By KELLY LOUISEIZE
The amalgamation is complete.
Northern Credit Union members and the Financial Services Commission of Ontario has welcomed West Fort William Credit Union in Thunder Bay and Red Rock Credit Union into the fold.
“Just in shear size alone it brings us to $500 million in assets,” Al Suraci, president and CEO of Northern Credit Union, says.
“We are the largest regionally based credit union probably right across Ontario.”
The institution stretches from Ottawa to Thunder Bay now with 25 branches in rural communities and large urban centres in Northern Ontario.
Close to 250 staff serve an estimated 48,000 members.
Having an asset base of a half a billion dollars provides the flexibility to respond to market demand.
“If we are a smaller player sometimes it is very difficult to have the same rates some of the big financial institutions (FI) are offering down the street.”
But because they are growing, their market base pricing rates and service can be maintained or improved.
Like any financial institution, the Northern Credit Union will be using deposits to invest in quality loans, potentially to small business down the street.
“Our dollars will be staying right here in our region in our local communities.”
The whole vision is to have an alternative to the mass-market banks, which are based out of southern Ontario.
“We want to be the viable alternative right across this province,” Suraci says.
Taking the step into Thunder Bay brings the organization closer to its goal.
The company will continue to be a lending provider to small and medium sized business. West Fort William Credit Union did not have a commercial account manager, so effective immediately the company put out feelers for a qualified person.
Loans have increased this year with all branches out pacing last year’s numbers.
“Last year’s pace was almost a near record for us and we are already surpassing last year’s pace.”
He attributes this to a robust economy in areas where the credit union exists.
He also knows the foundation of providing personal service to members have some people transitioning from larger banks to credit unions. In 2004, the Bank of Montreal pulled out of two small Northern, rural communities offering little notice. Their nearest branch is now more than 100 kilometres away. Suraci believes he is witnessing some level of dissatisfaction with FIs and as a result members are moving over to credit unions.
“There are other options. We are about the community and will be staying in your community.
We saw a lot of new members as a result of (the closure).”
Northern Credit Union’s profits were over $2 million for 2004, the best year since opening in 1957. This year appears to be another banner year as numbers are exceeding expectations.
“For the first end of third quarter results we are ahead of plan. We are growing our business ahead of our forecasted pace.”
Sault Ste. Marie Credit Union may be providing current banking needs for the Gateway project as Philip Garforth, an investor in the project, has an account with a Toronto credit union.
In the future, Suraci hinted at improving service with new products- something the recently appointed senior manager of training and development will oversee as the company works toward their 2006 short-term goals.
