PENDLETON — After 12 years, it was an upbeat yet resigned goodbye.

Oregon Sen. Gordon Smith thanked Oregon voters Thursday for allowing him to serve their interests, both rural and metropolitan, and at the same time bestowed well-wishes on the man who pushed him out of office in the national Democratic wave.

The “Obama tsunami,” Smith called it, his arm around his wife Sharon.

“Winston Churchill once wisely observed that Democracy is not always a polite employer, but its judgments must be respected and observed,” he said from their home that overlooks his hometown in the state’s rural northeast corner. “And we respect the judgment of the people of Oregon.”

The two-term Republican lost to Jeff Merkley, Democratic speaker of the state House, marking the first time in 40 years that an incumbent senator from Oregon has been booted from office. Smith was the last GOP senator along the West Coast south of Alaska.

An emotional Smith said his efforts for children’s health and mental health care were his proudest achievements in the Senate.

In 2004, he championed a suicide prevention law named after his son, Garrett, who killed himself in 2003. His push for the bill showcased an emotional side that he rarely displayed publicly, and those emotions were evident again Thursday.

“This is a job that takes it’s toll on families, and in my son’s name we were able to do a great thing that is every week saving the life of a young person. I’m very proud of that,” he said haltingly, while his wife wiped away tears.

He said he regrets the negative campaign, “because it runs counter to my nature and my spirit, and I regret many of the false impressions given on me.”

“But this isn’t bean bag. This is hardball,” he said, as he wished Merkley well.

Chief of staff John Easton said they were particularly pleased to have saved the so-called county payments law, which gives Oregon more than $250 million a year to help rural schools and counties hurt by logging restrictions.

“It was a tremendous relief to ensure that the county payment extension was completed before the election, because we don’t even know if we’ll be going back this year,” he said. “It was the last train leaving the station, and we were on the train. County payments were on the train.”

Born in Pendleton on May 25, 1952, Smith remains there with his family in a stately brick home overlooking the city. A life-size portrait of the millionaire, who earned his fortune in the frozen foods industry, greets visitors from atop a marble staircase inside the front door.

Whether Smith will return to day-to-day oversight of his company — Smith Frozen Foods in Westin — remains to be seen.

Still unknown, also, is whether voters have seen the last of him. He said it was just too soon to know if he’ll pursue public office again, and laughed when asked about a possible gubernatorial bid in 2010 when Gov. Ted Kulongoski steps down.

“I have no plans, nor any plans to make, about a future career in politics,” he said. “Just put on my boots and get back to the pea fields.”

Looking to the future, he urged Merkley to fight for the people on both sides of the Cascades.

“To be the lion’s voice for farmers who need water, for timber workers who need access to public land,” he said. “That’s been one of the great privileges of my life, and I would hope that public officials in Oregon would do more than just give lip service to these people.”