Alberta CUs get Bank of Montreal employees, customers as part of sales package

CALGARY, Alberta, Canada - Alberta's credit union system just got larger. Credit Union Central Alberta, the trade association for the province's 78 credit unions which provide services to more than half a million members, completed the purchase on June 27 of three rural branches from the Bank of Montreal on behalf of three area credit unions. The agreement involves 11 staff and the accounts of about 5,000 bank customers who will, as a result of the deal, become credit union members. Earlier this year, Credit Union Central Alberta facilitated the purchase of 17 Bank of Montreal branches. Specifically, the Bow Island branch of Bank of Montreal is being purchased by Community CU in Medicine Hat; the Magrath branch is being acquired by St. Patrick's CU in Lethbridge. Southland CU, also in Lethbridge, is purchasing the bank branch in Raymond. All of the 17 branches purchased in February have already been integrated and are operating as credit union branches. As was the case in February, the staff of the three Bank of Montreal branches recently acquired will be offered employment with the credit union, said Jim Scopick, CEO, Credit Union Central Alberta. The number of rural credit union branches has been increasing since 1992, CUCA reports. They presently serve 115 rural communities in Alberta. In more than 36 rural communities, credit unions are the only full service financial institution. In addition, 60% of residents in Alberta's towns and villages have credit union memberships. About 43% of credit union business is based in rural Alberta. Credit unions provide over $500 million in credit to farm businesses in Alberta. In 1999, commercial and agricultural lending portfolios for Alberta credit unions increased by 12% from the previous year. Credit unions' agricultural loan portfolio has increased more than 80% over the past five years, averaging more than 15% per year. As of April 30: combined credit union assets in Alberta topped the $6 billion mark; net income before taxes and dividends was $27.3 million, up 10% from the previous year. Credit Union Central's assets as of year end 1999 were $858 million and its income before tax and dividends in 1999 was $8 million. -ekingoff@cutimes.com