Merger to create expected $8 billion credit union

ALBANY, N.Y >> SEFCU and CAP COM are joining forces following a decision made this week by leaders from both federal credit unions headquartered in New York’s Capital Region.

The unanimously approved merger is expected to create a new $8 Billion Credit Union.

The SEFCU and CAP COM boards of directors, which have been exploring a potential merger, found a consistent mission, common purpose and shared vision that prioritizes their employees, members and communities, a press release from the credit unions said.

To that end, board members unanimously voted in July, to approve a merger of equals, creating “a Capital Region-headquartered financial and community powerhouse” that will become fully integrated next year, according to the release.

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.

This merger is subject to the standard due diligence review commensurate with a transaction of this size and complexity.

Employees were informed of this development by the President and CEOs of each organization on Thursday.

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.

“We are excited to explore this potential opportunity to become stronger together. As likeminded, 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,” CAP COM president and CEO Chris McKenna said in the release. “We look forward to continuing the process, with the intent to merge in 2022.”

When CAP COM and SEFCU join, there will not be any layoffs related to the unification, the release said. Rather, the creation of the new financial institution is anticipated to 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.

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.

Currently, 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.

Established in 1934, SEFCU is among the 50 largest credit unions in the U.S. with more than $5 billion in assets, more than 350,000 members, and more than 50 branches in the Capital Region, Binghamton, Syracuse and Buffalo.

The due diligence process and regulatory approval of both the National Credit Union Administration and the New York State Department of Financial Services, and the membership vote, will likely require an effective date of the transaction in 2022.