Merger Agreement Signed to Create Ontario's Largest Credit Union

TORONTO – An amalgamation agreement to create the largest credit union in Ontario has been signed by the respective Boards of Directors of HEPCOE Credit Union and Niagara Credit Union.

If approved by provincial regulators and credit union members, the new credit union will launch next spring with over 40 branches across south- central Ontario including the Niagara region, Greater Toronto Area, Barrie, Collingwood, Hanover, Owen Sound, and Guelph-Wellington County. The new credit union will have over 180,000 members and over $3.5 billion in assets under administration after the merger is completed. There will be no branch closures as a result of this merger.

“We are very pleased with the results of our due diligence process – they confirm what we hoped when we first announced our intention to pursue a merger. There is a strong, strategic fit between our credit unions. We firmly believe merging is the best way to keep building value for our members, employees, and communities,” Don Ariss, HEPCOE Credit Union Board Chairman, said.

“It is not often that two strong, like-minded organizations are as compatible as HEPCOE Credit Union and Niagara Credit Union, and then have the opportunity to grow stronger together,” Erv Krause, Chairman of the Board, Niagara Credit Union, said.

The decision by the boards is a major milestone in the creation of a phenomenal financial institution in Ontario, according to Sean Jackson, CEO of Niagara Credit Union. Jackson will become CEO of the new credit union if the merger is approved.

“This merger will ensure that our members and future generations have a trusted financial partner to fulfill their life goals,” Jackson said. “Our goal is to maintain all of the benefits our members enjoy from a local financial institution as we grow larger. Our vision is to create the number one financial institution in Ontario for outstanding member relationship service.”

The decision to pursue a merger was announced in July and due diligence was completed in late September. Based on their review of the due diligence findings, both Boards of Directors approved a legally binding amalgamation agreement. The agreement will be submitted to the Financial Services Commission of Ontario, which regulates credit unions in the province, in November. If approved, the merger agreement will be submitted to members of both credit unions for final approval in February. Once approved, the merger is expected to close in March 2005.

“Our members will be receiving more information in the coming weeks in the mail and on our web-sites. Both our credit unions will also be holding face-to-face meetings in local communities in January, 2005 and we invite all our members to attend. This merger is all about further improving the quality of service and advice we provide,” emphasized Ian McLeod, Chief Executive Officer, HEPCOE Credit Union.

“We appreciate our Boards’ vote of confidence in this merger and are looking forward to discussing our service commitments with our members and communities,” McLeod stated.

HEPCOE Credit Union, established in 1942, is a full service financial institution providing personal and commercial banking through 25 branches throughout central Ontario and around the GTA. HEPCOE is Ontario’s third largest credit union with $1.5 billion in assets under administration.

Established in 1945, Niagara Credit Union is Ontario’s largest credit union with 100,000 members and over $2 billion in assets under administration. Niagara Credit Union provides a full range of retail and commercial financial services through 18 branches and four commercial banking centres in the Niagara Region and Guelph-Wellington County.