connectFirst Credit Union and Servus Credit Union Announce Intent to Merge

On March 3, 2023, the Board of Directors of Servus Credit Union and connectFirst announced an intent to merge the two organizations to benefit members, employees, and our Albertan communities, subject to satisfactory due diligence as well as member and regulatory approval.

The announcement was made following initial discussions that commenced in late 2022 between the two boards and subsequent signing of a Memorandum of Understanding which charts the course for continued evaluation of this opportunity for each organization's members. The evaluation would explore how a merger could leverage combined expertise to deliver economies of scale, with an objective to propel both organizations forward in the provision of world-class financial products, services and member experience. The new entity's relative size would see over $31 billion in assets under administration.

"We're excited at the potential of joining forces with Servus, which would create one of the leading credit unions in Canada," says Andrew Eberl, connectFirst's Board Chair. "For both organizations, our members are at the heart of everything we do, and this opportunity would enable us to deliver the elevated financial services members expect while also growing our collective reach and impact.

Servus' Board Chair, John Lamb, says, "In today's rapidly shifting financial landscape, scale matters. This opportunity would favourably position our organizations to respond to shifting competitive pressures, affording both the opportunity for further investment into things like digital innovation and preparation for open banking. This will ensure we can bring our collective, best-in-class member experiences to more people for years to come."

Ian Burns, President and CEO of Servus Credit Union, who the boards intend to appoint as leader of the joint entity says, "We're delighted by what we see as a clear opportunity to build on both organizations' strengths to deliver a leading member experience across the province. This is good news for Albertans, our members and our employees. This is an opportunity to ensure the power and principles of cooperative banking continue to benefit Alberta communities for generations to come."

"Our two credit unions have a shared mission in positively impacting the lives of our members and the communities in which we live," says Don Coulter, CEO of connectFirst. "We look forward to working together to create a stronger and more competitive financial institution that is driven by purpose and dedicated to creating lasting positive impacts for our local communities."

Both credit unions will now embark on independent due diligence assessments of the merger opportunity with further details and next steps to be addressed after completion. The intended merger is subject to regulatory approvals and a member vote.