Merger Of CU Giants OKd
PALO ALTO, Calif. – NCUA said yesterday it has approved the combination of Addison Avenue FCU and First Tech CU in the biggest credit union merger ever.
The merger, one of several pending among large credit unions, will create a credit union $4.6 billion in assets serving the high-tech sector, including tech powerhouses Hewlett Packard, Microsoft, Agilent, Intel, CH2M HILL, in addition to Oregon-based Nike.
Benson Porter, current president and CEO of Addison Avenue CU, will be the president and CEO of the new credit union as Tom Sargent, longtime president at First Tech is retiring.
Both credit unions are healthy. Addison Ave. had a $7.9 million net for the first six months of the year, even after a $2.7 million charge for the corporate credit union bailout, and net worth of 9.4%. First Tech had a $4.7 million first half net after a $2.4 million corporate bailout charge, and net worth of 8.6 million in capital.
Benson Porter, Addison Avenue’s president and CEO, and Brooke Van Vleet, First Tech’s interim president and CEO, released a joint statement saying they “are very pleased to receive merger approval from the NCUA, an important first step in the approval process. Before First Tech can proceed to a member vote, Oregon’s regulators must also weigh in and render their decision.”
NCUA is expected to announce the approval of the First Tech/Addison Avenue merger in its upcoming Monthly Activity Report. The two CUs announced their intent to combine in March.