History and background of merger discussions
Formal discussions between Beem and BlueShore Financial started in July 2024, with the Chief Executive Officers and Board Chairs of each credit union engaged. Through initial discussions, the credit unions determined that exploring a business combination would be an ideal course of action. Both parties recognized the inherent potential in combining BlueShore Financial and Beem, and in particular the combining of the credit unions’ scale and capital to elevate the provision of services to members and local communities.
Timelime
Boards of Directors of both credit unions begin merger discussions.
Memorandum of Understanding signed.
Due diligence and financial modelling are completed. Benefits are determined to outweigh the risks.
Both Boards approve the Application for Consent including the business case, due diligence and Asset Transfer Agreement.
Application for Consent submitted to BC Financial Services Authority (BCFSA).
The Proposed Merger receives consent from the Superintendent of Financial Institutions.
Why merge now?
With digital transformation and new competitors, credit unions of all sizes are facing some challenges. Add to that the excitement of open banking, payment modernization, and increasingly complex and costly regulatory requirements, and it’s clear that the financial services landscape is evolving rapidly.
The rapid pace of change impacts all financial institutions and makes it tougher to:
keep growing
the membership base
hire and retain
quality talent
update or replace outdated technology systems
handle the rising costs of compliance and risk management
develop competitive and sustainable pricing models
operate with narrower profit margins
Many credit unions have merged to gain the scale needed to stay competitive and strong, staying true to the co-operative spirit of working together for the benefit of all. Back in 1994, there were 978 credit unions in Canada. Today, there are just 192, with about 22 mergers happening each year.
Given the current challenges facing credit unions and the broader rationale for a merger, combining the businesses of BlueShore Financial and Beem presents an opportunity to unite two credit unions who share a desire to enhance service to our collective members, employees, and communities. This proposed merger is expected to increase financial resilience, enabling us to better adapt to changing economic conditions, emerging technologies, digital trends, and growing regulatory demands.
BlueShore Financial and Beem believe now is the right time to merge as, together, the two credit unions can achieve their best.
Alternatives considered
Each year, as part of strategic planning, both BlueShore Financial and Beem consider various options for long-term strength, stability and growth. These options include maintaining the status quo, collaboration, partnerships and joint ventures, federal continuance and other merger partners. After consideration of such alternatives, the two credit unions believe that the proposed merger between BlueShore Financial and Beem is the most desirable path forward.
For a brief description of each of the alternatives considered by the Boards of Directors, please refer to the Supplemental Information Package.