Credit unions banking on merger
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Rochdale Credit Union and FirstOntario Credit Union are working toward merging their operations by the end of 2013.
“A memorandum of understanding has been signed by both credit unions,” said Kelly McGriffin, president and CEO of FirstOntario, about the proposal that was announced in a press release on August 12. “We are looking forward to this opportunity to expand our presence within the Oxford and Brant regions and welcome Rochdale's members to the FirstOntario family.”
The financial institutions' boards of directors have approved the transaction subject to finalizing due diligence activities and approval by Rochdale's membership in the fall.
The deal would see all Rochdale and FirstOntario branches remain open, operating under the FirstOntario Credit Union banner.
The organizations said no job cuts are planned as a result of the merger.
Managing funds of about $4 billion, the combined organization would serve approximately 100,000 members through 27 branch offices.
“Rochdale and FirstOntario have already been working together cooperatively for a number of years and it is through these interactions that we found a striking similarity in our cultures and approach to member service,” said Nigel Millington, CEO of Rochdale Credit Union. “As we continued to cooperate, we also identified a wide range of areas where combining our services would be a significant benefit to all members leading to formal discussions about a potential merger.”
Once the merger is complete, FirstOntario will be one of the largest credit unions in Ontario, Millington said.
“It'll be in the top three or four in the province,” he said.
Carey Smith, FirstOntario board chair, said both organizations have a people first culture and are focused on providing exceptional member experience.
“We take our social responsibility seriously and are dedicated to supporting organizations within our local communities,” Smith said. “Both credit unions see that combining our operations will afford our members an increased branch and bank machine network, access to more financial products and enhanced services.”
Founded in 1942, Rochdale Credit Union has about $190 million in funds under management and serves 6,500 members at branches in Woodstock, Ingersoll, Norwich and Brantford.
FirstOntario Credit Union manages more than $3.6 billion in funds and serves about 90,000 members at 23 branches in 13 communities in Hamilton, Halton, Niagara, Haldimand/Norfolk and Oxford.
“Both organizations share strong core values that focus on member and community service and will be strengthened by this combination,” said Jake Feyen, Rochdale board chair.