ALBANY — The board of directors for both SEFCU and CAP COM agreed to a “merger of equals,” combining two of the largest credit unions in the Capital District to create a new $8 billion institution.
The merger was announced in a joint statement on Thursday, July 29. Leaders of each credit union said they had “been exploring a potential merger… [and] throughout our discussions, we have found a consistent mission, common purpose, and shared vision that prioritizes our employees, members, and communities.”
To that end, the CAP COM and SEFCU Boards of Directors unanimously voted yesterday, July 28, to approve a “merger of equals,” creating a Capital Region-headquartered financial and community powerhouse that will become fully integrated next year.
The newly combined entity will be renamed. The merger must first go through the standard due diligence and regulatory approval of both the National Credit Union Administration and the New York state Department of Financial Services. It must also be approved by stakeholders from each side.
Each Board of Directors voted unanimously on the decision the previous day and employees were informed just prior to the public announcement. Both organizations said there will be no layoffs related to the merger. The merger is anticipated to be final by next year.
“We are excited to explore this potential opportunity to become stronger together,” said CAP COM President and CEO Chris McKenna. “As like-minded, mission-driven credit unions who share a commitment to our employees, members, and community – this represents an exciting possibility to continue to expand our award-winning service to members across New York State, while continuing to invest in technology that makes banking more convenient. We look forward to continuing the process, with the intent to merge in 2022.”
The combination of the two organizations is expected to create the largest financial institution in the Capital District based on local deposits. It should also emerge as one of the top five credit unions in the state and be among the top 30 credit unions in the nation.
“Along with growing in size, this alignment will allow us to expand our reach and positive impact on our members and the communities we serve,” said SEFCU President and CEO Michael Castellana. “CAP COM and SEFCU share similar values, culture, and commitment to community. We plan to apply the ‘best of both worlds’ principle in everything we do as we integrate our approach to supporting employees, members and the community. We are also excited about advancing our purpose-driven mission in new and exciting ways from expanding and enhancing our products, services, and support for our members, to offering deeper, more meaningful financial and volunteer contributions to nonprofit organizations.”
SEFCU is among the 50 largest credit unions in the country, with more $5 billion in assets, more than 350,000 members and more than 50 branches across the state.
CAP COM is a member-owned financial institution with more than $2 billion in assets and 12 branch locations. The credit union was established in 1953 and has more than 140,000 members.