Two upstate New York credit unions — SeaComm Federal Credit Union in Massena and St. Lawrence Federal Credit Union in Ogdensburg — plan to merge and form a $1 billion-asset institution in the fourth quarter.
The combined company will be able to give its members enhanced products and services, more delivery channels and better technology options than the credit unions may have been able to separately, SeaComm President and CEO Scott Wilson said in an interview.
"Especially as technology continues to evolve and obviously gets more expensive, we want to be able to give the best proposition to our membership," Wilson said.
This is the second deal in two years for the $770 million-asset SeaComm, which
St. Lawrence's president and CEO, Todd Mashaw said the $226 million-asset credit union found a "like-minded" partner in SeaComm, in that both make lending decisions in their branches.
"We are in a unique strategic position today to build upon two long-standing, well-run organizations that know our members and what the needs of our communities are all about," Mashaw said in a press release.
Mashaw will retire and will be retained as a consultant for one year following the merger. Wilson will run the combined organization, which will operate under the SeaComm brand.
Wilson said SeaComm initiated the merger talks.
"We've had a long-standing, good relationship with St. Lawrence," he said. "Obviously, there are efficiencies that we can bring together."
Under the terms of the agreement, one St. Lawrence board director will join the SeaComm Board. There will also be an advisory committee formed from the current St. Lawrence board providing advice and counsel on the overall effect of the merger.
The combined company will have more than 65,000 members and 15 branches.
SeaComm earned $7.2 million in 2022, a 1% decrease compared with a year earlier, according to call report data from the National Credit Union Administration.
St. Lawrence earned $2.4 million in 2022, essentially unchanged compared with a year earlier.
