ALBANY, N.Y. — Albany–based SEFCU, which operates branches in Central New York, says it plans to merge its operations with CAP COM, another federal credit union headquartered in New York’s Capital Region.
The boards of directors of both organizations “unanimously” voted Wednesday to approve a “merger of equals” that will become “fully integrated next year,” SEFCU said Thursday.
The due-diligence process and required regulatory approval of both the National Credit Union Administration and the New York State Department of Financial Services, along with the membership vote, will likely result in the merger closing in 2022.
The leaders of both credit unions told employees about the plans on Thursday, SEFCU said. The newly combined entity will have a new name to “reflect the respective histories and common values” of both organizations.
SEFCU and CAP COM leaders have been exploring a potential merger, and throughout their discussions, “found a consistent mission, common purpose, and shared vision that prioritizes our employees, members, and communities,” SEFCU said.
The credit unions emphasize their upcoming merger won’t result in any layoffs but 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,” per an SEFCU news release.
This effort will create a new $8 billion credit union, which the organizations say will be 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 30 largest credit unions in the nation, SEFCU said.
“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. 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,” Michael Castellana, president and CEO of SEFCU, said.