AT THE CUMBERLANDCREDIT UNIONWE ARE DEDICATED TOSERVING OUR COMMUNITY.Communications to Cumberland and District Credit Union MembersUpdate on Merger Discussions...April 24, 2012 In October of last year, the Board informed the membership that they were entering into merger discussions with Coastal Community Credit Union. It has been several months since there have been any status updates on these discussions. It was only 15 year ago that there were more than 100 credit unions in British Columbia. Since 1997 that number has reduced to 45 credit unions. The good news is that, while the number of credit unions reduced by more than 50%, the combined assets of the credit union system more than doubled. The membership also increased dramatically over this period. Consolidation appears to have been good for the Credit Union System. Why has there been such a broad consolidation of credit unions? The primary reason is the high cost of being independent. Whether a credit union has assets of $20 million or assets of $10 billion, it has to operate within the same regulations and meet the same minimum standards of financial performance. Small credit unions are finding it increasingly difficult to afford the expertise and resources needed to meet the expectations. A second reason for consiolidation is that larger credit unions are able to offer a broader range of services than a small independent credit union like Cumberland and District Credit Union. Wealth management and insurance are mainstream financial services now, and not having these in the service offering is a serious competitive disadvantage. Both of these conditions are challenges for our Credit Union in Cumberland. When a change occured at the General Manager level in 2011, it was an appropriate time for the Board to consider all options for our Credit Union's future. This included the option of a merger. Since Coastal Community Credit Union operates in the same market as CDCU, it was reasonable to approach them first. In the months since the original announcement last fall, the two Credit Unions have met several times for discussion and have performed extensive due diligence reviews. As it turned out, there was not a compelling case that offered sufficient benefits for both Credit Unions. It was mutually agreed that CDCU should explore other merger options to see if a better fit could be made. To this end, the Board has asked First Credit Union (from Powell River) and Union Bay Credit Union for merger proposals, and both have agreed to do so. This step was taken on April 16th, and proposal results are expected in late May. Board of Directors Cumberland and District Credit Union If you have any suggestions or questions on how we can help you or your organization, please send us an email or visit us at the branch. We're here for you and your community. Visit a Credit Union today and make the switch. creditunionsofbc.com/switch
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