MPP Says Credit Union Merger Brings Much Needed Competition to Banking Sector

VAUGHAN, ONTARIO--(Marketwired - April 7, 2014) - PACE Credit Union (PCU) and Alterna Savings, two of Ontario's leading community-cooperative banks have announced they are merging. They will operate 39 branches in diverse communities under both the PACE and Alterna Savings banners. It will employ 600 staff, and serve a growing membership of 140,000 who hold $4.1 billion in assets under administration. Rob Paterson of Alterna is Chief Executive Office and Larry Smith of PCU will be President.

"There will be no reduction in staff or branches; and we will offer increased services and a greater capacity to strengthen our brands and community spirit. Joining forces will make us even stronger," says PCU's Larry Smith.

Newmarket-Aurora MPP Frank Klees says, "This announcement is welcome news not only for credit union members who will benefit from the combined assets of both organizations, but also for the province. The retail and local business markets need more choices in terms of banking products. Many people don't realize the options available to them through credit unions – oftentimes traditional banks don't have the same flexibility that credit unions have."

Klees adds the newly formed credit union will open up necessary competition and says, "Credit unions are not an exclusive club for work groups and associations; they play an important role in the financial services sector. It's an important message for the public to know that credit unions offer viable banking options."

Alterna's Rob Paterson says, "This partnership benefits our members and our employees. Both of our credit unions have served our communities for many years; and our common focus and co-operative spirit have made this an easy and logical decision."

The Boards of Directors of PCU and Alterna Savings have signed a Letter of Intent to join together as one operating entity. The proposed transaction is still subject to a due diligence process, regulatory approval, and approval by the credit unions' respective memberships.

About PACE Credit Union

PACE Credit Union's Ontario roots trace back over 60 years including the membership of Farmunited Co-op, the first credit union incorporated under the new Credit Union Act of 1940. Headquartered in Vaughan, Ontario, PCU serves its 40,000 members holding over $800 million in assets under administration through 15 locations. To find out more about co-operative banking, visit www.pacecu.ca, follow @PACECU on Twitter, or find us on Facebook.

About Alterna Savings

As Canada's first co-operative financial institution outside Quebec founded in 1908, Alterna Savings and Credit Union Ltd. is a full-service, member-owned credit union. Alterna Savings serves over 100,000 members, and currently holds C$3.3 billion in assets under administration. From trustworthy financial advice to local investment and support, Alterna Savings offers a fresh alternative to the 'Big Banks'. Visit: www.alterna.ca, or follow @alternasavings on Twitter and Facebook.