The merger of Spectra Credit Union with Saskatoon-based Affinity Credit Union has an added twist to it, but the premise and basis of the original proposal to amalgamate remains intact and unchanged.
The additional twist is the fact that Advantage Credit Union, with headquarters in Melfort, has also entered into a discussion and negotiation with Affinity to become part of the official affiliation.
The members of Advantage, Spectra and Affinity will vote on the proposed merger(s) in early April with Affinity's members casting their votes April 3 while Advantage will vote on April 4 and Spectra Credit Union members will have an opportunity to cast their votes during Spectra's annual general meeting, April 8. The vote will once again engage the membership through an online voting opportunity at five different branch locations that feature the audio-video links.
"There is no change to the plan we had with Affinity," said Spectra CEO Tim Schroh. He also emphasized the votes among members at each credit union are not tied to the others. In other words, if Advantage's members vote not to merge with Affinity, that will not make any difference to the proposal that is on the table between Affinity and Spectra.
Affinity, if it merges with Spectra, will gain a significant presence in southern Saskatchewan after establishing a very strong base in northern and central sectors of the years. Affinity claimed over $2.8 billion in managed assets in 2011, making it the 10th largest credit union in Canada. It also claimed 44 branch operations.
Spectra, headquartered in Estevan, is bringing over $720 million in managed assets to the table with 10 branch outlets and 20,000 members and a staff of over 100.
Advantage has 17 branch locations and about the same number of members but with a smaller managed asset base.
The merged entity, if approved, would give the new-look Affinity up to 76 branches in 68 communities across the province and approximately $4.5 billion in assets.
The system of governance employed by Affinity made an impact on Spectra's board of directors since it allows for autonomy at the regional level and a strong voice at the overall corporate table as well.
Schroh said the Spectra members and investment membership will be asked to make the decision in April and so far Spectra's administration has spent a lot of time in forging preliminary steps but has incurred very little expense to date, pending the vote.
"The biggest thing at this stage is communication and the selling of the concept," Schroh said.
"If both Advantage and Spectra decide to come together with Affinity, we're doing so through different paths. If we merge, the inclusion will give us all a bit more scale and scope. It's now a three-way merger proposal, but the votes are separate and no, there is no contemplation of an Advantage/Spectra merger if the vote goes against amalgamation with Affinity.
"It's been interesting and exciting," Schroh added. "We haven't hit any unforeseen problems. The board is on board."
Schroh said there has been a lot of rumoured speculation as to what will happen to the Spectra brand once a merger is completed, especially regarding the new Estevan events complex Spectra Place.
"Naming is a valuable medium for branding strategy, so you can imagine Affinity will see it as a worthwhile investment. So yes, there will be a new name that will affect all signage. As far as Spectra Place is concerned, we would do it in concert with the City of Estevan over time. The cost won't be exorbitant, but the rebranding will happen over a course of time."
Schroh said the proposed merger is also being handled appropriately at the administrative levels since he knows the CEOs of Affinity (Mark Lane) and Advantage (Jim Thiessen) very well, having worked with them at provincial levels on a number of occasions over two decades.
"I know them professionally and personally, so a pure partnership would not be a struggle for us."
