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

Deal Watch: Credit unions enter $5 billion merger

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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
 

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