Bank of Montreal customers in central and northern Alberta have been taken over by another financial system.
Credit Union Central Alberta has announced it is buying 17 of the bank’s rural branches, which have assets totalling $426 million.
“The credit unions have been looking for a chance to expand,” said a spokesperson for the institution.
About 50 staff members are involved and all will be offered jobs with credit unions.
In some cases where a credit union and the bank coexist in the same community, a decision will be made later about buildings and offices, said Bas Wheeler, CUC executive vice-president.
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New members’ existing bank accounts, deposits and loans will be converted to equivalent credit union accounts, deposits and loans.
The takeovers involve Alliance, Castor, Daysland, Killam, Sedgewick, Two Hills, Viking, Whitecourt, Carbon, Morrin, Bentley, Delburne, Myrnam, Chauvin, Edgerton, Hughenden and Irma.
The Bank of Montreal also sold 17 rural Saskatchewan branches for $410 million.
The federal competition bureau must approve the deal.
Credit Union Central Alberta is owned by credit unions in the province and acts as a central banking facility and trade association for the system.
Combined assets in all credit unions topped the $5.6 billion mark as of Oct. 31, 1999. Net income before taxes was $52.4 million. Almost half of 1999 earnings were returned to members in the form of common share dividends and patronage
rebates.
The credit union system in Alberta has 500,000 members, 1,850 employees and 77 credit unions with 180 branches in 100 communities.
There are 93 rural branches of which 25 rural credit union branches are the only financial institution in the community.
