SEATTLE and FOLSOM, Calif.–Another mega-merger among credit unions has been proposed: the $29-billion BECU in Washington and the $4.3-billion SAFE Credit Union said they are seeking to combine.
If SAFE CU’s members approve, upon completion, the combined credit union will serve 1.8 million members and operate more than 80 locations under BECU’s charter, At more than $33 billion in assets, it would be the fourth largest credit union by asset size in the U.S, the organizations said.
“Together, the combined organization will further the cooperative principle of people helping people by continuing to strengthen its investments to deliver enhanced products, services and experiences for all members and communities,” the credit unions said in a statement.
In addition, the credit unions said member value will be “enhanced” as the merger will “significantly deepen both organizations’ ability to continue to make meaningful community investments and extend BECU’s community-focused banking to new markets across a broader geographic footprint.”
The Financials
As of Sept. 30, BECU posted $121.2 million in net income, with net worth of 12.45%. SAFE CU had $21.3 million in net income and net worth of 10.33% as of the same date.
SAFE Credit Union was founded in 1940 as Sacramento Air Force Employees Credit Union for workers at McClellan Air Force Base. It now has a 13-county FOM. BECU, which stands for Boeing Employees Credit Union, was chartered in 1935 and now has an FOM that includes all of Washington State and select counties in Oregon and Idaho.
Exciting Opportunity
“This is an exciting opportunity for both credit unions, made possible by our shared values of putting our members first and making deep connections with our communities, as well as a strong commitment to sound operations and financial management, which are the hallmarks of BECU and SAFE,” BECU President and CEO Beverly Anderson said in a statement. “At BECU, we’ve always believed that the strength of our cooperative comes from our unwavering focus on people – our members, our employees and the communities we serve. This combination will accelerate our ability to extend our reach and impact to new members and markets, delivering state-of-the-art products and services fueled by BECU and SAFE’s dedicated teams. It is inspiring what this combination enables us to do and I look forward to working closely with Faye Nabhani and the dedicated SAFE team as we begin this journey together.”
‘Powerful Alignment’
Added Faye Nabhani, president and CEO of SAFE Credit Union, in a statement, “This partnership is a powerful alignment of purpose and potential that leverages our strengths and recognizes our shared values. As the needs of our members and communities continue to evolve, combining credit unions builds on our strong foundation, ensures we deliver additional value and maintains the best of what has made SAFE a successful and trusted financial partner for over 80 years.”
The proposed combination, which along with a vote by SAFE members is also subject to regulatory approvals, is expected to close by early 2027, if approved, the organizations said.
Anderson to Serve as CEO
Upon closing, Anderson will lead the combined credit union and Nabhani will serve as market president for the Greater Sacramento region, reporting to Anderson. Once combined, SAFE will have representation on the combined credit union board. Jefferies LLC is serving as exclusive financial advisor to BECU, the credit unions said.
The two CUs have created an online resource related to the merger here www.becuandsafe.org.
4 Responses
What am I missing? The FAQs read like PR everything feels smoothed over but I’m not seeing a meaningful reason for this merger beyond an asset grab. Both credit unions are financially sound and not at risk of failing, so the justification feels thin. The whole situation resembles a bank-style acquisition more than a true cooperative merger.
Honestly, I’m not surprised. The larger credit union has been drifting away from its mission and the cooperative model for the past three years.
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Where’s the like button for this comment 🙂
Jefferies LLC advising a credit union merger is peak irony. It’s like hiring a fox to design the new henhouse security system and then acting surprised when it looks like a bank takeover.