Home Back Issues May 2010 Deal Watch: Credit unions enter $5 billion merger

Deal Watch: Credit unions enter $5 billion merger

| Print |  Email
Articles - May 2010
Friday, April 16, 2010
BcashY JON BELL

Tom Sargent has technically been retired from his role as CEO of Beaverton's First Tech Credit Union since March, but he's staying on with the company to see it through its proposed merger with the Bay Area's Addison Avenue Federal Credit Union.

But if the nearly $5 billion deal, which has been hailed as one of the largest such mergers in recent times, fails to gain regulator and member approval, First Tech might find itself without a captain.

"I have my limits," says Sargent, who's been at the helm of the credit union for the past 25 years.

Fortunately for First Tech, which was founded by Tektronix employees in 1952, and Addison Avenue, all signs indicate an ultimate approval of the merger. If that happens, Addison's current president, Benson Porter, will assume leadership of the new entity, which would be called First Tech Federal Credit Union.

Sargent says talks between the two credit unions began in October. State and federal regulators with the National Credit Union Administration are currently reviewing the merger application and vetting the deal.

Only the 155,000 members of the state-chartered First Tech will vote on the deal because only its charter will change. The merged credit unions will operate under Addison Avenue's federal charter.

Sargent notes that members approved two prior First Tech mergers — the $110 million State Employees Credit Union in 2002 and the $50 million Oregon Metro Credit Union in 2004 — by more than 80%.

He also says that although there may be some trepidation among members about the mega credit union created by the merger (total assets would be $4.6 billion and membership would top 320,000), the combined resources of the two credit unions will ultimately provide more benefits.

In addition, staffing levels are projected to be the same, though for all intents and purposes, First Tech's new headquarters — or "office of record keeping," as Sargent would have it called — will be in California.

MERGERS AND ACQUISITIONS
PRICE EXP. CLOSE BUYER / PARENT (HQ) SELLER / PARENT (HQ) ANNOUNCED
$90M Q2 Advanced Energy Industries (CO) PV Powered (Bend) 3/24
$46M Q2 PacificSource Health Plans (Eugene) Clear One Health Plans (Bend) 3/23
$6M Q2 F.P. Supply/ Millman Lumber (MO) and Forest City Trading Group (Portland) North Pacific Group assets (Tigard) 3/1
$4.3M Q2 China Aviation Industry General Aircraft/Aviation Industry Corp of China (China) Epic Air (Bend) 3/27
ND Q2 Clackamas Insurance Agency (Clackamas) Premier (Salem) 3/31
ND Q2 Connected Platforms (Vancouver) Emery Computer Center (MT) 3/4
ND Q3 First Tech Credit Union (Beaverton) Addison Avenue Federal Credit Union (CA) 3/8
ND Q2 Grant's Hearing Center (Eugene) Kezar Hearing Centers (Eugene) 3/4
ND Q2 Jerry's Rogue Jets (Gold Beach) Rogue Mail Boat Service (Gold Beach) 3/1
ND Q1 LHC Group (LA) Assets of Salem Hospital Home Care/Salem Hospital (Salem) 3/11
CAPITAL RAISING AND CONTRACTS
PRICE (TYPE) COMPANY (HQ) / LEADERSHIP INVESTOR (HQ) ANNOUNCED
$48.4M (bridge replacement contract) Hamilton Construction (Springfield)/Scott Williams ODOT 3/9
$14.6M (public offering) PremierWest Bancorp (Medford)/James Ford Investors 3/22
$10M (helicopter contract) Evergreen Helicopters/David Rath (McMinnville) U.S. Army 3/29
$3M (venture investment) ShopIgnither (Portland)/Matt Compton Madrona Venture Group (WA) 3/3
$1M (angel investment) Second Porch (Portland)/Brent Hieggelke Oregon Angel Fund (Portland) 3/15
$265,000 (I-5 welcome sign contract) Pacific Electrical Contractors (Medford)/James Hess ODOT 3/11
$170,000 (angel investment) DeltaPoint (Portland)/Richard Lazar Oregon Entrepreneurs Network 3/8
$25,000 (seed investment) Enjoy Life (Portland)/Maria Corbinos Oregon Entrepreneurs Network 3/8
ND (first-round funding) ActiveTrak (Portland)/Ken Westin ProtectCell (MI) 3/9
REAL ESTATE TRANSACTIONS
PRICE BUYER / PARENT (HQ) REAL ESTATE (LOCATION) / SELLER (HQ) ANNOUNCED
<$3M Bulk Handling Systems (Eugene) Commercial building (Eugene)/Northwest Web (Eugene) 3/3
$1M Star Properties Group (Portland) 16,900 sq. ft. apartment space (Lincoln City)/Norman B Dorries Trust (CA) 3/16
$640,000 City of Keizer 53,000 sq. ft. for urban renewal (Keizer)/Flora Tiersma (Keizer) 3/17
$600,000 City of Portland 9 acres natural resource land (Portland)/various 3/10
 

More Articles

The more they change, the more they stay the same

March 2014
Tuesday, February 25, 2014
100-best-collageBY BRANDON SAWYER

The 100 Best Companies get more creative with perks and more generous with benefits; employees seek empowering relations with management and coworkers.


Read more...

Buy the book

News
Tuesday, March 25, 2014
2 03.25.14 thumb bookshopBY VIVIAN MCINERNY | OB BLOGGER

Oregon is home not only to many fine writers but also several accomplished small publishers.


Read more...

The 2014 100 Best Companies to Work for in Oregon

News
Friday, February 28, 2014

100best14logo ThumbnailThe 21st annual 100 Best Companies to Work For in Oregon list was announced Thursday night at an awards dinner at the Oregon Convention Center.


Read more...

Green your workplace

News
Thursday, April 03, 2014
100Green14logo200oxBY OB STAFF

Learn how to green your workplace and lower your environmental footprint at the office. Oregon Business presents a two-hour "Greening Your Workplace" seminar on May 28th, 2014 at the Nines Hotel in Portland.


Read more...

Spring thaw

News
Thursday, April 17, 2014
Spring ThawBY JASON NORRIS | OB BLOGGER

The “polar vortex” of 2014 seems to have finally thawed and we believe this change in weather will bring more sunshine to the U.S. economy as well.


Read more...

Video: Kickstarting Oregon business

News
Thursday, March 27, 2014
02.04.14 Thumbnail VideoBY JESSICA RIDGWAY | OB WEB EDITOR

Watch this OB Original Video about three Oregon companies and how crowd-funding "kickstarted" their business ideas.


Read more...

On fire

March 2014
Tuesday, February 25, 2014
BY JESSICA RIDGWAY

A self-proclaimed “chile head,” John Ford “grows, eats and does everything spicy.” 


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS