OLDS - Members of ConnectFirst Credit Union are being asked whether they support the proposed merger of the financial institution with Servus Credit Union.
There are ConnectFirst Credit Union has more than 40 branches in central and southern Alberta. Edmonton-based Servus Credit Union has 102 branches.
Servus Credit Union members voted 84 per cent in favour of the proposed merger during a special general meeting Sept. 19.
A special general meeting for ConnectFirst members will be held on Nov. 9 at the BMO Centre in Calgary, where members will be asked to vote in favour or against the proposed merger.
According to a release from the companies, Servus and ConnectFirst entered into an amalgamation agreement on Aug. 1, 2023 “pursuant to which ConnectFirst and Servus propose to merge and combine their respective operations into one entity” in accordance with the Credit Union Act.
If approved the new entity would have more than $30 billion in assets and would serve approximately 500,000 residents in 80 Alberta communities.
The legal name of the combined credit unions would be “Connect First and Servus Credit Union Ltd.” However, it is intended that operations in which both credit unions operate will continue under their current brand names for a period of time, officials said.
“Following completion of the proposed merger, we will explore a brand refresh that continues to recognize the distinctness of both credit unions while creating a joint brand,” officials said.
If approved the merger would see common shares held by members in either credit union exchanged for the same number of common shares in the merged credit union.
Investment shares of any series held by members in either credit union would be converted into an equal number of investment shares of the merged credit union.
The merged credit union would continue to serve all communities currently served by ConnectFirst and Servus, officials said.
“This merger will enable us to build something new, powered by over 3,000 dedicated employees,” officials said. “This will not only position us alongside major banks and fintech companies but allow us to thrive alongside them.”
Regarding employment at the merged credit union, officials said, “We understand this issue is of great importance to employees and the members they serve. All employees will be offered a role in the new credit union and layoffs will not occur as a result of this merger.
“New opportunities will be available in the new, larger organization, such as different roles, career paths and professional growth opportunities. It is expected that this merger would have significant benefits for members, including enhanced member experience.”
ConnectFirst and Servus have created a website (greater together.info) with further information on the proposed merger.
On the website, Don Coulter, chief executive officer of ConnectFirst, called the proposed merger “an exciting moment for both credit unions.”
ConnectFirst will host an information session on the proposed merger at the Olds Pomeroy Inn and Suites on Nov. 2 starting at 6 p.m.
