The boards of directors of the CAP COM and SEFCU credit unions approved on July 28 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 to reflect the respective histories and common values of both organizations, which are rooted in the credit union philosophy of “People helping People” for all stakeholders, officials said.
According to the companies, merging SEFCU and CAP COM is supported on three critical criteria: dedication to employees and their careers; value to our members and their communities; and the ability to succeed in a marketplace that is expected to see significant change and the consolidation of like-minded credit unions.
SEFCU also recently bought the office building along Route 9 in Malta near Ellsworth Commons where a SEFCU branch is located, as well as Ellis Medicine offices.
SEFCU paid $3.8 million for the building at 2537 Route 9 in Malta, according to a deed filed in the Saratoga County clerk’s office.
“We are excited to explore this potential opportunity to become stronger together,” said CAP COM President and CEO Chris McKenna of the merger. “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.”
When CAP COM and SEFCU join, there won’t be any layoffs related to the unification, officials said.
“In fact, the creation of a brand new, $8 billion financial institution will provide the scale necessary to create greater opportunities for existing employees, the need for additional team members, and significant advancements in products, services, and support for members and community partners,” said a statement the credit unions released.
“This effort will create the largest financial institution in the Capital Region based on local deposits, and one of the top five credit unions in the state. The unified financial institution will also become one of the top 30 credit unions in the nation.”
SEFCU President and CEO Michael Castellana said the merger “will allow us to expand our reach and positive impact on our members and the communities we serve. 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.”
The robust due diligence process and regulatory approval of both the National Credit Union Administration and the state Department of Financial Services, and the membership vote, will likely require an effective date of the transaction in 2022.
CAP COM is a member-owned financial institution based in the Capital Region 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.
Established in 1934, SEFCU is among the 50 largest credit unions in the U.S. with more $5 billion in assets, more than 350,000 members, and more than 50 branches in the Capital Region, Binghamton, Syracuse, and Buffalo.