With a proposed Oregon merger deal scrapped over the weekend,the president/CEO of the $134 million Wauna FCU ofClatskanie, Ore., Robert Blumberg, said Monday his creditunion has lost interest in pursuing any future consolidation withthe $162 million St. Helens Community CU “considering they have aPR nightmare over there.”

Blumberg was referring to the sudden collapse of talks followingthe signing of a letter of intent last month between the twonorthwest Oregon credit unions to strike a merger deal.

Going on its own, the board of St. Helens, now the target of amember petition drive to oust five directors over past managementdecisions, said it has hired Brooke Van Vleet, a former top exec atFirst Tech FCU in Palo Alto, Calif., as its new president/CEO.

Van Vleet's hiring was accompanied by an announcement from St.Helens Community CU that it was terminating the letter of intent.

“I think they need to get their house in order first and so thisis not a good time to explore a merger,” said Blumberg, who earlierhad said the merger would benefit both credit unions by enablingthem to offer more products and achieve new economies.

Diana Ruff, assistant vice president of marketing at St. Helens,acknowledged the public angst and the petition drive that ensuedfollowing the May firing of Jeff Schwarz, the former CEO. Shesaid despite the management turnover, the credit union hasperformed well during difficult times in the area economy.

Sources said the member group objecting to the firing and to themerger had expressed puzzlement as to why Schwarz had been let gowhen the credit union was in good financial shape. There hasbeen no formal comment from the St. Helens board on Schwarz'sdismissal.

Ruff said the member bloc seeking the petition must obtain 500signatures to get clearance for a special meeting to elect newmembers. Two new members to the board elected at the June 26annual meeting were not being challenged, said Ruff.

The five board members targeted include the chairman, LeaChitwood, along with Michael Hafeman, Marty Borrevik, Richard Louieand David Graham. Not being challenged are Tom Tussing, vice chair,and Michael Ismert.

Blumberg of Wauna said St. Helens “has some local issues thathave to be dealt with and we have no interest in getting drawn intothat situation.”