Q. Why an amalgamation, why not just an alliance or partnership?

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1 Member FAQs August 2018 Our Board of Directors and senior leaders of River City Credit Union (RCCU) and Beaumont Credit Union (BCU) have explored the possibilities of building one stronger, diverse credit union. It s an exciting opportunity to create a unified organization that would continue to support the members, community and employees in which we serve. The boards of both credit unions unanimously voted in favor to move forward with exploring an amalgamation at the May 29 and 31, 2018, board meetings. We invite you to attend the member town hall meetings to be hosted in July 2018, the member forums to be hosted in August 2018 and the special annual general meeting in September 2018 where we will ask for your support of the merger. The boards and senior leadership are committed to providing you with ample information about this process along the way. Q. Why are we exploring an amalgamation? A. The financial services industry is evolving at a rapid pace as member needs and regulatory requirements are continuing to change. When we look ahead, these changes will continue to put pressure on our ability to deliver service, products and expertise. The opportunities to share resources and expertise to continue to provide you with what you need from your credit union are our top priority. Q. Why an amalgamation, why not just an alliance or partnership? A. The two partner credit unions explored collaboration as part of the process thoroughly and came to the conclusion that an amalgamation would allow for a stronger, more diverse credit union, which will have long-term viability and profitability and still allow us to retain our roots. Q. How will an amalgamation benefit members? A. The benefits to our members and employees through this amalgamation include: Enhanced service with additional branch locations, ATMs and extended call centre hours Long-term viability created from new economies of scale focused on financial stability Enhanced efficiency and effectiveness of operations Retain our local presence and history Access to more specialization for wealth management and business banking advice and product solutions Our employees will have more career opportunities No-job losses or branch closures Stronger financial results will allow us to have a greater investment in training and development for our employees Enhanced community investment that is specific to the community needs

2 Q. Has a decision already been made? A. No. We are exploring the option of amalgamation. There are a number steps in the process. 1. Both boards must receive and approve the business case by July 31, If the boards approve the business case, the regulator must review it and offer comments. 3. Then two-thirds of members in attendance at the Special General Meeting will need to vote to approve the amalgamation agreement at a special general meeting. 4. The last step is approval by the regulator and government. Q. Where can I access updates on what is happening? A. Regular updates will be provided to our members via our dedicated amalgamation website: Q. What will be the size of the new credit union? A. Subject to regulatory and membership approvals, the new credit union will support members and have over 45 employees in 4 locations in the Edmonton and Beaumont area, representing $318 million in assets. Q. Who will lead the new credit union? A. A CEO recruitment process is currently underway to determine which of the two existing CEOs will be the new CEO. An expected announcement will be made by the end of June Q. What is driving this amalgamation? A. An amalgamation between River City and Beaumont will create a more effective platform for investment into the resources that all credit unions require such as marketing, data processing, banking systems, networks and compliance and regulatory oversight. Regardless of the size of a credit union, these investments are necessary. By merging resources the two credit unions can share those future costs over a larger membership and asset base. Q. When will members vote on the amalgamation? A. Management of both organizations drafted a formal business case based on a comprehensive process of due diligence to confirm value and benefits which will be gained for members of each credit union. Member town hall meetings, in-branch forums and the special general meeting will occur once the business case is approved by both boards. Assuming this happens: Member town hall meetings to answer questions regarding the proposed merger will be scheduled: River City Credit Union - July 24, 2018, at River City Credit Union Main Branch beginning at 6:30 pm

3 Beaumont Credit Union July 24, 2018, at Beaumont Community Center beginning at 6:30 pm In-branch forums to answer questions regarding the proposed merger will be scheduled: August 27, 2018 at River City Main Branch for River City Credit Union August 27, 2018 at Beaumont branch for Beaumont Credit Union Special Meetings for members to vote on the proposed merger will be scheduled: September 10, 2018, at Beaumont Community Center for Beaumont Credit Union September 12, 2018, at Chateau Louis for River City Credit Union Q. How much will the amalgamation cost? A. There will be costs associated with the amalgamation; however, the first year revenue lift more than satisfies the costs Q. I like the merger idea but do not like the name. Can it be changed? A. The YES vote required is approval of the merger and the name. The name could change in the future if required. Q. Where will the Head Office be located? A. There will be two administration centers, one in Beaumont and one at River City in Edmonton. The legal mailing address will be in Beaumont. Q. Will Beaumont Credit Union continue to recognize the need for French speaking employees? A. Our current hiring policies do not have a French language requirement however we are pleased that we have employees who can speak in both official languages (English/French) as well as many other languages. Q. What is the name of the new Credit Union? A. The name selected and subject to regulatory approval is ABCU Credit Union. Q. How was the name selected? A. The naming process involved both Board of Directors and an external branding consultant. Should the merger be approved further branding will be completed to bring ABCU Credit Union to life. Q. Will the name Beaumont Credit Union be used? A. Beaumont s name will be reflected in the signage and branding but from a legal perspective it will not be used.

4 Q. How many board members from River City will be going to the new Board? A. Four board members from the existing board of River City and five board members from the existing board of Beaumont will join the new board. Those members from River City are Rick Colwell, Sandi Giesler, Kevin Moore and Brent Trombley and from Beaumont, Alice Chalifoux, Roy Eckert, Adam Guiney, Jim Higginson and Robert (Bob) Robinson. Q. How was Beaumont (members, board and staff) reception to these discussions? A. The response from the Beaumont community, board members and staff has been positive and the CEO continues to engage with the key stakeholders as required to answer any questions that may arise. Q. Will the name of River City change eventually? A. Yes. River City s name will be reflected in the signage and branding but from a legal perspective it will not be used. Q. What is Beaumont Credit Union s bond? A. Beaumont Credit Union is an open bond credit union that provides user-friendly business and personal banking services to the Beaumont and surrounding communities. Q. When will we see the financials? A. A summary of the financials will be available to members at the Town Hall meetings on August 27, 2018, and the Special General Meeting on September 10 and 12, After that, as part of the Annual General Meeting, to be held before March 31, 2020, the financial statements will be included with the Annual Report.

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