Prospera Credit Union and Westminster Savings Credit Union propose marriage | General financial discussion | Discussion forum

Two B.C.-based credit unions, each with 16 credit union branches with relatively minimal geographic overlap, are proposing a marriage of equals. The two "wedding partners" in credit union matrimony include Prospera Credit Union and Westminster Savings Credit Union. A number of years ago, Prospera previously explored merger possibilities with North Shore Credit Union (now known as BlueShore Financial Credit Union), but ultimately, the boards of the respective credit unions called off the merger talks.

Now, the boards of both Prospera and Westminster Savings have recommended to the Financial Institutions Commission of British Columbia to combine. FICOM, as it is known, is reviewing the proposal and, if consent is granted, the merger proposal will be put to respective members of the two credit unions.

Each of the two credit unions was to hold 2019 AGMs this April or May, but in order to have director continuity during the merger proposal, they've each received FICOM's consent to delay their 2019 AGMs and director elections until the fall. Although they don't indicate it, I suspect that the two credit unions may be planning on coordinating the merger vote by members with the delayed 2019 AGM in the fall so that, ultimately, they can consummate the merger on or short after January 1st, 2020.

If consummated, the combined credit union would be the 4th largest B.C. credit union and the 6th largest credit union in Canada, both by combined assets ($6,971,130,700) as at September 30, 2018*, and would also be the 5th largest B.C. credit union by unique members (~120,000). Conexus Credit Union, of Saskatchewan, would fall from #6 to #7, and Steinbach Credit Union, of Manitoba, would drop from #7 to #8. Assuming no other mergers close during that timeframe, Alberta's Connect First Credit Union would fall off the top 10 list of Canadian credit unions, despite aggressive merger activity recently. Ontario's Alterna Savings & Credit Union Ltd., which also owns Alterna Bank, would fall from #9 to #10.

The two credit unions are unlikely, thankfully, to follow First West Credit Union's and Connect First Credit Union's now unwieldly strategy of having multiple regional brands and would, I think, likely adopt Prospera's branding as the continuing name as it is not delineated by geography in any way.

NB Prospera Credit Union previously started a direct-to-consumer banking venture in Ubiquity Bank of Canada, which you may or may not remember, that it ultimately sold its assets & liabilities to Bank West, which was then owned by Western Financial Group before being sold to Desjardins and rebranded as Zag Bank.

Cheers,
Doug

* "The Largest Credit Unions / Caisses Populaires, September 2018," Canadian Credit Union Association, https://www.ccua.com/~/media/CCUA/About/facts_and_figures/documents/Largest%20100%20Credit%20Unions/top100-2Q18_20-Sept-18.pdf