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Jamaica’s largest credit union by membership, COK Sodality, is being merging with Community and Workers of Jamaica Co-operative Credit Union, C&WJCCU, but the deal still requires membership approval.
The transaction will result in a transfer of engagements, that is, all the assets and liabilities and business of COK will be taken over by C&WJ. In all likelihood, the name COK – formerly known as City of Kingston prior to its tie-up with Sodality – will disappear as a credit union.
Since 2010, C&WJ has engaged in at least seven mergers, including with Westmoreland CU, St Elizabeth CU, Clarendon CU, D&G Employees CU, Marine & Allied CU, NWC Employees CU and ICD & Associates CU.
C&WJCCU CEO Joyce West-Johnson was not available for comment on the current transaction.
The merger agreement between the credit unions was signed on October 15, at the offices of the Jamaica Co-operative Credit Union League.
Next, members of COK Sodality Co-operative Credit Union Limited will vote on whether to approve the merger at a special meeting scheduled for The Summit in New Kingston on November 9.
It is expected that the members of C&WJCCU will cast similar votes one week later.
More than a year ago, COK Sodality’s management signalled their intention at the credit union’s June 2023 annual general meeting to scout out a suitable partner, according to signals from CEO Deryke Smith during discussions with the Financial Gleaner back in September, when news of a pending mega-merger started filtering out.
Mergers have become a standard fare in the credit union sector, as the community banks seek to strengthen the capital structures and scale their businesses amid the still- ongoing transition from self-monitoring, via the Jamaica Co-operative Credit Union League, to regulation by the central bank.
The most recently approved transaction was that of Gateway and EduCom, which are in the process of amalgamating by early 2025. The merged entity will operate as Infinity Co-operative Credit Union Limited.
The Infinity and COK-C&WJCCU transactions will shrink the sector to 24 credit unions.
Currently, the 26 operators manage loan portfolios valued at $126.4 billion, assets of $182.7 billion and savings of $144.9 billion on behalf of a membership base of 1,042,785.
As of June 2024, C&WJCCU had $26.01 billion in total assets, up from $24.52 billion in 2023. At year ending December 2023, its surplus was $219.98 million, down from $299.69 million in 2022. The Kingston-based credit union has 19 branches spanning most parishes, the exceptions being St Thomas, Portland, St Catherine and Trelawny. The highest concentration C&WJ branches are in Kingston, five; Clarendon, four; St Elizabeth, four; and Westmoreland, three.
COK Sodality has five branches, two in Kingston and one each in Portmore, Mandeville and Montego Bay. The most recent account seen by the Financial Gleaner shows that COK had nearly $12 billion of assets at year ending December 2021. It recorded a surplus of $6.54 million, down from $98 million in 2020.
At the special meeting set for November 9, members of COK will also be asked to review the credit union’s 2023 accounts.
In terms of membership, COK Sodality is well ahead of others at 251,000. C&WJCCU sits at number three, with 150,000 members, having been overtaken by the new Infinitiy, with 174,000 members.
The merger of COK and C&WJCCU, if approved by their memberships, would make for the largest credit union ever in Jamaican history, with combined assets of about $38 billion and membership of around 401,000.
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