Servus Credit Union reports strong fiscal year performance following connectFirst merger

Servus Credit Union, formed through the merger with connectFirst Credit Union, has concluded its fiscal year with robust financial results, marking a pivotal milestone in its journey as one of Canada’s largest credit unions. The newly unified entity reported total assets of $29.3 billion and assets under management of $37.6 billion, showcasing financial strength and growth potential in the aftermath of its transformative merger.

Operating under the trade name Servus Credit Union, the institution now serves over 600,000 Albertans across more than 80 communities. With a network of more than 140 branches and comprehensive digital banking platforms, Servus has reinforced its commitment to delivering secure, accessible, and member-centric financial services. The merger has positioned Servus as a major financial player in Alberta’s credit union landscape, enhancing its ability to meet the diverse needs of individuals, families, and businesses.

How did the merger with connectFirst Credit Union impact Servus’s financial growth?

The merger, finalised on May 1, 2024, has been a defining factor in Servus Credit Union’s financial growth. This strategic consolidation created a more resilient and scalable financial institution capable of navigating Alberta’s dynamic economic landscape. By combining resources, expanding its member base, and increasing operational efficiencies, Servus has been able to deliver improved financial outcomes while maintaining its core values of member-focused service.

For the fiscal year ending October 31, 2024, Servus reported growth across key financial indicators. The credit union experienced an increase in both loans and deposits compared to the previous quarter, a reflection of strengthened member trust and the ability to meet diverse financial needs. These gains have solidified Servus’s reputation as a reliable financial institution committed to supporting economic growth within the communities it serves.

In addition to operational growth, Servus underwent accounting adjustments post-merger to align its assets and liabilities with fair market value. These adjustments, along with one-time items unrelated to ongoing operations, contributed an additional $21.7 million in income. However, due to the nature of merger accounting, post-merger results are not directly comparable to financial data from periods before May 1, 2024. Despite this accounting complexity, the credit union’s financial health remains strong, underscoring the merger’s long-term benefits.

What do Servus Credit Union’s financial results reveal about its stability?

Servus Credit Union’s fiscal year performance highlights its financial stability and operational efficiency. The institution’s assets under management reached $37.6 billion, with total assets standing at $29.3 billion. The growth in assets reflects a solid foundation built on strong lending practices, prudent financial management, and a focus on sustainable growth. Servus’s loan portfolio expanded to $24.9 billion, while deposits increased to $24.4 billion, indicating a healthy balance between lending activities and member savings.

Net interest income, a key measure of profitability, stood at $616 million, complemented by non-interest income of $212.7 million. These figures demonstrate Servus’s ability to diversify revenue streams beyond traditional lending activities, enhancing financial resilience. Retained earnings reached $1.2 billion, further strengthening the institution’s capital position and its capacity to invest in future growth. The provision for credit losses was $72.5 million, reflecting a cautious approach to risk management in an unpredictable economic environment. Operating expenses were recorded at $566.9 million, indicating disciplined cost management despite the complexities of the merger. Servus reported income before income taxes and patronage of $187.1 million, with normalised income, excluding one-time items, at $165.4 million. These results underscore the credit union’s operational strength and financial stability, positioning it for continued success in the years ahead.

What strategies are driving Servus Credit Union’s growth post-merger?

According to Ian Burns, President and Chief Executive Officer of Servus Credit Union, the organisation’s strong fiscal performance is the outcome of strategic planning, financial discipline, and a member-first approach. Servus’s growth strategy focuses on balancing fiscal responsibility with innovative service delivery to meet the evolving needs of its members. The merger has enabled Servus to leverage economies of scale, streamline operations, and expand its service offerings across Alberta.

A core driver of Servus’s growth has been its investment in digital transformation. In early 2024, the credit union launched an enhanced online and mobile banking experience, designed to offer faster, more intuitive financial solutions. This digital shift has improved member engagement, increased transaction volumes, and positioned Servus as a competitive force in Alberta’s financial services sector. The adoption of advanced technologies has not only enhanced operational efficiency but also provided members with greater convenience and flexibility in managing their finances.

Moreover, Servus’s cooperative model enables it to reinvest profits into member benefits. In December 2024, the credit union distributed $88 million in profits to members across Alberta, reinforcing its commitment to sharing financial success directly with those it serves. This profit-sharing initiative highlights Servus’s dedication to its members, setting it apart from traditional banks and strengthening member loyalty.

How is Servus Credit Union navigating economic challenges while supporting members?

Despite facing a financially unpredictable environment, Servus Credit Union has demonstrated resilience through sound risk management and community-focused initiatives. The credit union’s ability to adapt to economic fluctuations stems from its diversified services, strong capital base, and proactive member support strategies. Servus has prioritised financial stability by maintaining robust liquidity levels, managing credit risks effectively, and ensuring regulatory compliance across all operations.

“As we continue to stabilise and grow the combined credit union during these uncertain times, our priority remains clear — to support our members by listening to their unique needs and providing tailored financial solutions that benefit their families, businesses, and communities,” Burns added. This member-centric approach is evident in Servus’s commitment to financial literacy programs, community investments, and personalised banking solutions designed to meet the diverse needs of its growing membership base.

Servus’s approach to banking extends beyond traditional financial services. The institution places a strong emphasis on community involvement, financial education, and sustainable banking practices, reflecting its broader mission of fostering long-term financial well-being for all Albertans. This focus on community impact has helped Servus build lasting relationships with its members, driving loyalty and trust even during challenging economic conditions.

What’s next for Servus Credit Union?

Looking ahead, Servus Credit Union aims to build on its momentum by expanding its service offerings, enhancing technological capabilities, and deepening its community impact. The organisation’s growth strategy focuses on driving innovation, improving operational efficiency, and delivering exceptional member experiences. Servus plans to invest in advanced digital platforms, strengthen its risk management frameworks, and explore new opportunities for growth within Alberta and beyond.

With its strong financial foundation, Servus Credit Union is well-positioned to continue its growth trajectory while staying true to its cooperative values and member-first philosophy. The institution remains committed to creating value for its members, supporting local communities, and contributing to Alberta’s economic development. Servus’s vision for the future is rooted in its core principles of integrity, innovation, and inclusivity, ensuring that it remains a trusted financial partner for generations to come.