Boeing Employees Credit Union, which claims to be the fourth largest credit union in the U.S., is researching three possible locations available for lease—one near Gonzaga University, one in north Spokane, and one in Spokane Valley—as it prepares to establish a physical retail presence here, says BECU spokesman Todd Pietzsch.
Founded in 1935 by 18 Boeing employees, BECU is based in Tukwila. The credit union employs about 1,400 people throughout its 40 financial centers in the Puget Sound area. Membership is open to all Washington state residents, and the credit union says its member ranks grew about 5 percent last year, to 940,600.
It announced Dec. 22 that it plans to open three branches here, and said it was finalizing property negotiations, but didn’t say anything about where the branches might be located.
The three planned outlets here will be what Pietzsch calls cashless branches, and are expected to employ a total of 20 people between them.
“Members can still do everything you could at a normal location; the only difference is the lack of a teller or teller lines,” he says.
Pietzsch says BECU members can use these locations to establish accounts, apply for loans, and perform financial transactions. Each branch will provide free ATM, online and telephone banking services, as well as the opportunity to meet with experts who can give advice on financial decisions like buying or refinancing a home, investing for retirement, or growing a business.
“Of our 40 some locations in the Puget Sound area, I would say only two of them are actual teller locations,” says Pietzsch. “With the use of mobile banking, customers are moving toward having control over those interactions, rather than only being able to access services on certain days, during certain hours.”
Of the planned branches here, he says, “We’re in the process of identifying spots, and looking over lease agreements.” The credit union hopes to have the locations confirmed soon, so that they are ready to open by this fall.
The three locations would be a first for the credit union, which has had an operation center in Spokane Valley since 2005, but operates no retail branches here.
The Spokane Valley operation center employs about 120 people and serves all the credit union’s members, an estimated 4,000 of whom reside here.
Pietzsch says the operation center was established a few years after the 2001 Nisqually earthquake, when it was determined a center on the other side of the Cascades would benefit members in the event of other such disasters.
“It is not a member location, but rather a space to house our backup systems. It could also serve as an additional location for employees should another major disaster affect Western Washington,” explains Pietzsch.
Pietzsch noted the credit union’s growth over the last year, during which it added about 41,500 members to get to the 940,600. That figure, along with its total assets of more than $14 billion as of Dec. 31, makes BECU the largest credit union in the state and the fourth largest in the U.S.
BECU’s net income increased by a little over 8 percent last year, rising to $195.3 million from $180.5 million in 2014.
“With our reserve position where we want it, going into 2016, we’ll be looking for ways to give more back to our members,” Pietzsch says.
“Certainly additional locations is one way we’ll be doing this, but we also look to do it through our products and services,” he says.
The credit union also experienced growth in deposits and total assets last year, as they increased by 10.7 percent and 10.9 percent growth, respectively.
Meanwhile, its total loans grew by 13 percent, coming in at $9.4 billion as of Dec. 31, compared with $8.4 billion in 2014. Pietzsch says the majority of BECU’s loan growth last year was driven by mortgage, business services, and auto loans.
Benson Porter, BECU president and CEO, says, “We believe that expanding our presence in Spokane is a natural evolution for BECU as we continue to drive value for our members, wherever they may be located. These new financial centers will allow us to offer enhanced service to existing members while at the same time reaching new members and building on our 80-year history of service in the state.”