Two tech-focused credit unions to merge into $29 billion company

Two credit unions with roots in technology companies are merging.

On Monday, Digital Federal Credit Union in Marlborough, Massachusetts, and First Tech Federal Credit Union in San Jose, California, announced their intent to combine through a merger of equals. The merger is subject to approval from the National Credit Union Administration and First Tech's membership, and is expected to be completed in late 2025.

If completed, the new entity will have $28.7 billion of assets and stretch across eight states with more than 50 branches. It will operate under Digital Federal Credit Union's charter and the First Tech Federal Credit Union name, with headquarters in San Jose. 

"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," said Shruti Miyashiro, president and CEO of Digital Federal Credit Union, in a press release.

Miyashiro, who was named one of American Banker's most powerful women in credit unions in 2022, will become president and CEO of the newly combined credit union. First Tech president and CEO Greg Mitchell will remain with First Tech through the integration.

The proposed merger "will create a coast-to-coast presence, nearly double our branch network, expand service hours, and provide a technology platform to best serve a growing number of members and their families," according to a list of FAQs on DCU's website. 

First Tech was founded in 1952 by employees of Hewlett-Packard and Tektronix, which designs test and measurement equipment. Its select employer groups include Microsoft, Intel, Cisco, Amazon, Nike, Intuit and Google. 

"Uniting the capabilities … will allow us to innovate and push the boundaries to deliver more elevated experiences by making material investments in products and services," said Mitchell in a press release.

DCU was formed by computer company Digital Equipment Corporation, or DEC, in 1979. DEC was bought by Compaq in 1998, which was bought by Hewlett-Packard in 2002, according to the Computer History Museum. The word "Digital" in the credit union's name is meant to pay homage to the credit union's heritage for its longtime members and denote the high-tech financial institution it had become for newer members, according to the institution's website. 

Both credit unions have invested in technology to boost their products and services. For instance, DCU launched a self-service mortgage portal in 2022. First Tech created an open banking portal to connect with fintech partners using application programming interfaces, including student loan provider Splash Financial and personal lender Happy Money. It also experimented with cryptocurrency trading at one point. 

"Our name helps to attract people working in tech firms, as it shows we're focused on the tech sector and understand its needs," said Mike Upton, First Tech's former chief digital and technology officer, in a 2022 interview. 

Both credit unions were on American Banker's lists of top 20 credit unions in 2024 with the most assets, with the most loans and leases, and with the most deposits. First Tech has nearly $17 billion of assets; DCU has $12 billion of assets.