Northern Savings grows in the east

Northern Savings Credit Union has successfully completed merger proceedings with the Terrace District Credit Union.

The merger which will officially take place on July 1 adds close to 4,000 more members to the Northern Savings member rolls. The Daily had the full story recounted below.

CREDIT UNION MAKING INROADS INTO TERRACE
By Leanne Ritchie
The Daily News
Monday, June 19, 2006
Page One

Members of the Terrace and District Credit Union (TDCU) members have said ‘yes’ to a merger with Northern Savings Credit Union (NSCU).

Last Wednesday, 94 per cent of members at the Terrace credit union’s annual general meeting voted in favour of a merger with Northern Savings.

“I’m thrilled with our members’ decision to lead the credit union in this exciting new direction,” said Don Condon, Terrace board chair.

“This will provide our members with a wider range of services and allow them greater access to their account through a broad network of branches in Northwestern B. C. it will also create new opportunities for our staff.”

The TDCU has more than 3,800 members while the NSCU has 16,000 members.

“Merging with Terrace allows us to grow our presence in the Terrace area providing even greater services to our members,” said Mike Tarr, Northern Savings CEO.

As part of the merger transaction, Northern Savings will welcome two of the Terrace Directors onto its board to assist with the merger transition and to participate in guiding the consolidated credit union.

The merger will take legal effect on July 1, 2006.

Because the merger is in the form of an asset transfer agreement, on that date TDCU will cease to exist as a legal entity and Terrace’s members will become members of NSCU. While the credit unions have long-term plans to transform and grow the merged credit union, in the short-term, members will not experience a lot of significant changes to the way they conduct their day-to-day business.

During the coming weeks, Northern Savings and Terrace and District will work together to create a comfortable transition for members and employees. As both credit unions share the same banking system, Terrace members of both credit unions will immediately have access to their accounts at either branch after July 1, 2006.

“We’re excited to be embarking on this exciting journey with Northern,” said Jim Steele, one of the two directors who will move over to the Northern Board effective July 1. “By merging, we’re stronger than either credit union was independently. Together we’ll ensure that a local credit union option remains in this community as an alternative to the big banks.”

Ken Earl, Terrace’s acting manager, will be resigning at the end of June.

“Ken’s focus on member service and a positive work environment for our staff has been appreciated by all of us. We wish him all the best in his future endeavours,” said Condon.

In December of 2005, the Board of Directors of TDCU selected Northern Savings as their preferred merger partner.

Since that time, the credit unions have worked together to complete a due diligence review, a business case, and an asset transfer agreement. In addition, they have received the necessary regulatory approvals and hosted town hall meetings to gain member support.