NEWS RELEASE for March 19, 2008
Red Deer, Alberta – The members of Community Savings, Common Wealth and Servus Credit Unions voted in favour of an amalgamation of the three entities at their respective meetings. The new credit union will commence operations November 1, 2008 with approximately $9 billion in assets and will serve Alberta members from border to border.
The amalgamation resolution was voted on by the membership of each credit union. The results were 92% in favour at Servus Credit Union’s annual meeting in Edmonton on March 12, 99% in favour at Common Wealth’s annual meeting in Lloydminster on March 13, and 99% in favour at Community Saving’s special general meeting in Red Deer on March 18.
The new Board of Directors made a statement following the final positive vote. "We are ecstatic that our vision has been enthusiastically endorsed by our members. This is history in the making as creating a province-wide credit union will increase the relevance and uniqueness that a credit union offers to Albertans both today and in the future."
By voting yes to this recommendation, the members of the three founding credit unions have signaled their desire for greater connectivity and broader geographic access, as well as their appreciation of the superior service for which credit unions are known.
The new Board adds, "These key service attributes along with a vision of a broader range of product offerings and service channels and our 100% deposit guarantee will give the new credit union a strong advantage as it takes its place among the most competitive financial services providers in the province."
The approach taken to achieve the merger was unprecedented.
- It is a merger of "equals of different sizes". Each brings different strengths to the table and this has been recognized by appointing an equal number of directors from each of the founding credit unions.
- The merger process has been defined by a broad vision and common beliefs, and not by functional details.
- It is unusual to have more than two large credit unions come together at the same time. Servus, Common Wealth and Community are three of the four largest credit unions in Alberta, and are among the largest in Canada.
- And, finally, the merger will create the first credit union in Canada to provide branch access throughout an entire province.
The vision and approach reflect the progressive perspectives of the three founding credit unions and the innovation that will shape the new credit union that has been created.
The twelve new Board members, four from each of the founding credit unions, were named in the amalgamation agreement. The new Board is: Bill Anhorn, Terry Cooper, Peter Elzinga, Peter Galloway, Doug Hastings, Merv Loewen, Stan Odut, Bob Porozni, Greg Preston, Penny Reeves, Lloyd Robinson, and Alison Starke.
The Board of Directors will begin their transition and governance work immediately. The first point of business will be to select a Chairman of the Board of Directors and President and CEO by the beginning of May. The Board will also begin working on a detailed governance process, building a strategic plan, establishing a head office, engaging key stakeholders in further communication and determining a name for the credit union. The Board of Directors will undertake a name selection and branding strategy review prior to registering the Articles of Incorporation November 1, 2008.
The new credit union will be the third largest in Canada. It will employ 1925 employees and serve approximately 400,000 members in 63 Alberta communities through 92 locations. At fiscal year end of October 31, 2007, the combined credit union assets totalled $8.58 billion with $93 million in income prior to profit sharing and taxes. The members of the three credit unions received $33 million in cash and dividends as a result of 2007 results.
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| Media inquiries should be directed to: |
| Jan Fisher, Community Savings |
403.342.9212 or 403.588.3833 |
| Gail Stepanik-Keber, Servus |
780.638.8011 or 780.913.7629 |
| Pierre Amyotte, Common Wealth |
780.733.8011 or 780.910.4077 |
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