One of B.C.'s smallest credit unions is set to join one of the biggest.
Enderby and District Credit Union (EDCU) has entered into formal discussions to join Langley-headquartered First West Credit Union, B.C.'s third largest co-operative financial institution.
If approved by regulators and EDCU members, First West would gain an additional branch in the Okanagan, 4,300 members and $55 million in assets.
The move has the unanimous approval of EDCU's board and is expected to go to a member vote by the end of the year or in early 2013.
EDCU Ted Morrison would remain general manager. Enderby's credit union would also maintain its local brand and decision-making.
Morrison said the decision to enter into discussions with First West was partly because of the latter's size but also because of First West's model of allowing local credit unions to maintain their local decision-making power and brand while being part of a larger organization.
Launi Skinner, First West's CEO, said initial discussions began in late spring and have continued as management explores how First West can help EDCU grow.
Overall, she noted the merger would help EDCU become more competitive and gain access to new products, including First West's new simply free and unlimited chequing for business accounts.
"They'll be part of an organization with a balance sheet of close to $6 billion, so lending rates can be different, and their ability to do agricultural lending or any kind of commercial lending can be different when you have a balance sheet of this size."
If approved, the merger would be the latest in a resurgence of credit union consolidation in B.C. Cumberland and District Credit Union closed its merger with Powell River-based First Credit Union in September. The deal created a larger Vancouver Island-based credit union with $225 million in assets, 10,000 members and more than 140 employees. •
