From Churches Co-operative to an $8.95 Billion Credit Union: First Heritage Plans a Merger With St Thomas

• First Heritage was formed in 2012 from Churches and GSB credit unions
• It had assets of $8.95 billion and a $6.7 billion loan portfolio
• It planned a merger with the 20,000-member St Thomas credit union
• Both managers declined to discuss details while talks continued

A credit union that began life in Jamaica’s churches was preparing to grow again. The Gleaner reported that First Heritage Co-operative Credit Union and St Thomas Co-operative Credit Union were planning to merge.

First Heritage was formed on August 1, 2012, when the Churches Co-operative Credit Union merged with GSB Co-operative Credit Union. The combined institution started with more than 165,000 members and $8.04 billion in assets.

By December 31, 2013, First Heritage had total assets of $8.95 billion, members’ savings of $6.17 billion, a loan portfolio of $6.7 billion and group capital of $1.73 billion, with a net surplus of $103.53 million. St Thomas Co-operative Credit Union had about 20,000 members and assets of just under $1 billion.

Neither side was ready to say much while talks were under way. “It’s a work in progress. We really do not want to discuss it at this time,” said Hopeton Morrison, general manager of the St Thomas credit union. First Heritage chief executive Basil Naar said: “I am reserving comments at this time due to the nature of our process.”

The Churches Co-operative Credit Union was one of the clearest examples of Jamaican congregations pooling their members’ money to lend to one another. Its absorption into a larger institution, and now a further merger, shows how far the movement has consolidated. For church members and returning residents looking for mortgages or land loans, credit unions with roots in the church remain an option worth comparing with banks and the NHT, but bigger size also means members must look closely at rates, fees and how their savings are used.

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