MVCU chair Charlie van Arnam made that announcement during MVCU’s 39th annual general meeting at the Pomeroy Inn & Suites March 21.
Van Arnam stressed the two credit unions are just in the very early stages of exploring the idea. Much more study and research has to be done by both groups – and a merger would have to be approved by both memberships.
Should all that happen, then the merger would take effect Aug. 1 this year, he said.
Van Arnam said there are advantages for both parties.
He said MVCU brings “areas of expertise in business banking, centralized documentation, wealth management, estates, fraud risk management.”
He said EDSCU brings “a new community into the credit union that is well positioned for future growth and expansion.”
If the merger does take place, the new credit union would have a branch network of 13 locations across Central Alberta.
Van Arnam said the process began last fall when Eckville Credit Union requested information supporting a potential merger from several credit unions. Mountain View submitted a proposal.
“The respective boards feel that our two credit unions are a natural fit, as we share similar values, priorities and commitments to our employees, our members and our communities,” van Arnam said.
“We believe we are like-minded in approaching this merger as partners that would result in a new organization that would serve both our memberships.”
The next big step is for both boards of directors to meet individually to review the concept paper and decide if more formal discussions should continue. MVCU was expected to hold its meeting on that question shortly after the AGM.
If both boards decide to proceed further with a possible merger, “we will develop a business case, bylaws and an amalgamation agreement,” van Arnam said.
In May, the two boards would individually analyze that business case and decide if an amalgamation would be in their best interest.
If both boards decide to proceed, then they would notify the Credit Union Deposit Guarantee Corporation and hold meetings with their respective memberships.
If the memberships of both credit unions vote in favour of it, the amalgamation would take effect on Aug. 1 this year.
Van Arnam stressed the merger will only happen if it’s of benefit not only to both credit unions, but also their staff and membership.
“A merger of our credit unions must create a tangible value and benefits for the members of both credit unions,” van Arnam said.
“Our employees will be our champions and must see benefits for the members, for the credit union and for themselves. We will also retain all skills and valuable personnel in this process.”
“We are in the process of this, but we believe it is an exciting opportunity for both credit unions, for all of our memberships and we look forward to it,” van Arnam said.
“We will build a new credit union together.”
“The respective boards feel that our two credit unions are a natural fit, as we share similar values, priorities and commitments to our employees, our members and our communities.” CHARLIE VAN ARNAMCHAIR MOUNTAIN VIEW CREDIT UNION