by PAUL RAYNER

In order to facilitate growth, offer better services to members and with a commitment to continued community involvement, five credit unions in Southwestern Manitoba have decided to put an amalgamation plan in front of their collective membership.

On February 5, the Boards of Directors of Cypress River, Hartney, Tiger Hills, Virden and local Turtle Mountain Credit Unions announced they had signed an amalgamation agreement that would see their merger. According to TMCU Board President Evan Casselman, the merger was an opportunity for all to grow during good times.

“First of all, the way things are going with credit unions in the province, there are a lot of huge amalgamations,” Casselman stated. “It would be naïve to think we would be able to be sitting here as an independent credit union long into the future. We are all strong right now, all doing well. If something were to happen in the future where we weren’t doing well, and then amalgamated, it would not be by choice. We were all negotiating from a positive point of view, not a negative one.”

According to TMCU general manager Keith Wooldridge, the local credit unions were always talking with each other’s neighbours. The proper discussions started in the fall, moving through meetings with a facilitator, before an agreement was reached and decisions made.

“Basically, these credit unions were very like minded,” Wooldridge said. “You want to make sure you are with like minded credit unions when you’re thinking about amalgamation.”

The merger would see one larger institution, the eighth largest credit union in the province. Their combined assets would be $401,313,860 ($51,082,246 from TMCU). The membership would be 16,284. There would be 12 branch locations. Hartney, in fact is the only one with a single branch. Cypress River includes a branch in Baldur as well as its namesake community, while Tiger Hills operates in Treherne and Holland. The largest is Virden, which has branches in Virden, Reston, Melita and Waskada. Turtle Mountain operates in Boissevain, Deloraine and Minto.

“It will help us expand our products and services,” Casselman explained, “because of better cost efficiency. There will be 16,000 members, and now we will have branches from Reston to Treherne. It allows us to compete better in the marketplace.”

As credit unions are set up to be locally owned and operated financial institutions, and thereby contribute to their communities, sometimes concerns can arise from amalgamations from the standpoint of dedication to local areas. In this process, however, that grassroots commitment was part of what was pointed to by them being “like minded”.

“The effect on communities was important,” Casselman said. “When we were looking at this amalgamation, it was what our board members were looking at, our community-based philosophy. If we have a bigger credit union, what happens to that? It was something all five of us wanted to happen, to have the community-based philosophy to continue.”

Wooldridge agrees.

“In my mind,” he stated, “all five of the credit unions involved have the exact same end, all think alike about the grassroots, focusing on the communities.”

There is a commitment not to close branches, as the move is about expanding, not reduction. As well, all five Boards of Directors have made a commitment to no job losses; demotions or salary cuts due to the proposed merger. In fact, benefits for employees, like the 18 with TMCU, are there.

“It will be good for staff,” explained Casselman. “They were a little nervous at first, but now I think they’re excited. There will be more opportunity for training and advancement.”

At almost the same time as the announcement of merger plans, the Turtle Mountain Credit Union lost one of its founders. Wilfrid Brake was a charter member of the Wassewa (later Boissevain) Credit Union, incorporated in April 1941 and was part of the provisional board that planned for that day. He was part of the original Board of Directors and Credit Committee, and also served as president and secretary. He passed away on January 29.

In the Turtle Mountain Credit Union, the merger is not a completely new topic. In fact, it was created in 2001 by the amalgamation of Boissevain Credit Union, which operated a branch in Minto, and the Deloraine Credit Union. A successful creation, the board president feels it played somewhat of a role in the new proposal.

“I think it made us more open to it. It was a learning curve for what the process was. It was a benefit for us, with our growth quite steady. It had a positive impact.”

Should the merger go ahead, they plan to begin operating on October 1, 2008. They plan to have four board members from Virden, with two each from the other present institutions. The formula was reached due to asset size and branch numbers. A new name would be chosen somewhere before the official operating date. Wooldridge added they would have one general manager, with the head office determined by that choice.

“The head office will be determined by where the CEO is,” Wooldridge stated. “When that person is named, that is where it will be. The head office is not an ivory tower, and members of the executive team will represent a wide area.”

Of course, nothing is certain as of yet. As Wooldridge said, the boards have signed an agreement on the condition the members ratify it. Information has been sent to all of the members and each has a scheduled meeting to vote on the proposal. The Turtle Mountain meeting is set for February 21, for Boissevain School. Should the membership vote in favour, the merger will occur. Casselman said the key is for members to look at all of the information before making a decision.

“I think if they look at the big picture and look at the information, they will support the move,” the president stated. “Education is important. If they get the information, they can make the right decision. It is very exciting.”

“We will be able to compete and continue to compete in the marketplace,” Wooldridge said. “Our rates and service fees can be better, because we can spread it out. We will be able to give the best service at the best price.”