Credit Unions Can Go Inter-provincial

Founded in 1947, with one office in Penticton, the Valley First Credit Union is a huge Okanagan success story. As we reach the halfway point in the year, and with more and more competition all the time, I asked President and CEO Harley Biddlecombe how it looks for the fifty seven year old company in 2004.

“We are having a great year. We are better in budget, in balance sheet entries, and in profitability. Growth is strong. The staff are excited. Business is good.”

You have two branches under construction, one in Kelowna and one in Penticton. Are they on schedule and when are they expected to open?

“The new Glenmore branch is targeted for the end of September, and the one in Peachtree Square will probably be the end of August. We have also done a major reconstruction in our Oliver branch, modernizing it and making it much larger.”

I keep reading about credit unions in B.C. merging. At one point last year it was in the news a great deal. How far are we going to see these changes?

“The interesting thing, John, is there is legislation that has gone through second reading in B.C. that will allow credit unions to branch inter-provincially. So you may see changes because if you can branch inter-provincially. Mergers probably can’t be too far behind. Where it all concludes at the end of the day, I have no idea. I think we will see some interesting combinations explored in the next little while. Valley First is not actively doing anything in this regard. I am aware there are some people who are talking to each other across the mountains.”

Have the credit unions given up on the project of forming a national bank?

“There was a concept that some work was done on to create a national cooperative bank and it didn’t ultimately come to fruition. A lot of the working papers and the rational is still out there. There are opportunities from the federal perspective for some sort of a national entity. In fact you may see more of that in the next sixty days.”

This looks like another strong year for Valley First?

“We are picking up business in all directions, getting so much more traffic out of our existing clients and members that we honestly can’t keep up.”

Is the mortgage business still holding up?

“It is wild. Last month we did 197 residential mortgages.”

Will we see any further growth for the Valley First organization outside the Okanagan?

“I would think only if it makes a lot of sense. We are in Kamloops and we do look at that as a future growth area.”

The Valley First Credit Union has 14 branches, soon to be fifteen in ten cities.