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First Tech Routing #321180379
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First Tech and Digital Federal Credit Union Announce Intent to Combine

 

More benefits and services

The combined credit union will provide members an unrivaled digital experience, a coast-to-coast branch network with expanded member service hours, and access to premier financial products and advisors.
Read Press Release

A letter from our CEO

Dear First Tech Member,

I am pleased to report that the Board of Directors of First Tech and Digital Federal Credit Union (DCU) have unanimously approved a merger of equals uniting the nation’s two leading technology focused credit unions. This combination will benefit our members, employees and the communities we serve.

At First Tech, we place the interests of our members first. In this regard, you should see little to no change in the systems and processes that many of you have come to know and love.

Member Benefits

  • Through this merger, you will have increased access to a coast-to-coast branch network including 50 branches operating in eight states, expanded service hours, best in class technologies, access to premier financial products and a dedicated team ready to serve your needs now and into the future.
  • Together as a combined organization, we will have the ability to make material investments in research and development, products and people which will allow us to better serve you.
  • Our new organization will become the largest philanthropic leader in the industry, investing over $4 million to improve lives of others in our community.

The combined organization is privileged to serve nearly two million members living in all 50 states and 93 countries around the world while holding more than $27 billion in assets and $3.0 billion in member’s equity. These metrics equal strength, stability, and the capacity to serve members for generations to come.

Timeline and Next Steps

The merger process is subject to the approval of the National Credit Union Administration (NCUA) and our membership. We’re expecting a closing date in late 2025, with both institutions operating as independent credit unions until that time.

Executive Leadership

Upon completion of the merger, DCU President and CEO Shruti Miyashiro will succeed me as President and CEO of the combined credit union. The Board of Directors and I have a tremendous amount of respect and confidence in Shruti, and I look forward to watching her and the entire First Tech family soar as I move into my planned retirement at the end of 2025.

This is important news for our collective membership and we’ve added this new page on our website with a link to today’s press release and an FAQ document below that may help answer your initial questions. This page will be updated regularly and you can expect to receive more information related to the merger and upcoming membership vote. In the meantime, if you have any questions about your banking, insurance, or investment relationships, please do not hesitate to contact us.

I’m extremely privileged to serve as the CEO of your credit union and am grateful for the trust you place in our employees every day. We were founded on a philosophy of people helping people and as we build on this legacy for the next era, I’m confident you’ll be as excited as I am about the possibilities that lie ahead.

Thank you for your membership,

Greg Mitchell
President and CEO
First Tech Federal Credit Union
gmitchell@firsttechfed.com

Frequently asked questions

As part of our strategic planning process, the Board of Directors and executive leadership teams continuously monitor economic conditions and look for opportunities in the marketplace for strategic growth. With our CEO Greg’s retirement to plan for in the coming years, and a deep respect for DCU’s decades-long legacy of serving members in New England, it’s opportunistic to join together to thoughtfully accelerate delivering on our mission.

Chartered by the NCUA in 1979, and originally created to serve employees of Digital Equipment Corporation, DCU is based in Marlborough, Massachusetts. DCU proudly serves more than 1.1 million members with 23 branches in both New Hampshire and Massachusetts. DCU is the largest credit union in New England and ranks among the top 20 credit unions in the nation as measured by $12 billion in assets. You can learn more about DCU online.

There are many benefits of this merger! First Tech and DCU are two of the strongest credit unions in the country, and the combined organization will continue to have very strong capital and loan-to-deposit ratios, ensuring members’ savings are safe and secure. The new organization will be a powerhouse with the scale and resources to create even greater impact through the annual reinvestment into research and development, accelerating and simplifying technology, transforming digital experiences and efforts to sustain our long-term relevancy. We’ll have a coast-to-coast presence which almost doubles our branch network, expanding service hours and providing a broad platform to serve a growing number of members and their families.

This is a strategic partnership, a merger of like-minded organizations for the mutual benefit of our members, employees and communities. Our credit unions have a shared origin, each created to serve the financial needs of technology employees and their families through reinvestment and innovation. While First Tech is larger in asset size at $17B, DCU brings more than 1.1 million new members to the organization, creating vast opportunities for innovation and growth. The new organization will have about $28.7B in assets, one of the largest credit unions in the country, serving more than two million members with more than 50 branches in eight states.

Considering a merger with another credit union takes time and careful exploration to ensure there will be meaningful benefits for both organizations, our employees, and the members we serve. Of course, there are numerous strong credit unions on the west coast we respect. However, considering our shared vision, coast-to-coast footprint and migration of many of our technology partners, it makes sense to join forces with DCU. These are all natural synergies for a prosperous future for our credit union.

Yes, that’s what makes uniting the two organizations such a strategic value position! Both institutions are well capitalized, far exceeding regulatory standards, have strong liquidity and maintain a balanced loan-to-deposit ratio. These factors, in addition to operating in a safe and sound manner, set the stage for a very strong combined entity—one that will have the resources and scale to deliver value to our membership for years to come.

Yes, we do! DCU was also founded on the premise of people helping people, with employees coming to work every day to make a difference in the lives of members by doing the right thing and acting with integrity—much the same way First Tech shows up as engaged, dynamic and genuine. DCU is also deeply committed to the community, also donating more than $2 million annually, and shares our goal of fostering a brighter, more equitable future in the communities where we live and work.

With the unanimous support of our Boards of Directors and Executive Team, on Sept. 30, 2024, both organizations officially announced our intent to merge into one entity. The first step in the process is to jointly seek approval from the National Credit Union Administration (NCUA), the federal agency regulating both entities. This review and approval process is expected to be completed in 2025. Upon federal approval, we will then turn to First Tech’s members for a final vote to approve the merger with DCU. After a positive vote from our membership, we’ll begin the process of integrating our two organizations, with an anticipated integration date in late 2025. Until this operational integration, both organizations will continue to operate separately, under their own name with no changes to member relationships.

Here’s how the membership approval process works—each of our credit unions have federal charters to offer financial services in our service areas, and once we merge into one organization, we only need one federal charter to operate. As we finalized our due diligence, leadership determined that DCU’s charter will be the most advantageous charter to retain, with the charter referred to as the “continuing credit union”. As a result, First Tech will assume DCU’s charter, and regulations ask that First Tech members have the opportunity to vote on this change. In the months to come, more information about what to expect with the merger and voting process will be shared, so members and employees feel as well informed and confident about the merger as our joint leadership.

The name of the combined credit union will be First Technology Federal Credit Union, or First Tech for short. After researching affinity for our brands in our regions and nationwide, both respected brands had strong brand awareness. Leadership jointly determined that retaining the First Tech brand name, and the federal charter of DCU offers the greatest possibilities going forward. Prior to uniting under the First Tech name in late 2025, both organizations will engage members and employees in collaboration to define a shared brand experience that reflects and celebrates the culture and heritage of both credit unions.

Leadership teams continue to partner very well on mutual decisions to ensure the best interests of both organizations and their respective membership. The only organizational decision made to date is that First Tech President and CEO Greg Mitchell will remain in his role through his planned retirement and until systems and processes are integrated, likely at the end of 2025. DCU President and CEO Shruti Miyashiro will become CEO of the newly combined credit union, uniting employees, and members under the DCU charter and First Tech Federal Credit Union name.

Shruti has a deeply rooted passion for strategic thinking and building long-term, sustainable business models focused on delivering transformative value for members, employees, and communities. For more than two decades as an executive leader in the financial services industry, she has led complex businesses in fast-paced environments with an authentic leadership style that prioritizes culture, service excellence, member-centric focus, and innovation. Under her leadership, DCU has been regularly recognized with multiple awards, including “America’s Best Credit Union in Massachusetts” by Forbes, “Best for Small Deposits” by Newsweek, and “Best Credit Unions” in USA Today. Since 2003, Shruti has served on a number of community, non-profit, professional, and corporate boards, including as a current board member for Jack Henry, an S&P 500 technology company.

The combined organization will maintain corporate offices on both coasts, with the headquarters remaining in San Jose, CA. This is very similar to the way First Tech operates today as our formal charter is based in San Jose. Advances in technology have made it easier than ever to conduct business from multiple locations, plus we’ll have extended member service hours due to time differences.

Yes. Addison Avenue Investment Services in partnership with Raymond James will continue as the full-service financial planning and investment services provider for our expanded First Tech membership. In addition, First Tech Insurance Services, our independent insurance agency through our wholly owned subsidiary, will continue as well. Both organizations have received national recognition as leaders in the industry and we’re proud to continue offering these services to our expanded membership.

Most certainly! As a matter of fact, once combined, the new organization will become the single-largest national philanthropic credit union leader in the country, donating more than $4 million to nonprofits each year. We’ll continue to support children’s health, STEM education and fundamental needs in our communities.

News of any change will undoubtedly raise questions and both organizations are committed to progress updates for members at key points along the way. Members have an important voice—and final say—in this merger, so there will be plenty of opportunity to learn more about this strategic partnership and the benefits to members and employees. Once we receive merger approval from First Tech members, the process of integrating the operations of organizations will begin with an anticipated operational integration toward the end of 2025. Until late 2025, there will be no changes to any member accounts.

There are no changes to your accounts with First Tech, Addison Avenue, or First Tech Insurance Services right now. In the months to come, an Integration Team will make operational decisions to ensure any potential changes result in stronger benefits or enhanced features for you. So that’s good news! At the earliest, any potential change will happen at the end of 2025 when our operations come together as one combined company. When that time comes, of course our teams will help members and clients through any transition.

That’s fabulous news! You’ll continue with your accounts at First Tech and DCU as you do today. As we approach merging in late 2025, we’ll reach out and provide you more information on how we’ll support you through the transition.

It is one of the largest mergers for any credit union and another example of our spirit of innovative partnerships. Yet it’s a very complementary fit for both organizations’ membership. We serve a similar membership, but in different parts of the country. That means we’ll be better able to serve our Select Employer Groups (SEGs) and members across the globe with an expanded branch network and call center hours, not to mention enhanced products and services. The good news is that you’ll still meet the same friendly employees at your local branch, now with the expanded resources of a coast-to-coast credit union. Most importantly, we have a way of doing the right thing for our members. That’s the credit union difference, and it’s here to stay.

Yes. Credit union deposits will continue to be federally insured by the NCUA, with up to $250,000 in protection for an individual membership. If members have accounts at both credit unions, we’ll work together on options for insurance coverage since the NCUA provides $250,000 coverage for balances held in different ownership categories at different institutions. Please reach out to your local branch if you have concerns about insurance coverage.

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.

We will keep firsttechfed.com/merger updated with more information about DCU, the merger process—including your membership vote—and timelines. This page will be updated regularly, and you can also expect to receive emails from First Tech about the upcoming member vote. It’s an exciting time for your credit union, so thank you for your support! Of course, if you have any questions, please send an email to First Tech President and CEO, Greg Mitchell, at gmitchell@firsttechfed.com.

The merger remains pending and is subject to member approval, and that of our principal regulators. We expect to complete the merger in late 2025 while adding new branches, new products and even greater convenience.
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