POUGHKEEPSIE, NY and KINGSTON, NY — The Hudson Valley Credit Union (HVCU) announced recently that it has entered into a definitive merger agreement with Catskill Hudson Bank and its parent company, Catskill Hudson Bancorp (Catskill Hudson) (OTCPK: CSKL), pursuant to which Catskill Hudson Bank will merge with and into HVCU, with HVCU as the surviving institution in a series of transactions. 

Catskill Hudson has 11 branches, nine of which are in the mid-Hudson region, including Sullivan County. It opened a new Monticello branch in March 2020, according to its website.

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.

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.

In a letter posted on the Catskill Hudson website, Catskill Hudson chairman/CEO Mario Martinez states that the credit union “is committed to retaining our employees.”