Montague Credit Union is set to amalgamate with Provincial Credit Union in Charlottetown
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Provincial Credit Union is set to expand once again.
The Charlottetown-based credit union is in talks with Montague Credit Union to amalgamate.
This comes after Provincial Credit Union, formerly Metro Credit Union, completed a merger deal with Stella Maris Credit Union in North Rustico last October.
“Our primary focus is to continue building a strong financial institution for our members,” says Lou Douse, board chairman of Montague Credit Union.
“This amalgamation will enable us to expand our services and share resources and put us in a better market position by increasing local awareness, ultimately benefiting both credit unions.
Douse said they have been considering amalgamation for a few months now.
“We’re thinking of the future growth of the credit union and ways to share what we have. We see this as a way to better grow our solid foundation within the local economy.”
If approved, the new credit union will have four branches – Charlottetown, Stratford, North Rustico, and Montague serving a combined membership of more than 17,500 with total loans and deposits in excess of $470 million.
Provincial Credit Union currently employs 51 people. Montague Credit Union employs eight so the combined staff will totally nearly 60 people.
There will be no job losses as a result of the amalgamation, if approved, credit union officials say.
Corey Tremere, board chairman of Provincial Credit Union, said he is pleased with the potential benefits an amalgamation would bring to the credit unions and their members.
“An amalgamation with Montague Credit Union will increase our trading area, and result in new business possibilities for both operations,” said Tremere.
“We are very much looking forward to the opportunities and improved economies of scale that this amalgamation would facilitate.”
Credit Unions are member-owned organizations, and in order for the proposed amalgamation to move forward, it must be approved by the members of each credit union. Approval for the amalgamation will be brought to the general membership of each credit union at special meetings planning for the fall.
If approved, the amalgamation will go into effect Jan. 1, 2015.
Doug Bridges, a spokesman for Provincial Credit Union, says Islanders should expect more credit union amalgamations. However, no other talks are currently underway.
“Looking forward, there will be more amalgamations, I’m sure of that.”