The boards of directors of Cumberland and District Credit Union and First Credit Union have signed a memorandum of agreement to merge. The proposition allows both credit unions to complete due diligence reviews to confirm their decisions. The merger would occur by way of an asset purchase with FCU being the acquiring Credit Union. The membership of CDCU has final approval for the merger at a membership meeting in the summer. If approved, the combined organization would have four credit union branches, six insurance branches, $223 million in assets, more than 10,000 members and upwards of 150 employees operating under the First Credit Union name.
Both credit unions have a long and proud history serving their communities and membership. The merger would enable both organizations to expand geographically, improve economies of scale and harness the financial strength of a larger asset base. It would also expand career opportunities for both CDCU and FCU employees.
“From the onset, we have been seeking a partner that would be able to provide a broader range of services than we have been able to offer," CDCU board chair Sandy McPherson said. "First Credit Union has over 30,000 insurance customers in the Comox Valley, making this an ideal opportunity for growth for Cumberland and District branch."
"There are many synergies that make this partnership a great fit including our similar banking systems and suppliers, proximity to our successful insurance operations, and much more," FCU board chair Gerry Wray said.
Once through the due diligence stage, the transfer of assets must receive regulatory and membership approval.