CRANBROOK, B.C.–A proposed merger among six credit unions in southeast British Columbia that would have created a $3-billion institution to be called The Elevatus Credit Union has been cancelled due to increasing costs.
The announcement was made in “Exploring Strength and Unity,” the online newsletter from the six boards of directors of the regional credit unions, citing what they called prohibitive increasing costs involved with the project, according to the Nelson Star.
The planned combination had been announced in the fall of 2017 when the six CUs across the Kootenay, Columbia Valley and Boundary regions said were exploring an amalgamation. The six credit unions included Columbia Valley, Creston & District, East Kootenay Community (Cranbrook), Grand Forks, Heritage (Castlegar), Kootenay Savings (Kimberley) and Nelson & District Credit Union.
“Very recently, we reached a point in the merger work where it became clear that the process itself was about to increase in cost to the extent that the merger did not make financial sense,” said Michael Strukoff, chair of the Elevatus Steering Committee, in a message to CU members. “While very disappointing, we chose to withdraw our merger application because it was no longer in the interests of our members.”
‘Lots of Moving Parts’
The merging of six credit unions at once had never been attempted in British Columbia before, according to Exploring Strength and Unity, the Nelson Star reported. “There are a lot of moving parts and thousands of members and employees to consider.
“The six individual credit unions will take a pause, focus on the immediate needs of members and employees, and leverage what they have gained from the Elevatus process,” the statement continued. “Where that leads each of them strategically will be up to the member-elected boards and leadership of each credit union.”