Two southwestern Ontario credit unions have announced their intention to merge.
London-based Libro Financial Group, with 59,000 owners and $2.2 billion in assets under administration (AUA), operates 16 branches. Essex-based United Communities Credit Union operates 11 branches and has more than 36,000 members with nearly $800 million in AUA.
No staff will lose employment and no retail branches will close as a result of the merger, the credit unions said Wednesday.
“We want southwestern Ontario to be the focal point of world-class financial thinking,” says Libro CEO Steve Bolton. “We want to attract and support great ideas, and give our people the best tools for the job. This merger will create the capacity to make that happen.”
As credit unions, the merger must be member-ratified before it goes forward. By early September, the boards of both credit unions will make separate recommendations to their respective member-owner voting bodies. If approved by members, the proposed effective date is December 31, with full integration to follow in 2014.
“We’re two credit unions who have been co-operative neighbours and successful in our respective markets,” says Dennis Hogan, United Communities board chairman. “We’re starting on the same page, we share the same values. This harmony will help us reach our objectives that much faster.”
The new, merged credit union will operate 27 branches, employ 556 staff in 21 communities, and serve over 95,000 member-owners who hold $3 billion in AUA.
The new credit union’s head office will be in London. There will be a regional office in Essex, as well as some specialty positions in other locations.
“It’s a perfect fit,” says Jim Lynn, United Communities CEO. “There are no overlaps, meaning this merger can happen with room for everyone. When our Boards, Steve and I first sat down, it became apparent very quickly that United Communities and Libro shared a common destiny.”
Libro’s Bolton will serve as president and CEO of the new credit union while United Communities CEO Jim Lynn will stay close by to ensure a smooth transition.
“It was originally my intent to retire in 2012; however, with the current economic climate and as the potential for merger developed, I postponed my plans,” says Lyn.
“We’ll select a name that honours both credit unions while positioning it for a strong future,” concludes Bolton.