The SAFE/BECU Mega-Me Merger: Fees - Fi - Fo - Fumble?

  "This partnership is a powerful alignment of purpose and potential that leverages our strengths and recognizes our shared values," said Faye Nabhani, President and Chief Executive Officer of SAFE Credit Union. 

"SAFE members will gain:"

• Access to broader branch network (80+ locations). [available free now to all SAFE members!]
• Innovative programs like first-time homebuyer grants and automatic loan repricing.
• Measurable value through reduced fees.
• Increased investment in our community through partnerships and philanthropy.

😎 Let's take a quick look at SAFE fees and see if "Measurable value through reduced fees" holds up to scrutiny. Here's the fee schedule from SAFE's audited financials:

                                                                     2024  (000)          2023 (000)
✔ Overdraft protection fees                          $ 12,374           $ 12,089
✔ Checking account fees                                    3,221                3,778
✔Money Market and Savings account fees             340                   348
✔Commercial account fees                                    355                   336
 Member and consumer fees                                    919                   946
✔ ATM fees                                                          2,214               2,133
✔ Shared branching fees                                     1,007                  917
 Other fee income                                                    53                    56

✔ Debit card fees                                              22,202             23,087       ✔ Credit Card Interchange fees                          5,005               5,124 

✔ Investment fees                                               5,477               4,769
 Gain on sale/other                                                 18                   - 

Total                                                              $ 53,185           $ 53,583 

✅ As you see, SAFE collects @ $53 million in fees annually. But not all fees are created equally! For example:

1) Debit/credit card fees are not charged directly to SAFE members by the credit union. These fees are charged by folks like MC/Visa on your purchases and then shared back with the CU - these fees represent over one-half ($27+million) of the total $53 million. These fees will not change. 

2) Investment and commercial account fees are fees which specific members negotiate based on their specific business or wealth management needs. These are generally subject to renegotiation by members annually,  without any need for merger!

3) ATM/shared branching fees are charged only to SAFE members/non-members who choose to occasionally use these services and are shared back among participating credit unions. These fees are generally set cooperatively by multiple credit  unions. These fees will not change.

4) Checking/MMSA account fees - Hard to say exactly what these are, but with total fees @ $3.6 million and over 200,000 total accounts, that works out to about a buck-fifty fee per account per month! Even a full $1.50 per month reduction won't buy you a cup of coffee at Starbucks - in Seattle!

5) Overdraft/NSF fees is the elephant in the room!  An issue of increasing embarrassment to all credit unions. Many banks have dropped this often corrosive, punitive fee practice altogether. SAFE charges $14 and BECU charges $10. If SAFE lowered its fee to match the $10 BECU rate, the worst case scenario in lowered income would be $3,534,000, much cheaper than paying $400+ million to mega-me merge!

😎  "Measurable value through reduced fees"... doesn't seem feasible?!

   And appears to be a feeble excuse to giveaway a credit union...