LATHAM, N.Y.–Sunmark Credit Union here is looking to surpass $1 billion in assets in 2021 and is planning to use mergers as a primary way of getting there.
In an interview with the Albany Business Review, CEO Frank DeGraw said part of its strategic plan is to grow by taking in other credit unions.
"We’re open as far as merger opportunities to all of the areas we are currently chartered for," DeGraw told the Business Review. "The size really doesn’t matter, as far as opportunity."
The $806-million Sunmark has in recent weeks announced it is merging in the $36-million Columbia-Green FCU in Hudson, N.Y., and the $70-million Hudson River Financial FCU in Mohegan Lake, N.Y.
DeGraw told the publication Sunmark is looking at other mergers as well, saying the coronavirus has played a role in driving those conversations as the CEOs and boards of smaller credit unions consider mergers as part of their solution to the pandemic. DeGraw told the Business Review he would be willing to make acquisitions of credit unions as small as $1 million in assets and that what matters most is the potential for growth.
‘Makes Sense, If…’
"A merger makes sense if, No. 1, it benefits their membership, where Sunmark can bring value to their membership where they weren’t previously seeing value," DeGraw was quoted as saying. "We also look at the area and the opportunity for growth within that area. Is there an opportunity to continue growing membership in the area where that credit union is located?"
According to Albany Business Review, Sunmark has plans to expand organically too and is opening two new branches.
"Growing membership is most important. We want to remain relevant and sustainable, we need to continue to see membership growth," DeGraw told the Business Review. "Over the past five years, just through organic growth, we’ve been growing our membership 17%. With our two mergers we’re going to be taking on this year, we’ll have grown membership 33% over a five year period."