ALBANY, N.Y.–Two credit unions here have announced plans to merge to create an $8-billion institution.
The $2.55-billion Capital Communications FCU, better known as CAP COM FCU, and the $5.34 billion State Employees FCU (SEFCU) said they are seeking to combine, saying they have a “consistent mission, common purpose, and shared vision that prioritizes our employees, members, and communities.”
The credit unions said if the merger is approved the merged institution will rebrand under a new name. Plans call for the merger to be completed in 2022.
Employees of the two credit unions were informed of the proposal on July 28.
In a statement the credit unions said the merger 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.
‘Stronger Together’
“We are excited to explore this potential opportunity to become stronger together,” said CAP COM President and CEO Chris McKenna. “We look forward to continuing the process, with the intent to merge in 2022. 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.”
The two credit unions stressed the merger will not lead to any layoffs, and will instead “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.”
The CUs noted the merger 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.
Expanded Reach
“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.”
In addition to a membership vote that will be necessary, the merger proposal will now go to NCUA and the New York State Department of Financial Services.
The merged institution will have approximately 490,000 members.