A New Billion-Dollar Credit Union Is in The Making
St. Lawrence FCU members will vote on whether to approve its merger with SeaComm CU on Aug. 28.
Members of the $230 million St. Lawrence Federal Credit Union will meet on Aug. 28 to vote on whether to merge with the $806 million SeaComm Federal Credit Union. If members approve the proposal, it will create a new billion-dollar financial cooperative in New York.
According to the Ogdensburg-based St. Lawrence’s notice of a special meeting to its members, its president/CEO, Todd Mashaw, plans to retire on Sept. 30.
In addition to receiving the remainder of his 2023 salary that amounts to $54,999, Mashaw will also receive one year salary as part of his employment agreement that includes a change in control contractual provision, as well as health benefits until age 65.
According to the special meeting notice filed with the NCUA in late June, he will receive a salary payout of $223,000 and $52,800 to cover his health benefits.
In addition to retaining St. Lawrence’s employees, the Massena-based SeaComm will keep St. Lawrence’s branches open for an initial period of five years. After that, SeaComm plans to evaluate the need and profitability of each branch. St. Lawrence branch signage will remain for a minimum of five years.
St. Lawrence’s net worth of 10.46% (peer average, 10.98%), at the end of the first quarter, will be transferred to SeaComm at the time of the completed merger. At the end of the second quarter, SeaComm posted a net worth of 13.96%, according to the NCUA financial performance reports. No peer average was available for the second quarter.
“This merger will take two like-minded, member-focused, similarly cultured, highly compatible North Country credit unions into one even stronger. Both credit unions know the value of being there for our members, employees and the communities we do business,” St. Lawrence said in its special meeting notice to members. “We both make lending decisions in our branches and work hard to make decisions that will always have a positive impact on our members. Both do what is right for our members. That said, we are in a unique strategic position today in that we can build upon two long-standing, well-run organizations that know our members and what the needs of our communities are all about. We will be stronger together than apart.”
In addition to managing $1 billion in assets, the combined organization would have a loan portfolio of more than $588 million with 200 employees who would operate 16 branches and serve more than 66,000 members.