The Votes Are In.
Members Vote Stronger Together, Better Value for All.

Members of Eagle River and Leading Edge Credit Unions vote to merge.

Members have spoken and we couldn’t be more pleased with the result. Thank you to everyone who took the time to vote. We look forward to a bright future and serving you under the banner of our combined credit union.

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What to Expect

Overview

Eagle River Credit Union and Leading Edge Credit Union are proposing to merge to create a single new credit union to serve our members across Newfoundland and Labrador. Discover how we are better together and we’ll create value for all.

Together we can achieve so much. We are similar in size in terms of assets and members. Most importantly, we are strongly aligned with shared values, community roots and purpose-driven cultures.

Our vision – Better Together. Value for All. – reflects our co-operative values and commitment to ensuring our members, staff, and the communities we serve are at the core of every decision we make.

A merger between our credit unions helps to ensure locally owned banking services and solutions remain a competitive and accessible choice for the communities we serve in Newfoundland and Labrador for years to come.

Statistics

Merged Credit Union

Members

17,000

Assets

$320 million

Employees

80+

Branches

11

What to Expect

Benefits

More value to our members, communities, and employees.

  • Access to multiple banking options so you can bank when, where, and how you want.
  • Increased investments in digital banking services to bring more choice and convenience to all members.
  • Greater access to specialized financial expertise.
  • More career opportunities for staff.

Local and community-focused

  • Locally based banking and personalized service from staff you know.
  • Investing even more in areas that are important to you.
  • A workforce model that will bring you the expertise you need.
  • Local decision-making in the best interests of our collective membership and the communities we serve.

Continued growth and sustainability

  • More resources to invest in innovative products and valued services.
  • Increased ability to grow membership.
  • Improved financial position enables resilience and opportunity to invest in a stronger future for all.

Our Locations

Our Combined Member Network

We are committed to maintaining our combined network of 11 locations. Members will continue to benefit from locally based banking and personalized service from staff they know.

The Timeline

Important Dates

March 2019

The boards of Eagle River Credit Union and Leading Edge Credit Union began discussing the potential for a merger.

March 2020

The boards signed a Memorandum of Understanding (MOU) outlining their agreement on the amalgamation process.

July 2020

Amalgamation planning began with the boards and executives of both credit unions, including creating the business case.

March 2021

  • The business case was presented to the boards of both credit unions for voting.
  • Both boards unanimously voted in favour of recommending the amalgamation to members.

May 2021

  • Eagle River and Leading Edge Credit Unions announce the proposed amalgamation to members at their respective AGMs.

June 2021

  • June 14: Special Meeting of Members
  • June 14-18: Members Vote on Amalgamation

January 2022

If approved, the new credit union will take effect January 1, 2022.

Merger Business Plan

Amalgamation Plan Highlights

The Board of Directors at Eagle River Credit Union and Leading Edge Credit Union have carefully considered the merger and approached the work as full partners with equal say in how the merger will be carried out. Both boards were unanimous in recommending this merger based on the strength of the business case and opportunities a single united credit union can enable to sustain and grow their business for generations to come.

Overview

  • The proposed merger helps build a strong and sustainable credit union presence for the communities served by Eagle River and Leading Edge. A key driver is to ensure there is good access to local community-based banking options for members served today, and for members served tomorrow.
  • To proceed, members from both credit unions must vote in favour of the merger.
  • The new credit union will be guided by a single board and have a single strategic plan to guide the organization. The inaugural board will include 12 directors with equal representation from both partners – six each from Eagle River and Leading Edge.

Business Goals

  • The two partner credit unions are strongly aligned, with shared values, community roots and purpose-driven cultures. Working as one entity, they can develop a stronger business model that enables more opportunities to invest in their communities and services that add value to all members and employees.
  • The proposed merger has a positive influence on revenue growth, operational efficiency, sustainability and member equity.

Revenue Growth

The combined operating capacity of a new merged entity will enable new opportunities to serve members in ways that are not achievable by each credit union on their own. To harness opportunities for revenue growth, the new credit union will focus on developing advice-based service culture, using data insights to drive personalized member experiences and digital solutions and enabling a more competitive product offering. Further through strategic alignment and partnerships, the merged entity can further develop business lines like wealth management, insurance, commercial and personal lending.

Operational Efficiency, Sustainability and Member Equity

The merger enables a more efficient use of the balance sheet and elimination of some duplication in costs. These savings can be reinvested back to create greater value for members over the next three to five years.

  • Surplus increases by $660K by 2023 and $869K by 2025
  • Return on Assets increases from 0.39% to 0.43% of total weighted assets between 2023 and 2025 (a 29 basis point and 25 basis point increase respectively when compared to the no merge scenario)
  • Efficiency improves dropping to 82.4% by 2025 (versus 93.5% under a no merge scenario)
  • Member Equity improves to 6.45% by 2025 (versus 6.05% under a no merge scenario)

 Following are examples of how increases in annual surplus will be reinvested in the new credit union to create member value:

  • Enhance training and career growth opportunities for employees
  • Increased investments in digital banking services to bring more choice and convenience to all members.
  • Invest in communities: the new credit union will have more opportunities to invest in regional partnerships and initiatives that make our communities stronger for everyone

Operations

  • A process for determining the name of the merged credit union will be developed following the vote, should members vote in favour of the merger.
  • Work on the process to select a CEO for the merged credit union will begin following the vote, should members vote in favour of the merger. At that time, we may engage a third party to help with that process.
  • In recognition of the vast geographic area the new credit union will cover and its importance to local communities, we will adopt a decentralized head office structure, meaning many jobs can be done from any location.

Member Service

  • The new credit union will be committed to maintaining its combined network of 11 locations and strengthening digital banking services to bring more choice and convenience to all members.

Employees

  • Employees can continue to work in their home communities and will not be asked to relocate to pursue opportunities within the new credit union as a result of the merger.
  • Staffing levels will be maintained. As part of the normal course of business, we expect some reductions over the next three years through retirements and attrition.

Community

  • Working together, the new credit union is committed to living its co-operative values and growing local communities.
  • The new credit union will remain committed to ensuring members continue to benefit from personalized service from staff they know and locally based banking.
  • The new credit union will have a Cooperative Social Responsibility Policy and framework that clearly identifies the pillars or purpose statements which will integrate social, environmental, and economic concerns into its values, culture, decision making, strategy and operations. This framework will guide the investment and allocation of resources for the CSR initiatives.

Due Diligence

  • The Executive Management at both credit unions completed due diligence reviews of each other’s operations and concluded there were no significant risks or concerns. Areas that were included as part of this review include earnings, liquidity, capital, credit, human resources, risk management, regulatory and information technology.

Frequently Asked Questions

Q&As

Why is Eagle River Credit Union and Leading Edge Credit Union considering a merger?

The competitive demands of the financial services industry are changing quickly, and it is becoming increasingly necessary for credit unions to find new ways to collaborate and consolidate their efforts. This merger is about being better, stronger, and providing even more value for members, employees, and our communities.

  • We can offer members more competitive products and services. In other words, members will keep the products and services they have today and gain more.
  • You will continue to benefit from personalized service from staff you know, and locally based banking.
  • We remain committed to supporting our communities and doing more as we grow.
  • A merger positions us well for future growth and sustainability.

What does this mean for members?

We see only positive benefits for members. Together, we will be able to:

  • Meet the changing needs and expectations of our members so you can bank when, where, and how you want.
  • Continue to invest in competitive products and services to attract new members, retain current members and meet more of your banking needs.

Will we lose any services as a result of the merger?

No, quite the opposite. You will continue to receive the same local, personalized services you do today. As we grow together, new competitive products and services will be offered.

Will this result in branches closing?

We are committed to maintaining our combined network of 11 locations across Newfoundland and Labrador, which will enable greater access to financial services and expertise for our members across the region.

Does this mean fees will increase?

The merger will ensure the credit union can offer members the best value going forward, providing competitive rates, products, and services in a sustainable manner.

Will we see any changes to rebates or dividends?

The board of the new credit union will determine how any surplus will be reinvested to best benefit our members. That’s the same approach our credit unions take now. That could include rebates, capital investments, or further support of community projects and initiatives that are important to you. 

Will my member number change as a result of this merger?

To limit disruption to members, banking information will remain the same for the present.
Members will continue to use their current bank cards, online banking logins and mobile apps.

Over time, we expect to integrate our banking systems and operations so we can best serve all members from any location.

Where will the head office be?

In recognition of the vast geographic area the new credit union will cover and its importance to local communities, we will adopt a decentralized head office structure, meaning many jobs can be done from any location.

Will the new credit union continue to support my community and the causes we care about?

Yes. We are committed to helping build strong, successful communities; together we can invest even more in areas that are important to members.

Who will be the CEO of the new credit union?

Work on the process to select a CEO for the merged credit union will begin following the vote, should you vote in favour of the merger. At that time, we may engage a third party to help with that process.

What will the new name of the credit union be?

A process for determining the name of the merged credit union will be developed following the vote, should members vote in favour of the merger.

What happens if we vote no?

The business case presents compelling evidence that a merger is the right decision for our credit union. We hope you see the benefits and opportunities as positively as we do; however, you have the final say. If you vote not to merge, we will continue to look for opportunities to gain efficiencies and grow our business while ensuring our long-term sustainability.

What are the next steps?

The future of your credit union is in your hands – your vote counts! The co-operative principle of democratic member control means the final decision is up to our members. As a member and an owner, it is your responsibility to vote and help determine the future of your credit union.

To ensure your voice is heard, it is important that you participate in our Special Membership Meeting on June 14th at 6 p.m. and vote on the proposed merger. Voting will begin immediately after the meeting until June 18 at 3 p.m. online via each credit union’s website and in branch. Details on the voting process will be shared with members prior to this meeting.

How many votes need to be in favour of a merger for it to go forward?

For the merger to proceed, two thirds (2/3) of the votes cast must be in favour.

When will the merger take place?

If approved, the merger will become effective on January 1, 2022.

Will employees lose their jobs?

No, staffing levels will be maintained. As part of the normal course of business, we expect some reductions over the next three years through retirements and attrition.

Why do we need to be bigger, we’re not a bank?

This merger is about being stronger. Our credit union and co-operative values of honesty and integrity guide how we serve members, and the decisions we make. As a stronger, and yes larger, combined credit union, we will be able to offer more benefits to members, employees and the communities we serve. Having more members and more resources will help ensure we are here to serve members for years to come.

Is the proposed merger the result of the negative impacts of the COVID-19 pandemic?

No. Over the past few years, we have been considering various ways to increase our operational efficiency, improve sustainability, enhance service to members and increase our support to the communities we serve. A merger will better position us to achieve those goals.

Contact

Get In Touch

Want to talk to us directly? Please send us a brief message and one of our team members will be in touch.

Member Voting

Voting Details

MEMBER VOTING DETAILS

Eagle River Credit Union and Leading Edge Credit Union are proposing a merger. This merger is about creating sustainability and value for members, employees and our communities.

ONE MEMBER. ONE VOTE.

As a member you have a say in determining the future of your credit union. We encourage you to view the plan details and supporting documents to ensure you have the information you need to make your decision.

Notice of Special Meeting of Members →

Special Resolution →

• New Credit Union Draft Amalgamation Agreement →

Schedule A – Proposed Charter Bylaws →

Schedule B – The Amalgamation Plan →

WHO CAN VOTE?

  • All members of the credit union, in good standing, age 19 or older
  • Eligible members are entitled to one vote only. No member can vote more than once.
  • Where membership is held jointly by 2 or more persons, the membership is entitled to only one vote.
  • A business, corporation or organization may vote through an appointed representative, if required, and if they have not already voted as an individual member.

HOW YOU VOTE?

  • During the voting period, members will be able to vote online using our secure voting platform. A link to the voting platform will also be available on our website, shared on social media and emailed (for those whom we have valid email addresses).
  • Members eligible to vote can login to access the voting platform using their membership info, including their member number (as used to access online banking). If you do not know your member number, call your branch.
  • Members will also be able to access the voting platform by visiting their branch during normal business hours. A voting station will be available to support the voting process.

VOTING PERIOD

June 14 to June 18: Voting opens on June 14 at 7:00PM following the Special Meeting of Members and closes at 3:00PM NDT on June 18.

MEMBER VOTING DETAILS

Leading Edge Credit Union and Eagle River Credit Union are proposing a merger. This merger is about creating sustainability and value for members, employees and our communities.

ONE MEMBER. ONE VOTE.

As a member you have a say in determining the future of your credit union. We encourage you to view the plan details and supporting documents to ensure you have the information you need to make your decision.

• Notice of Special Meeting of Members →

• Special Resolution →

• New Credit Union Draft Amalgamation Agreement →

• Schedule B – Proposed Charter Bylaws →

• Schedule B – The Amalgamation Plan →

WHO CAN VOTE?

  • All members of the credit union, in good standing, age 19 or older
  • Eligible members are entitled to one vote only. No member can vote more than once.
  • Where membership is held jointly by 2 or more persons, the membership is entitled to only one vote.
  • A business, corporation or organization may vote through an appointed representative, if required, and if they have not already voted as an individual member.

HOW YOU VOTE?

  • During the voting period, members will be able to vote online using our secure voting platform. A link to the voting platform will also be available on our website, shared on social media and emailed (for those whom we have valid email addresses).
  • Members eligible to vote can login to access the voting platform using their membership info, including their member number (as used to access online banking). If you do not know your member number, call your branch.
  • Members will also be able to access the voting platform by visiting their branch during normal business hours. A voting station will be available to support the voting process.

VOTING PERIOD

June 14 to June 18: Voting opens on June 14 at 7:00PM following the Special Meeting of Members and closes at 3:00PM NDT on June 18.