HEPCOE Credit Union and Niagara Credit Union announced today that directors at both firms have signed an amalgamation agreement. The merger, if approved by regulators and credit union members, will create the largest credit union in Ontario.

The new credit union will launch next spring with over 40 branches across south- central Ontario including the Niagara region, Greater Toronto Area, and central Ontario.

It will employ over 180,000 members and hold over $3.5 billion in assets under administration after the merger is completed. There will be no branch closures as a result of this merger, the companies say.

“We are very pleased with the results of our due diligence process — they confirm what we hoped when we first announced our intention to pursue a merger. There is a strong, strategic fit between our credit unions. We firmly believe merging is the best way to keep building value for our members, employees, and communities,” Don Ariss, HEPCOE chairman, said in a release.

“It is not often that two strong, like-minded organizations are as compatible as HEPCOE Credit Union and Niagara Credit Union, and then have the opportunity to grow stronger together,” Erv Krause, chairman of the board, Niagara Credit Union, said.

The decision to pursue a merger was announced in July and due diligence was completed in late September. Based on their review of the due diligence findings, both boards of directors approved a legally binding amalgamation agreement.

The agreement will be submitted to the Financial Services Commission of Ontario in November. If approved, the merger agreement will be submitted to members of both credit unions for final approval in February. Once approved, the merger is expected to close in March 2005.

“Our members will be receiving more information in the coming weeks in the mail and on our web-sites. Both our credit unions will also be holding face-to-face meetings in local communities in January, 2005 and we invite all our members to attend,” said Ian McLeod, CEO of HEPCOE.

HEPCOE, established in 1942, has 25 branches throughout central Ontario and around the GTA. HEPCOE is Ontario’s third largest credit union with $1.5 billion in assets under administration.

Established in 1945, Niagara Credit Union is Ontario’s largest credit union with 100,000 members and over $2 billion in assets under administration. It operates 18 branches and four commercial banking centres in the Niagara Region and Guelph-Wellington County.