Hudson Valley Credit Union to Acquire Catskill Hudson Bank

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Hudson Valley Credit Union (HVCU) announced a definitive merger agreement with Catskill Hudson Bank and its parent company Catskill Hudson Bancorp, Inc. (OTCPK: CSKL). Catskill Hudson Bank will merge with and into HVCU, with HVCU as the surviving institution. 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. The merger accelerates HVCU's growth in the Capital Region and Sullivan County, expanding 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.

POUGHKEEPSIE, N.Y. and KINGSTON, N.Y., Jan. 10, 2024 /PRNewswire/ -- 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. 

About Hudson Valley Credit Union
With $7 billion in assets, Hudson Valley Credit Union has been a community partner in the region for 60 years. The credit union currently serves consumers and businesses in Albany, Columbia, Dutchess, Greene, Orange, Putnam, Rensselaer, Rockland, Saratoga, Schenectady, Ulster, and Westchester Counties in New York State with a wide variety of financial services, including investments and insurance. Recently awarded a Great Place to Work designation, HVCU is federally insured by the NCUA and is an Equal Opportunity Lender. To learn more, visit hvcu.org.

About Catskill Hudson Bank
Established in 1993 in Sullivan County NY, Catskill Hudson Bank opened its first branch in Monticello located in the heart of the Catskill Mountain Range. The stock is traded under the symbol CSKL. The direction and goal of Catskill Hudson Bank has been to maximize growth opportunities, by expanding its market beyond Sullivan County to Orange, Ulster, Saratoga and Albany Counties. The Bank is comprised of eleven branches: nine in the Mid-Hudson Region and two in the Capital District. The Bank offers traditional, online, and mobile banking services to both consumers and businesses.

Forward Looking Statements
This press release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations. Such forward-looking statements are about matters that are inherently subject to risks and uncertainties. Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this press release or made elsewhere from time to time by Catskill Hudson or HVCU or on behalf of either of them. Catskill Hudson, Catskill Hudson Bank and HVCU disclaim any obligation to update such forward-looking statements. In addition, statements regarding historical stock price performance are not indicative of or guarantees of future price performance.

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SOURCE Hudson Valley Credit Union

FAQ

What is the merger agreement between Hudson Valley Credit Union and Catskill Hudson Bank?

The merger agreement entails Catskill Hudson Bank merging with and into HVCU, with HVCU as the surviving institution. Catskill Hudson stockholders will receive $40.50 in cash for each share of Catskill Hudson common stock held.

How will the merger affect Hudson Valley Credit Union's growth?

The merger accelerates HVCU's growth in the Capital Region and Sullivan County, expanding 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.

What is the expected completion timeline for the merger?

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.

What is the role of Mario L. Martinez after the merger?

Under the merger agreement, Mr. Martinez will serve as a Senior Market President.

Who are the legal advisors for Hudson Valley Credit Union and Catskill Hudson?

Honigman, LLP is serving as legal advisor to Hudson Valley Credit Union, while Luse Gorman, PC is serving as legal advisor to Catskill Hudson and Catskill Hudson Bank.