REGINA - Three Saskatchewan-based credit unions have announced they are exploring a potential merger.
Conexus Credit Union, Cornerstone Credit Union, and Synergy Credit Union confirmed they are considering a merger in a news release issued Wednesday. According to that statement, the three credit unions are aiming to “create a stronger, more resilient province-wide credit union that evolves with the changing needs of its members and communities.”
The three Credit Unions are setting up a Joint Partnership Committee, comprising representatives from each credit union, to “explore synergies that will create tangible value and benefits for all three organizations.”
Conexus Credit Union is based in Regina and has 886 employees across 30 locations serving 141,000 members, including Moose Jaw and Prince Albert. It currently manages almost $10 billion in assets.
Cornerstone Credit Union is based in Yorkton and serves over 30,000 members in east central Saskatchewan, with 280 employees in 15 locations. Cornerstone has over $2.5 billion in assets.
Synergy Credit Union is based in Lloydminster and serves the west-central region with 12 branches, 238 employees, and 27,000 members. It has $2.5 billion in assets.
For all three credit unions, the first step in the process will be the “intent to explore” phase, which they say will involve “rigorous due diligence to develop a comprehensive business case” for the merger. That will last from now until March 2025.
A business case will then be developed and presented to the various Boards of Directors for approval by April 2025.
If the boards approve proceeding with a merger, this recommendation will then go to the members, with members of each credit union casting their votes to say yes or no. The benchmark is a steep one, with the province requiring a 75 per cent vote in favour by the members who choose to vote from each credit union.
The newly merged Credit Union would also need approval from the provincial regulator and there are federal issues they must work through as well, including clearance from the Competition Bureau to proceed. The indication is they plan is to work on an ongoing basis with those regulators so that they will be ready to create the new Credit Union.
The tentative date the new credit union will start operations is Jan. 1, 2026, but that is not yet confirmed.
“One of the things that we have is a byline called Together for a Thriving Saskatchewan," said Conexus Board Chair Ken Kosolofski, referring to the branding of the whole initiative.
“What that means is we're envisioning a new credit union that's more than just a regular financial institution. We can be a catalyst for Saskatchewan's prosperity. And so we're going to have unwavering commitment to our members, both current and future members. We're hoping to drive economic growth, empower and support our communities, and support the dreams of individuals, businesses, and farmers across this beautiful province of ours. So that's really kind of the high-level overview of why we have this byline and why we think it's good for the Saskatchewan credit union system.”
He said that there had been discussions over the last several months "making sure that we are together, (that) the Credit Unions align their values and strategic priorities both at a board level and a management level." He said as the dialogue continued between the three Credit Unions, the "alignment became evident, so we put together a concept paper for our Credit Unions and we introduced it to our memberships this morning."
A website has been set up at www.thrivingtogethersk.ca with information to members about the merger and potential benefits. Among those being touted are enhanced convenience across the province, an enhanced member experience, enhanced digital experience, competitive rates and fees, increased investment in communities, customized product and service offerings, and continued local decision-making. For employees, they are touting career growth and professional development opportunities, enhanced employee experience and ability to retrain and attract talent. They are also touting benefits for local communities.
Celina Philpot, CEO of Conexus Credit Union said what they are offering to their membership with the merger is "really covering the entire province."
"This actually will give us more of a branch network that goes to the east, to Cornerstone, and our partner in the West through Synergy Credit Union, so the new amalgamated Credit Union will offer an extended branch network throughout the province, the 57 branches strong. So even with that we are offering an enhanced service offering."
She also pointed to "greater capacity to invest in our communities through our shared resources and then have a customized and modern product offering to our members. And this will now allow us to differentiate and tailor offerings unique to our membership."
As for what the new Credit Union will require in terms of staffing, Philpot said it is "still very early days as to what that new entity is going to need as far as specialization. So we do recognize a larger credit union enables that specialization, so we're committed to supporting our employees to have opportunities with reskilling and retooling if that's what's necessary."
While there are plans to locate the head office out of Regina for registration purposes, Philpot said the new Credit Union will continue with a decentralized model so staff can continue to work out of existing locations where they are currently based.
The leadership of the other two Credit Unions planning to merge are expressing similar optimism about the whole initiative.
“We are incredibly excited to embark on this journey,” said Cornerstone Board Chair, Heidi Schofer, in a statement. “By uniting our strengths, we envision a credit union that not only meets but exceeds the expectations of our members, employees, and the communities we serve.”
“This potential merger represents a unique opportunity to drive innovation and sustainability,” said Synergy Board Chair, Neil Carruthers, in a news release. “Together, we will be better positioned to tackle competitive and regulatory pressures, ensuring a prosperous future for generations to come.”
“Our members are at the core of everything we do,” said Glenn Stang, CEO of Synergy Credit Union, in a statement. “Their voice will be instrumental in this process, and we are committed to maintaining transparent communication throughout.”
