Central 1 and Credit Union Central Alberta discuss merger
Central 1 Credit Union and Credit Union Central Alberta Ltd. have agreed to being in talks on a possible merger. The two credit unions say they will analyzes whether a merger will enhance core services to more than 190 credit unions in B.C., Alberta and Ontario.
“During this process, the centrals will evaluate whether an opportunity exists through consolidation, to achieve efficiencies, offer a stronger liquidity structure, greater diversification of funding sources and better capacity in the areas of finance, payments and trade services,” the companies said in a joint statement.
“Any proposal to merge would be subject to the approval of regulatory authorities and the boards of directors and shareholders of both centrals.”
“These discussions are timely considering the changing landscape of the credit union system,” the companies added. “The growing trend of individual credit unions merging is resulting in larger credit union organizations with a greater concentration of assets and members and more complex service needs. The centrals will evaluate whether a merged central could more effectively meet the needs of credit unions in the long term.”
“Pursuing these discussions with Central 1 will allow us to fully analyze how our combination might enhance our capacity to better meet the needs of credit unions and support their continued expansion in the marketplace,” says Graham Wetter, Alberta Central’s President and Chief Executive Officer.
Don Rolfe, Central 1’s President and Chief Executive Officer, noted that, “A merger of our organizations would be another step towards the development of a strong, national organization to support Canada’s growing and vibrant credit union system. To effectively support credit unions, we need to look at ways to leverage our collective strengths.”
Vancouver-based Central 1 holds $15 billion in assets and employs more than 550 people, representing 45 credit unions in B.C. and 11 in Ontario serving more than 2.9 million members.
Alberta Central is headquartered in Calgary, representing 36 credit unions from across the province. It has assets of more than $1.9 billion and about 230 staff.
