November 3, 2008

Penticton, BC – The boards of Valley First Credit Union, BC-based Envision Financial and Alberta-based First Calgary Savings have voted to proceed with a merger between Valley First and Envision, with a continued partnership with First Calgary Savings.
The merger, which is subject to due diligence, regulatory approval and a member-owner vote, is the first step in building a new financial services organization that will ultimately provide its member-owners with inter-provincial connectivity and competitive financial services throughout Western Canada.
Unlike a traditional merger, in which one or both parties lose their individual identities, the three credit unions have created a new business model that will see each retain its local identity, community focus and local decision making while growing, diversifying economically and geographically and harnessing the strength of a larger asset base.
“We believe this merger and continued partnership offer our members and employees the best of all worlds,” says Valley First president and chief executive officer Harley Biddlecombe. “It offers us economies of scale, access to new markets and expanded career opportunities for our employees. At the same time, it preserves local identities, local decision making, community focus and close member contact.”
The newly merged credit union would manage more than $5.5 billion in assets under administration, rising to $7.8 billion with First Calgary Savings. The partnership would employ more than 1,625 people and serve 265,000 members from more than 52 branches, 29 insurance offices and 39 financial planning centres. With locations from Tsawwassen, B.C., to the north in Kitimat, B.C., and extending throughout the B.C. Interior and east to Calgary and southern Alberta, the new entity would be the largest inter-provincial credit union network in Canada.
“It’s vital that we remain relevant and offer our members the kinds of products and services they want and need in a market growing and changing as quickly as ours,” says Envision Financial president and chief executive officer Gord Huston. “Our members are our owners, and they have the right to expect a strong, healthy and financially sustainable organization now and into the future. This merger will make that a reality.”
Because credit unions are provincially regulated, First Calgary Savings will not be able to merge with Envision and Valley First until enabling legislation is in place. Nonetheless, First Calgary Savings will continue the Pathways partnership it began with Envision in 2004 with the new credit union. Under Pathways the two credit unions have developed a joint executive team, moved to a common banking system provider and shared corporate services, including technology, marketing, communications, corporate citizenship and human resources.
“We have made great strides working together under the Pathways project,” said First Calgary Savings president and chief executive officer Dave Gregory. “This initiative will advance and evolve that partnership for the benefit of our member-owners, employees and communities. It strategically positions us to be more effective in the future, to realize market opportunities and to achieve cross-border success when legislation allows a further merger.”
Valley First and Envision will now begin due diligence and submit their business case for merger to B.C.’s Financial Institutions Commission, the regulator that oversees credit unions. Following regulatory approval, both credit unions plan to hold a member vote in the early spring.
Valley First is one of British Columbia’s 10 largest credit unions with 15 branches in B.C.’s Similkameen, Okanagan and Thompson regions, $1.7 billion in assets under administration, 45,000 members and 450 employees. Valley First's subsidiaries include Valley First Insurance Services Ltd. and Valley First Financial Services Ltd. For more information, visit www.valleyfirst.com.
Recognized as one of Alberta’s 40 Top Employers for the second year, First Calgary Savings is the province's second-largest credit union with approximately $2.3 billion in assets under administration. In addition to its 16 retail banking branches, First Calgary Savings offers 12 one 2 one Financial Consulting™ centres, a Commercial Banking group, a Business Solutions Centre, a Dealer Services team, a locally-based contact centre and Just Financial. Since 1999, First Calgary Savings has been selected as one of Canada's 50 Best Managed Companies. First Calgary Savings’ more than 400 employees are proud to lead, learn and live in the communities they serve. For more information, visit www.1stcalgary.com.
Envision Financial is B.C.’s third-largest credit union with 21 branches and 20 insurance offices throughout the province. Envision has approximately $3.8 billion in assets under administration, more than 800 employees, 120,000 member-owners, and a number of subsidiary businesses including Envision Insurance Services, Envision Investment Services, CUDealerLink, Envision Leasing and inUnison Technology Services.