FAQ on proposed merger with St Patrick's Credit Union

1. Who are St Patrick’s Credit Union?
St. Patricks is a community credit union with a common bond of the parish of St Patricks Church, Lower Glanmire Road in Cork covering from St Patricks Hill to St Lukes.

 2. Why are you merging?
In the case of St Gabriel's staff reductions at both eircom & an Post in recent years means the opportunity for recruiting new members is greatly reduced. The existing membership is getting older so there is a need to expand our scope for recruiting new members in the interest for the long term development of the credit union. Our neighbouring credit union St Patricks has a younger membership and a community common bond that has potential for growth.

3. Is St Gabriel’s/St Patrick’s being taken over?
Technically it is called a Transfer of Engagement whereby the assets/members of St. Patricks CU will be transferred into St Gabriels. Both credit unions are treating this as a merger. The name St Patricks will cease to exist and it is possible that a new name for the new entity will be agreed at a later stage.

4. Is the St Gabriel's in trouble?
No, St Gabriels is financial strong. Our strength is illustrated by the following figures:

1) Liquidity in St Gabriel’s is currently at approx 40% of assets, which is double the required minimum of 20%.
2) St Gabriel’s is well capitalised, our statutory reserve at 10.9% is well above the regulatory requirement of 10%
3) Our bad dept reserve is well ahead of our minimum requirements.
4) As was as our statutory reserves St Gabriel’s has an undistributed surplus of €417,573. This money is our “nest egg” for the future.
5) St Gabriel’s currently has no restrictions on the amount we can lend to our members.
(Of course each loan is judged on its own merits and on the member’s ability to repay the loan.)

5. Are you being forced to merge by the government/financial regulator?
No, this is completely voluntary between both credit unions. The Financial Regulator will have the final say as to whether the transfer will happen or not. They will have to be satisfied that the new credit union is viable and well organised as a financial entity into the future.

6. What will it cost us?
There will be costs associated with the proposed transfer. However, these costs to some extent will be covered by the Irish League of Credit Unions SPS Fund which exists to provide assistance in situations such as this.

7. Is it certain that this merger will happen?
No, both boards will have to seek the approval of the Regulator to proceed with the Transfer.

8. What happens if the merger does not go ahead?
Both credit unions will continue to operate as normal.

9. Do we get to vote on the merger?
The Transfer of Engagement is governed by the 1997 act and this allows the boards to make the decision. Each member of both CUs will be notified before the transfer goes ahead and member may object. For more information see question 24 below.

10. Is my money safe/secure?
Yes, see answer to question 4 above. The Financial Regulator will have to be satisfied that this merger is in the best interest s of both credit unions.  Also remember credit union savings up to €100,000 are automatically covered under the Government Guarantee.

11. Will I pay more or less interest on my loans?
For members of St Gabriels your current loan interest rates will remain the same. For member of St Patrick's their loans will transfer to the new entity at St Gabriel's standard loan rate.

12. Will I still be able to get loans from St Gabriel’s?
Yes, for member of St Gabrie'ls nothing will change as a result of this merger. The usual forms and rules will apply. Additional information such as payslips, P60’s and bank statements may be required to establish the members ability to repay.

13. Will this affect the dividend on my shares/savings?
Future dividends will depend on the performance of the new entity and is determined at year end. It is envisaged that the combined strength of the new entity should enable future dividends to be paid.

14. Will this affect services at St Gabriel’s?
No, services at St Gabriel's will not change. The current opening hours will remain unchanged.

15. Will I have to apply to join the new Credit Union?
No, you will automatically become a member of the new entity. For members of St Gabriel's your membership number will not change.
 
16. Will St Gabriel’s have to close their office?
No, the office of the combined credit union will be St Gabriel's current office and St Gabriel's office hours will not change. It is intended to close the premises of St Patricks and members will be able to do their normal business in the offices of St Gabriels around the corner on St Patricks Quay.

17. How will this affect the common bond?
The new common bond will now encompass the existing common bonds of both credit unions. This will consist parish of St Patricks Church (covering the Lower Glanmire Road, up to St Lukes and St Patricks Hill) and the employees (and their family) of both eircom, An Post and their subsidiary companies.

18. Will this affect how St Patrick’s/St Gabriel’s is run?
Once the process has been agreed a number of volunteers currently involved with St Patricks have agreed to remain involved with the new credit union and therefore positions will be made available on the board and a variety of committees to ensure that the members of St Patricks continue to be represented in St Gabriels. The staff member currently employed by St Patrick's will remain as a staff member of the new credit union.

19. Will my direct debits /payroll/ bank standing order be affected?
Initially you will maintain your current method of repayment. Payroll deductions will not change. For those paying through their bank there may be changes to the accounts but this will be phased in on a gradual basis when you will be provided with the necessary documentation as required.

20. Are any other mergers being considered?
If the right opportunity arose the board would consider it. Any proposed merger would have to be reviewed with what would be in the best interests of our members.

21. Is my LPLS/DBI insurance affected?
The level of insurance currently available to members of St Gabriels will not change i.e. loans cleared at time of death, savings are insured up to €12,700 and Death Benefit Insurance (DBI) is €3250 (Terms & Conditions apply). Members of St Patricks will be entitled to these limits also once the transfer has been completed.

22. Do I have to sign a new nomination form?
Any Nomination form currently on file within either St Gabriels or St Patricks will apply in the event of your death. It is in your own best interest to ensure that you have an up to date nomination form completed.

23. Do I need to provide any additional identification?
Members may be asked to provide up to date photo-id such as drivers licence, work id or passport when conducting transactions at the counter. This id will be copied and retained on file for future identification purposes.

24. If I do not agree with the merger what are my options

As part of the transfer process, we are obliged to place an advert in the National Press outlining the transfer and if anyone has any objections they can then write to the regulator within 30 days and specify the reasons for their objections and the regulator will then adjudicate.
If you wanted to move your account please bear in mind the following:
• If you were to transfer to another credit union you would need to be in the common bond of that credit union.
• Make sure you transfer your account. Don’t withdraw your savings without checking what insurances if any are built up on your account.