St. Lawrence FCU Members Soundly Defeat Merger With SeaComm FCU

Members of the $234 million St. Lawrence Federal Credit Union (SLFCU) in Ogdensburg, N.Y., soundly defeated a proposed merger with the $806 million SeaComm Federal Credit Union in Massena, N.Y., which would have created a $1 billion financial cooperative in the Empire State’s North Country.

During a special meeting on Monday, 2,428 SLFCU members voted against the consolidation and 1,023 voted in favor of it.

“I believe there was a lot of misinformation spread that people believed,” SLFCU President/CEO Todd Mashaw said. He added he believes there was an organized effort to oppose the merger based on the comments he read on social media sites. Some members even posted yard signs urging to vote no on the consolidation.

“I’ve seen too many signs saying Vote No,” a member wrote on Facebook in July when the credit union announced the merger proposal had gotten the green light from the NCUA. “I’m saying Vote YES.”

But four months earlier in March, when SLFCU and SeaComm officially announced the proposed consolidation, 90 people posted their reaction comments on Facebook, which showed many members were less enthusiastic about the news. Some members wrote they opposed the merger because they valued SLFCU’s personalized service, ease of financing and low-cost account fees.

“It’s evident that no members of SLFCU want this to go through … we all bank with the CU because we are a person to them,” wrote one SLFCU member. “We will be nothing more than an account number at SeaComm. Thanks. But definitely no thanks!”

“Sorry not in favor of this,” wrote another SLFCU member. “I went to SLFCU because of the ease of banking, to change accounts, loans and savings will not be easy. I like being a person not just an account.”

A few members, however, wrote that they supported the proposal.

“This is a great opportunity, although change can be tough/concerning, the focal point should truly be on progress,” a member wrote. “I can see this paving the way for more competitive rates, increased mobile/online banking capabilities as well as the possibility for new and improved financial products and services. No one is just a number in this area unless you’re with some large institution that doesn’t have a branch or operations around here.”

Mashaw said SLFCU believed merging with SeaComm was the right move at the right time.

“The credit union industry is rapidly changing which puts smaller credit unions, like ours, in a tougher position to compete and survive,” he said. “This is something we have stated throughout this process. That fact does not change because the merger was voted down.”

In July, SLFCU posted on its website a CU Times article that reported the $2.7 billion AmeriCU field of membership expansion plan would include St. Lawrence County. The county is about 120 miles north of Rome, N.Y., where AmeriCU is headquartered.

“The population and jobs of St. Lawrence County are decreasing, as evidenced by the U.S. Census,” SLFCU noted. “The only way for AmeriCU to gain membership is to attract our and other credit union members away and they have the size and capability to do this.”

However, SLFCU also added a rather ominous warning as well.

“If this merger is voted down, there will have to be changes to St. Lawrence FCU so we can try to survive in an environment that is completely different than what we all have been accustomed to in the north country,” the credit union said.

SLFCU did not specify what those changes would be.

“At this time we will continue as St. Lawrence Federal Credit Union being there for your financial needs,” Mashaw said. “Thank you for your continued membership. We wish SeaComm much success and look forward to a continued great relationship with them.”

Scott Wilson, SeaComm’s president/CEO, declined to comment on why the proposed merger failed.

Instead, he issued this prepared statement:

“We are disappointed with the final outcome of the membership vote. SeaComm wishes the membership and staff of St. Lawrence all its best. We extend our gratitude to the senior management team of St. Lawrence who worked hand in hand with us to try and make this merger happen. SeaComm will move forward on a separate path and continue to offer the very best value to our membership, staff, and the communities in which we serve. Also, in the cooperative spirit of the credit union movement, we have and will continue to have a good relationship with St. Lawrence.”

Because most mergers get the nod from members, it is indeed a rarity when they reject a consolidation, according to the NCUA. Nevertheless, since 2020, members at three credit unions nixed consolidation plans.

Last October, the $224 million InFirst Federal Credit Union in Alexandria, Va., rejected a proposed merger with the $481 million Arlington Community Federal Credit Union in Falls Church, Va.

Additionally, during the summer of 2020, members of the $87.3 million N.W. Iowa Credit Union in Le Mars, Iowa turned down a consolidation with the $259 million Siouxland Federal Credit Union in South Sioux City, Neb., and members of the $93.7 million Partners Financial Federal Credit Union in Glen Allen, Va., rejected a merger with the $95.5 million People’s Advantage Federal Credit Union in Petersburg, Va.