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 clean fuels opportunity

News
Monday, November 10, 2014
111014-dirtyfuel-thumbBY KIM MOORE | OB RESEARCH EDITOR

A market for low-carbon transportation fuels has a chance to flourish in Oregon if regulators adopt the second phase of the state’s Clean Fuels Program.


Read more...

Water World

November/December 2014
Wednesday, October 22, 2014
BY KIM MOORE

Fred Ziari aims to feed the global population.


Read more...

The short list: 5 companies making a mint off kale

The Latest
Thursday, November 20, 2014
kale-thumbnailBY OB STAFF

Farmers, grocery stores and food processors cash in on kale.


Read more...

Reimagining education to solve Oregon's student debt and underemployment problems

News
Thursday, November 13, 2014
carsonstudentdept-thumbBY RYAN CARSON | OP-ED CONTRIBUTOR

How do we skill up our future technology workforce in a smart way to take advantage of these high-paying jobs? The answer shouldn’t focus only on helping people get a bachelor’s degree.


Read more...

Healthcare Perspective

November/December 2014
Wednesday, October 22, 2014
BY KIM MOORE

A conversation with Majd El-Azma, president and CEO of LifeWise Health Plan of Oregon, followed by the Healthcare Powerlist.


Read more...

Healthcare pullback

News
Thursday, November 20, 2014
112014-boehnercare-thumbBY JASON NORRIS | OB CONTRIBUTOR

Each month for Oregon Business, we assess factors that are shaping current capital market activity—and what they mean to investors. Here we take a look at two major developments regarding possible rollbacks of the Affordable Care Act (ACA).


Read more...

Downtime

November/December 2014
Wednesday, October 22, 2014
BY JESSICA RIDGWAY

Bob Dethlefs, CEO of Evanta, balances work and play.


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