Digital Federal Credit Union (DCU) and First Tech Federal Credit Union have revealed plans to merge in a move to create a new credit union worth $28.7bn.
The merger of equals between the two American credit unions aims to benefit their members, employees, and communities.
Upon the completion of the proposed deal, the enlarged entity will serve approximately two million members across more than 50 branches in eight US states.
Digital Federal Credit Union and First Tech will continue to operate independently until systems and processes are integrated and operational. As a result, members of both parties will not experience any immediate changes.
Once integration is complete, the combined company will operate under Digital Federal Credit Union’s charter and the First Tech Federal Credit Union name.
Digital Federal Credit Union president and CEO Shruti Miyashiro will become the president and CEO of the newly formed credit union.
Founded in 1979, Digital Federal Credit Union is said to cater to more than 1.1 million members across all 50 US states and Puerto Rico. The $12bn financial cooperative has 23 branch locations and 35 ATMs across Massachusetts and New Hampshire.
Digital Federal Credit Union’s members also have additional access to its digital banking platform and mobile app. Other features include more than 5,600 branches in a shared CO-OP network and more than 30,000 surcharge-free ATMs across the country.
Miyashiro said: “Our credit unions have a shared origin—each created to serve the financial needs of technology employees, their families and digitally savvy members across the country.
“The transformative power of this merger of equals will unlock enormous potential to deliver value and opportunity for the people who matter most—our members, our employees and the communities we serve.”
Headquartered in San Jose, California, First Tech provides a full suite of financial services, including traditional banking, online banking, mortgages, financial planning, various consumer loans, and insurance services.
First Tech president and CEO Greg Mitchell said: “Uniting the capabilities of the nation’s two leading technology-forward credit unions will allow us to innovate and push the boundaries to deliver more elevated experiences by making material investments in products and services to meet the needs of our growing membership.
“With shared principles of people helping people, the new organisation will also become the single-largest national philanthropic leader in the industry, donating more than $4 million annually to positively impact our local communities.”
The merger has secured unanimous approval of both the Digital Federal Credit Union and the First Tech board of directors and their respective leadership teams.
Subject to approval from the National Credit Union Administration (NCUA) and First Tech’s membership, the proposed transaction is anticipated to be completed in 2025.
