First Tech announces merger with Massachusetts credit union

A Bay Area credit union with a large office in Washington County has announced plans to merge with a Massachusetts credit union.

If the merger is completed, the combination of First Tech Federal Credit Union and Digital Federal Credit Union would create a financial institution with $28.7 billion in assets and more than 1.8 million members, according to National Credit data Union Administration.

The credit unions said the merger would result in more branches and expanded hours and services.

Members are not expected to notice any immediate changes. The credit unions will operate independently until the merger is completed. If the deal goes through, the combined credit union would operate as First Tech Federal Credit Union and utilize Digital's charter.

First Tech was founded in Washington County in 1952 by employees of Hewlett-Packard and Tektronix. It continues to work with technology companies and major employers, including Intel, Nike, Cisco, Amazon and Google. It has $16.7 billion in assets and nearly 700,000 members, including more than 170,000 in Oregon.

After merging with Addison Avenue Federal Credit Union in 2011, the credit union moved its headquarters to San Jose, California, but maintained a corporate headquarters in Hillsboro. The company employs 930 people in Oregon, including across its 12 offices in Oregon.

Digital was founded in 1979 as a credit union for the employees of Digital Equipment Corp. founded. Based in Marlborough, Massachusetts, it has nearly $12 billion in assets, 23 branches and more than 1.1 million members.

First Tech CEO Greg Mitchell will remain in place through the proposed merger. Shruti Miyashiro, CEO of Digital, would become CEO in the event of a closure.

“Our credit unions have a common origin – each was founded to serve the financial needs of technology workers, their families and digitally savvy members across the country,” Miyashiro said in a press release. “The transformative power of this coalition of equals will unlock tremendous potential to create value and opportunity for the people who matter most – our members, our employees and the communities we serve.”

First Tech recently announced plans to close its only Portland location in the Lloyd District, citing a decline in foot traffic and safety concerns. It is expected to close on November 15th.

In addition to Oregon, First Tech has offices in California, Colorado, Georgia, Idaho and Massachusetts, according to its website.

The boards of directors of both credit unions have approved the deal. The National Credit Union Administration and First Tech members still have to approve it.

If the merger receives the necessary approvals, it is expected to close in 2025.

– Matthew Kish covers companies including the sportswear and banking industries. Reach him at 503-221-4386, [email protected] or @matthewkish.

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