Hudson Valley Credit Union to Buy Catskill Hudson Bank for $28.6 Million
If the proposed deal is approved, HVCU will grow its market presence in New York’s capital region and expand business banking offerings.
The $6.8 billion Hudson Valley Credit Union (HVCU) in Poughkeepsie, N.Y., said Wednesday it inked a definitive merger agreement to acquire the $592 million Catskill Hudson Bank in Kingston, N.Y., for $28.6 million.
The first credit union-bank purchase deal of the New Year is expected to close during the second half of 2024, pending regulatory and shareholders’ approvals.
Founded in 1993, Catskill Hudson’s 85 employees operate 11 branches that serve 7,500 customers. The bank managed $539 million in total deposits, $39.5 million in equity and posted income of $546,000 at the end of the third quarter.
This merger accelerates HVCU’s growth in the Capital Region and Sullivan County and expands its business banking offering with an additional commercial book of business, the credit union said in its prepared statement.
HVCU’s 904 employees operate 23 locations that serve a membership of 352,466.
If the proposed deal is completed, HVCU will manage total assets of approximately $7.4 billion, increasing its footprint to 32 full-service branches throughout the Hudson Valley and Capital Regions, and acquire corporate offices in Kingston, Middletown and Malta.
“This is an important moment in our growth story,” HVCU President/CEO Jonathan Roberts said. “Welcoming the Catskill Hudson customers and employees to the credit union will create a stronger institution than either of us were individually. Together, we will advance our mission by serving members in the northern counties of our current field of membership and expand our service to include Sullivan County to the west.”
Under the merger agreement, Mario L. Martinez, chair and CEO of Catskill Hudson Bank, will serve as HVCU’s senior market president.
“It was extremely important for us to partner with an organization that shares similar values, and we found that in Hudson Valley Credit Union. I am confident that HVCU will bring many benefits to our employees and customers for years to come,” Martinez said. “With Hudson Valley Credit Union’s deep breadth of financial products and services, our customers will have even more opportunities to thrive with a financial partner that puts their well-being at the forefront – just as we have done for the past 30 years.”
The proposed acquisition is HVCU’s first bank buy deal.