Carrick, Mohill and Annaduff Credit Unions agree to merge

The members of Carrick-on-Shannon, Mohill and Annaduff Credit Unions have agreed to merge into one new Credit Union to be known as Heartland Credit Union.

At the recent Annual General Meeting of Carrick-on-Shannon Credit Union held in the Bush Hotel on Wednesday, March 1, those present voted unanimously to accept a transfer of engagement of Mohill and Annaduff Credit Unions to Carrick Credit Union which was one of the final stages in the merger process.

The Chairman of Carrick-on-Shannon Credit Union Joe Mulvey addressed the meeting stating that work had been ongoing for some time to enable the merger and it was a process that had been approved by the Central Bank.

He said “The combination of the three Credit Unions provides an opportunity for the new enlarged Credit Union to reach more people through the efficient use of additional resources.

“The combined common bond of the enlarged Credit Union will have a larger footprint and strengthen our position as a regional Credit Union.

“Immediately the combined entity will have a stronger financial base in assets and in reserves and will have a better opportunity to improve our services and reach a wider potential membership.

“The combination of the three Credit Unions will create a larger, more cost-efficient operation which is better able to offer a greater range of services to its existing and new members.

“Member services will be provided at each location with core decision making and specialised support being provided centrally. The elimination of duplicate back-office support will translate into substantial cost savings, and also allow focussed allocation of staff resources to help achieve growth.  

“The current governance structure of the three Credit Unions is mature, effective and experienced. The combined Credit Union has experienced personnel that will make up the management team.

“Now that the membership of the three Credit Unions have approved the merger, our plans are to put all the final arrangements in place and have the merger take effect in early April.

“The combined Credit Union will have almost 11,000 members, almost €36m in assets, three branches and a loan book of almost €12.2m. The new Credit Union will be renamed to Heartland Credit Union and will continue with the existing offices of each becoming three branch offices of the new entity.

“Crucially to aid in growth for the new Heartland Credit Union, there are in excess of 20,000 people living in the combined common bond meaning there is considerable opportunity for growth.

“The Credit Union movement is now faced with unprecedented challenges.

“Today’s members need a broader range of accessible, low-cost financial services than they did in the past. Credit Unions also need to comply with a new regime of more intensive and effective regulatory oversight.

“These challenges require greater resources and greater scale efficiencies. This restructuring process provides our Credit Union with the opportunity to develop a more sustainable business model, and harness the growth potential that exists in the wider common bond.

“Merging the three Credit Unions creates an entity that will be in a better position to meet the challenges that face the movement now and into the future.

“The Boards of all three Credit Unions share a commitment to providing their communities with access to affordable, competitive services and ultimately aim to improve the lives of their members.”