Two healthy and like-size Oregon credit unions, the $145 millionWauna FCU of Clatskanie, and the $162 million St. Helens CommunityFCU are exploring a possible merger which, if approved, couldbecome effective by yearend, it was announced over the weekend.

The consolidation subject to member and regulatory approval isbeing sought for reasons related to both bank/credit unioncompetition and economies of scale, the credit unions said in anon-binding letter of intent.

“We are still in an exploratory stage to see if ourmembers agree,” stressed Michael Chapman, vice president/marketingdirector of Wauna, noting the two credit unions have for years existed withoverlapping membership.

The two northwest Oregon credit unions, along the Columbia Riverbasin and only 30 miles apart, have considered a merger for yearsbut the time now seemed opportune given the area's ongoing economicproblems, said Chapman.

The two home cities and rural Columbia and Clatsopcounties have experienced high unemployment rates of 12% to 15%,made worse by the downturn in the timber, paper and fishingindustries.

“Over the years the two credit unions have reached out to eachother but things never quite progressed until now,” Chapmansaid.

Still to be decided is a new name for the institution as well asthe makeup of the management.

Both credit unions have advanced tech products including mobileservices “but we feel we can do better as a merged organization,”Chapman said, noting the competitive challenges that lie on thehorizon from expansion-minded Portland credit unions and banks.

In a prepared statement, Robert Blumberg, president/CEO of WaunaFCU, said “both organizations are committed to do what is right forthe membership and the communities they serve.

“Both credit unions share a common heritage,” the statementsaid, noting that a merger “would produce greater efficiencies andsupport needed technology advancements.” Lee Chitwood, chair ofSt. Helens, said also it is important members and the publicunderstands “that a merger such as this is completely differentthan mergers between the mega-banks.”

Their reason to merge is to generate more profits “and with noconsideration to their customers. When credit unions merge, it isthe membership that benefits because we are non-profit,” saidChitwood.