Transcript Document
WELCOME Saverio Cocozzoli Board Chair Objectives • To provide members with information on the partnership discussions between Lambton Financial and Mainstreet Credit Unions • To discuss the potential benefits of a combined Credit Union • To take your questions and receive your feedback AMALGAMATION OVERVIEW Bob Ferris - CEO Amalgamation The Boards of Directors of Lambton Financial Credit Union and Mainstreet Credit Union have entered in to an agreement to amalgamate their Credit Unions as of May 31st, 2014. Guiding Principles • Merger must create tangible value and benefit to our members • Staff will be our champions and must see the benefits for the members, the Credit Union and themselves • We will retain our skilled and valued staff • Build a future Credit Union based on mutual gains –creation not a negotiation Strategic Challenges • Local and global economic challenges • Economies of scale – cost of investing in new products and services • Financial margin • Increasing regulatory requirements • Having enough resources to deliver on our promises • New membership • More competition in the market place Ontario Credit Union System In 2008, there were 164 Credit Unions In 2013, there were 105 Credit Unions 5 have been announced in 2014 • Lambton Financial is currently the 29th largest • The new Mainstreet will be the 15th largest Credit Union in Ontario Rationale • The merger will create new economies of scale that will drive enhanced profitability and the ability to invest in expanded services that all credit unions require such as data management, banking systems, enhanced products and services, networks, and compliance oversight. • This was part of our original vision • Aligns with our current Strategic Plan Mainstreet Credit Union • 8 branches – In Chatham and Strathroy area • 80 employees • $330 million in assets • $110 million in Commercial Lending Portfolio • $22.5 million in Mutual Fund Portfolio • Strength is in borrowing, but they need liquidity • Younger demographic than us Comparison Branches Governance • 6 Board Members from each Credit Union • Lambton Financial current Audit Committee Chair Pat O’Malley will be the new Mainstreet Board Chair • 3 committees: Audit, Governance and Risk and Human Resources • Governance Review within 3 years Leadership Janet Grantham President and Chief Executive Officer Bob Ferris Executive Vice President Strategy and Operations Shawn Bustin Executive Vice President Sales and Member Service Benefits to Members • Enhanced product and service offerings • Access to more branches (13 versus 5) • Better able to: • Respond to an ever changing technological environment • Manage the risks that we face in an increasingly competitive and complex marketplace • Provide enhanced levels of specialized expertise by reallocating resources • Provide greater returns to members and communities New Mainstreet Projections Benefits to Staff • No jobs will be lost; no branch closures • Increased opportunities for ambitious employees (140 versus 60) • Very little change at the Senior Management level • Stability in organization (department sizes) • Greater support for staff • Performance tools (i.e. Intranet) Vision The new Credit Union will: • Have strong relationships with our members • Retain a strong local presence in each of our communities • Be nimble and responsive to local needs • Attract and retain the best employees The Vote April 29th 7:30pm Lambton Inn Sarnia www.cupartnership.ca QUESTIONS THANK YOU