Hudson Valley CU to acquire New York-based Catskill Hudson Bancorp for $28.6M

Kingston, NY-based Catskill Hudson Bancorp Inc. and subsidiary Catskill Hudson Bank will merge with Poughkeepsie, NY-based Hudson Valley CU, with the credit union becoming the surviving institution.

Under the terms of the deal, Catskill Hudson Bancorp stockholders will receive $40.50 in cash for each common share they hold, representing aggregate consideration of about $28.6 million.

At announcement, S&P Global Market Intelligence calculates the deal value to be 72.35% of common equity and tangible common equity, 5.20% of deposits, 4.82% of assets and 24.26x earnings.

S&P Global Market Intelligence valuations for bank and thrift targets in the mid-Atlantic region between Jan. 10, 2023, and Jan. 10, 2024, averaged 115.85% of book and 118.78% of tangible book and had a median of 10.45x last-12-months earnings, on an aggregate basis.

The merger is expected to be completed during the second half of this year.

With the deal, Hudson Valley CU will have total assets of roughly $7.4 billion and 32 full-service branches throughout the Hudson Valley and Capital Regions in New York. The credit union will also acquire corporate offices in Kingston, Middletown and Malta.

Based on S&P Global Market Intelligence data, Catskill Hudson Bank operates 11 branches in New York, ranked No. 164 with a 0.01% share of about $3.49 trillion in total market deposits.

After the completion of the deal, former Catskill Hudson Bank branches will operate under the Hudson Valley Credit Union name and brand, and Catskill Hudson Bancorp's common stock will no longer be quoted on the OTC markets. Catskill Hudson Bank Chairman and CEO Mario Martinez will serve as a senior market president.

Honigman LLP is the legal adviser to Hudson Valley CU. Luse Gorman PC is the legal adviser to Catskill Hudson Bancorp and Catskill Hudson Bank.

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