Stillorgan Credit Union to pursue merger with neighbour

Stillorgan Credit Union in south Dublin has received the green light from members to pursue a possible merger with a "smaller neighbouring" credit union in 2016 without divulging the identity of the other institution.

Members approved the move at the annual general meeting of the Stillorgan Credit Union on December 9th.

In its annual report, sent to members in advance of the agm, the directors said it had been approached by the smaller credit union “to explore the possibility” of a transfer of engagement.

‘Fully satisfied’

The board was “fully satisfied” that it was in the best interests of Stillorgan Credit Union and our members to undertake the transfer of engagement, the directors added.

They noted that within the broader credit union movement, 36 mergers had been completed in the past two years as institutions seek financial security for members.

The directors said this merger presented a “growth opportunity” for Stillorgan that would “help ensure the long-term viability of the credit union” while giving members access to a second branch office. They said there would be “minimal” impact on members day-to-day interactions with the credit union with “many of the changes impacting on back office operations only”.

Approval

The merger would be subject to regulatory approval and would be expected to take place in 2016 if approved.

No comment on the merger was available from the Stillorgan Credit Union while the Central Bank declined to comment on the proposed combination.

Stillorgan’s annual report showed that total income increased by 2 per cent to just under €1.5 million for the year ended September 30th 2015 while total expenditure reduced by 10 per cent to €754,633.

There was an excess of income over expenditure of €719,250 with €151,409 paid in dividends. This was described as a “very satisfactory result” given the low current interest rate environment.

Bad debt written off during the year was €149,537, while the bad debt provision was €2.1 million. Some €172,598 in bad debts was recovered during the period.