A merger of two Oregon credit unions, the $661 NorthwestCommunity CU of Springfield and the $148 million Mid Oregon CU ofBend, has been called off, the apparent result of managementsuccession issues and the economy.

The actual decision to end talks “indefinitely” between thecentral Oregon CUs was made in June but was formally detailed inmember e-mails distributed and made public lastweek.

The planned merger, seen as a way to add branches and enhancetech-driven services, had been announced as a letter of intentnearly a year ago and coincided with a spate of Northwestmergers led by the consolidation of First Tech CU of Portland,Ore., and Addison Avenue FCU of Palo Alto, Calif., into a $4.9billion institution.

In its e-mail, 70,000-member Northwest Community said it had“researched a possible merger opportunity” with 21,000-member MidOregon for months but that it was “recently decided that this notthe right time to proceed.”

“Upcoming changes in our leadership and the state of the economyare two significant pieces of our decision,” said thenewsletter.

With the retirement of former CEO Helen Byrnes, “we feltthat a merger would have forced us to make a rushed decision aboutwho our future leader would be. We need to be certain that ournew leader is someone who fully understands our mission andphilosophy.”

In July Northwest Community named John Iglesias, the former headof the $330 million Salal CU of Seattle, as its new CEO.

In mentioning the management shakeup, the Bend Bulletinnoted over the weekend that last March Byrnes, the ex-CEO had“unexpectedly resigned to care for her ailing husband, promptingNorthwest to search for a new president and CEO.”

Bill Anderson, Mid Oregon CEO, was not available forcomment on Monday.

Anderson is the current chairman of the newly formed Northwest Credit UnionAssociation. The newly combined Oregon and Washington leagues holdan inaugural meeting of the NWCUA this week in Tacoma, Wash.

The Northwest Community e-mail took note of the economicproblems which have gripped the state's central corridor andthe need for a well-prepared CEO, with Iglesias chosen for thejob.

The new CEO must “guide members and communities in westernOregon through what is likely to remain a financially challengingeconomic climate.”

It is “a tall order” but the Oregon economy needs “more time tostabilize,” the newsletter said.