Hudson Valley Credit Union to Acquire Catskill Hudson Bank
Hudson Valley Credit Union (HVCU) announced today that it has entered into a definitive merger agreement with Catskill Hudson Bank and its parent company Catskill Hudson Bancorp, Inc. (OTCPK: CSKL) ("Catskill Hudson"), pursuant to which Catskill Hudson Bank will merge with and into HVCU, with HVCU as the surviving institution in a series of transactions. Pursuant to the merger agreement, which was approved by the boards of directors of HVCU, Catskill Hudson and Catskill Hudson Bank, Catskill Hudson stockholders will receive $40.50 in cash for each share of Catskill Hudson common stock held, representing aggregate consideration of approximately $28.6 million.
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. Upon completion, HVCU will have total assets of approximately $7.4 billion and will increase its footprint to 32 full-service branches throughout the Hudson Valley and Capital Regions, and acquire corporate offices in Kingston, Middletown and Malta.
Hudson Valley Credit Union President and CEO Jonathan Roberts commented, "This is an important moment in our growth story. 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."
"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," stated Mario L. Martinez, Chairman & CEO of Catskill Hudson Bank. "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."
Under the merger agreement, Mr. Martinez will serve as a Senior Market President.
The merger is expected to be completed during the second half of 2024 after the satisfaction of customary closing conditions, including receipt of all required regulatory approvals and approval of Catskill Hudson's stockholders. Following completion of the transaction, the former Catskill Hudson Bank branches will operate under the Hudson Valley Credit Union name and brand and Catskill Hudson common stock will no longer be quoted on the OTC markets.
Honigman, LLP is serving as legal advisor to Hudson Valley Credit Union. Luse Gorman, PC is serving as legal advisor to Catskill Hudson and Catskill Hudson Bank.