BECU's headquarters in Tukwila, Wash. (Credit/BECU newsroom)
The trend of mega-mergers grew Tuesday as the Seattle area’s BECU announced plans to acquire SAFE Credit Union of Sacramento, Calif., in early 2027.
The merger would raise BECU’s asset rank a notch to No. 4 and extend its reach 750 miles south to include 17 offices in the Sacramento area. The credit union already has 22,000 members in California.
The definitive agreement signed by the credit unions is subject to a vote by SAFE members and regulatory approvals.
Upon completion, the combined credit union will serve 1.8 million members and operate more than 80 locations.
The merger appears to be slightly accretive to BECU earnings. BECU’s ROA, which was 1.66% for January-through-September, would have been 1.69% if the merger had been completed before January 2025.
BECU President/CEO Beverly Anderson said both credit unions have shared, member-first values, and “a strong commitment to sound operations and financial management.”
“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 Credit Union’s dedicated teams,” Anderson said.
Faye Nabhani, who has been SAFE’s president/CEO since 2021, will become BECU’s market president for the Greater Sacramento region, reporting to Anderson, who will continue to lead BECU.
“This partnership is a powerful alignment of purpose and potential that leverages our strengths and recognizes our shared values,” Nabhani said. “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 Credit Union a successful and trusted financial partner for over 80 years.”
CU Times asked BECU the amounts of any planned payments in the merger agreement, if any, to employees or special dividends to SAFE members. BECU said it would share additional details on the deal when they become available.
BECU had been the nation’s fifth-largest credit union based on its $28.9 billion in assets Sept. 30. It would have ranked No. 4 with $33.3 billion in assets if the merger had been completed then.
The two other largest pending mergers would also put credit unions into the Top 10.
First Tech is expected to rejoin the list by the end of the year through its proposed acquisition by Digital Federal Credit Union of Marlborough, Mass. Based on September figures, it would have a combined $29.7 billion in assets, which would currently rank it at No. 4 and rank it as No. 5 after BECU merger.
Both BECU and First Tech would follow No. 3 SchoolsFirst Federal Credit Union of Santa Ana, Calif. ($34.4 billion in assets, 1.5 million members). Shifting down to No. 6 would be PenFed Credit Union of Tysons, Va. ($29.4 billion in assets, 2.7 million members).
The other Top 10 newcomer would be Ent Credit Union of Colorado Springs, Colo., which would join the list sometime next year when it expects to complete its acquisition of Wings Financial Credit Union of Apple Valley, Minn. Based on September data, it would rank No. 10 with $19.1 billion in assets, barely edging out Suncoast Credit Union of Tampa, Fla. by $43 million.
Contact Jim DuPlessis at JDuPlessis@cutimes.com.
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