Cornerstone, Horizon and Plainsview Credit Unions are actively exploring an opportunity to partner together as a single credit union to drive benefits for members, employees and communities.
Cornerstone Credit Union serves Yorkton and area with branch in Tisdale, Archerwill, Rose Valley, Wynyard, Ituna, Kelliher, Theodore, Saltcoats and Yorkton.
Horizon Credit Union currently has locations at Melville, Grayson, Grenfell, Neudorf and Wolseley.
Plainsview Credit Union offers services to members from eleven physical branch location; Arcola, Kennedy, Kipling, Glenavon, Montmartre, Odessa, Vibank, Indian Head, Qu’Appelle, Govan and Emerald Park.
The three partner credit unions have engaged in discussions regarding the design and potential to form a new credit union. This is a significant undertaking that has been led by the Boards of Directors and Executive Management of each credit union. Bringing three mature credit unions together is a testament to the strength of the partners and their commitment toward collaboration and a shared vision for the future.
Doug Jones, CEO of Cornerstone Credit Union told Yorkton This Week Friday has been “very transparent” in its interest in expanding the access of its members over a larger area, adding while it is not the only factor to consider, there is generally “value in scale.”
The last time Cornerstone grew it added the then Tisdale Credit Union to the fold, a process that took place in 2007.
Jones said the decision to look at such a major coming together came about through general discussions as part of the broader credit union system in Saskatchewan.
“There’s a healthy dialogue within the credit union system all the time,” he said, adding through such discussions the three involved became aware that a strategic alignment that could benefit members.
“There is an appetite for doing this together.”
Jones said ultimately it comes down to wanting to grow to better serve members of the three existing credit unions.
Jones said the credit unions are looking forward to continue working together for the benefit of all stakeholders; members, employees and communities.
“Over time, the goal is for members to benefit through greater access and convenience, better advice, products and services along with improved technology,” stated the release. “Employees will benefit from having a broader network, expanded career opportunities and improved work experience through increased effectiveness and better technology. This opportunity will help ensure we can continue to support communities whether financially, as volunteers, or with effective ways to provide advice and service into the future. Each credit union today is striving to achieve these things, however together we are better.”
The shared future vision of the three credit union partners is a new credit union that is operationally competitive and differentiated through its commitment to member wellbeing via trusted advice and service as well as concern for community, detailed a release on the proposed merger. A new credit union will be more sustainable and better able to leverage opportunities and manage risks in the ever-changing financial services marketplace.
Jones said at this point it has not been decided what the merged credit union might be called.
“That’s to be determined,” he said, adding it could be one of the existing names, or a brand new name. “That will be part of the business case discussions.”
The new credit union would become the 4th largest credit union in Saskatchewan with approximately $1.72 billion in assets, serving over 35,000 members in 23 communities throughout east-central Saskatchewan and will employ approximately 285 people.
“The next step of the partnership is a due diligence process of building the formal business case for the combined credit union,” stated the release. “Once the business case is finalized, it will be reviewed for approval by the Board of Directors of each of the three credit unions. Once the business case is approved by the partner Boards, each credit union will begin a formal consultation process with their members, so they have the opportunity to learn more about the proposed new credit union.”
The final approval will be a vote by members of each participating credit union to approve a resolution as recommended by their Board of Directors. It is expected this process will continue throughout 2020. If approved, the new credit union would be launched in January 2021.
