Multi-Billion-Dollar Credit Unions in California & Massachusetts Plan Merger

The $16.7 billion First Technology Federal Credit Union in San Jose, Calif., and the $11.9 billion Digital Federal Credit Union in Marlborough, Mass., said Monday they plan to merge in 2025.

Pending approval from the NCUA and First Tech members, this year’s largest proposed consolidation would create the sixth largest financial cooperative in the nation, which would manage $28.7 billion in assets and 3,320 employees, who would run 57 branches in eight states and serve 1,832,690 members living in all 50 states and 93 countries around the world.

“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,” Digital FCU President/CEO Shruti Miyahiro said in a prepared statement. She will lead the combined organization and First Tech President/CEO Greg Mitchell, who plans to retire, will remain with the credit union through the systems integration process.

If the merger gets the green light, the combined organization would operate under Digital FCU’s charter and under the First Tech FCU name.

Digital FCU was chartered in 1979 to serve the financial needs of employees of the Digital Equipment Corporation, which was one of the world’s largest computer manufacturers and a pioneer in minicomputers. The company was acquired by Compaq in 1998, which was then sold to Hewlett Packard in 2002.

First Tech was chartered in 1970 to serve the financial needs of employees at Hewlett Packard, Microsoft, Agilent, Intel, Cisco, Google and other technology companies.

“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,” Mitchell said in a prepared statement.

The combined credit unions would maintain corporate offices on both coasts, with the headquarters remaining in San Jose.

In its Q&A on how the planned merger would affect First Tech employees, the credit union stated the following: “As we make our way through the integration process, all decisions will carefully consider any impacts to employees and will be shared in a transparent and timely manner. At this early stage, there are always more questions than answers, which can be really hard. Our employees are extraordinary, and the intent is to help them through the transition, providing understanding, development opportunities and career growth well into the future.”

First Tech said it expects to post updates about the proposed consolidation progress on the website firsttechfed.com/pages/announcement.