP COM are joining forces following a decision made this week by the executives of two federal credit unions headquartered in the New York Capital region.
The unanimously approved merger is expected to create a new $ 8 billion credit union.
The boards of directors of SEFCU and CAP COM, which have studied a potential merger, have found a coherent mission, a common goal and a shared vision that prioritizes their employees, their members and their communities, according to a press release from the cooperatives of credit.
To that end, board members voted unanimously in July to approve a merger of equals, creating “a financial and community powerhouse headquartered in the capital region” that will become fully integrated into the next year, according to the statement.
The new merged entity will be renamed to reflect the respective histories and shared values ââof the two organizations, which are rooted in the credit union philosophy of âPeople Help Peopleâ for all stakeholders.
This merger is subject to the standard due diligence review corresponding to a transaction of this size and complexity.
Employees were briefed on this development by the presidents and CEOs of each organization on Thursday.
The merger of SEFCU and CAP COM is based on three essential criteria: attachment to employees and their careers; value for our members and their communities; and the ability to succeed in a market that is expected to experience significant changes and the consolidation of like-minded credit unions.
âWe are excited to explore this potential opportunity to become stronger together. As like-minded, mission-driven credit unions that share a commitment to our employees, members and community – this represents an exciting opportunity to continue to expand our award-winning service to members in New York State, while continuing to invest in technology it makes banking more convenient, âCAP COM President and CEO Chris McKenna said in the release. “We look forward to continuing the process, with the intention of merging in 2022.”
When CAP COM and SEFCU join, there will be no unification-related layoffs, the statement said. Rather, the creation of the new financial institution should provide the scale needed to create greater opportunities for existing employees, the need for additional team members, and significant advancements in products, services and support for community members and partners.
This effort will create the capital region’s largest financial institution based on local deposits and one of the state’s five largest credit unions. The unified financial institution will also become one of the top 30 credit unions in the country.
Currently, CAP COM is a member-owned financial institution with over $ 2 billion in assets and 12 branches. The credit union was established in 1953 and has over 140,000 members.
Founded in 1934, SEFCU is one of the 50 largest credit unions in the United States with over $ 5 billion in assets, over 350,000 members and over 50 branches in the Capital Region, Binghamton, Syracuse and Buffalo.
The due diligence process and regulatory approval of the National Credit Union Administration and the New York State Department of Financial Services, as well as member voting, will likely require a transaction effective date in 2022.