Mullingar CU set to be oneof largest after latest merger

Mullingar Credit Union is set to become one of the largest credit unions in the country early in the new year if members approve the proposal for the long-planned merger with Longford Credit Union at its AGM in The Greville Arms Hotel on Wednesday December 18.

If given the green light, the transfer of engagements from Longford Credit Union will swell the membership of Mullingar Credit Union by more than 13,000, and take the overall membership number to more than 55,000.

The merger is the standout item in Mullingar Credit Union’s annual report.

In the chairperson’s report Paul Isdell said that the merger is “an opportunity to further strengthen the credit union”.

“We will become one of the largest credit unions in the country, helping us to provide all members with access to a broad range of financial services, while keeping the credit union’s ethos and noted services,” he stated.

The year 2019 has been a momentous year for Mullingar Credit Union, from the rollout of current accounts and debit cards for members, to the significant upgrade of its online banking system.

Mr Isdell says that the expansion of services is “truly groundbreaking and it puts the credit union on a level playing field with the pillar banks for personal day to day banking”.

The two new loan products introduced by the credit union at end of 2018 – the Cultivate agricultural loan and the CU Home Mortgage Loan – have been “well received and are proving popular”, Mr Isdell says.

Overall, 2019 has been a “satisfactory” year for the credit union, its chairman states in the annual report documentation.

Membership of the organisation is now at almost 43,000, and more than 1,600 new accounts have been opened over the course of the financial year.

Members’ savings have increased by €29m and now stand at more than €230m, while the credit union’s overall assets are now at more than €276m. Loans worth almost €71m are outstanding to approximately 8,700 members, and €32m has been issued in new loans. More than 94% of all loan applications were approved.

The credit union generated a surplus of €2.3m in the last financial year, a reduction on last year’s figure of €2.4m. The board is proposing a dividend rate of 0.15% and an interest rebate of 7.5% on loan interest paid during the year.

Mullingar Credit Union also provided €117,000 in funding to community groups.

Mr Isdell says that this year’s surplus “is very much in line with the board’s expectations and reflects the continued ultra-low investment return environment and increasing operational costs”.

“In last year’s report I commented on the bleak outlook for investment returns and unfortunately there has been no improvement in the last 12 months. Our own investment advisers and most industry experts expect this low interest rate environment to persist for the foreseeable future. This is going to put significant pressure on the credit union’s surplus, leading to reduced dividend and interest rebates in the future years,” he said.