Alaska USA FCU to Acquire Global CU of Washington

Alaska USA Federal Credit Union announced Friday that it intends to acquire a Washington credit union with U.S. Air Force roots, a heavy presence in Spokane and clusters of branches in Idaho and northern Italy.

The Anchorage-based credit union is continuing its expansion in the lower 48 by acquiring Global Credit Union through a merger. If approved by Global CU members and the NCUA, the merger is expected to be completed in late 2022.

Alaska USA ($10.3 billion in assets, 707,604 members as of June 30) and Global CU ($571.4 million in assets, 45,930 members) said in a news release they now have combined assets of over $11 billion. However, other credit unions in the Top 20 are also growing fast — both organically and through mergers.

If the merger had occurred June 30, Alaska USA would have moved from the 17th-largest credit union by assets to the 15th largest, leaping ahead of Star One Credit Union of Sunnyvale, Calif. ($10.6 billion in assets, 114,914 members) and Lake Michigan Credit Union of Grand Rapids, Mich. ($10.4 billion in assets, 413,178 members) to land just below VyStar Credit Union of Jacksonville, Fla. ($11 billion in assets, 778,348 members).

Global CU was founded as Fairchild Federal Credit Union in 1954 on Fairchild Air Force Base, just outside Spokane in eastern Washington. It now is open not only to Air Force personnel and family, but also residents of the areas it serves in eastern Washington and northern Idaho. It would continue to operate as Global Credit Union in those areas after the merger, the credit unions said.

Alaska USA said it has 67 branches in Alaska, Arizona, Washington and California.

Through the merger Alaska USA would gain 12 locations:

• Alaska USA, which had one branch in Spokane County, would add six branches and Global CU’s corporate office there.
• Alaska USA, which had no branches Idaho, gains two near Coeur d’Alene.
• And, on top of that, it would gain three branches in a 250-mile strip across northern Italy from Camp Darby near Florence on Italy’s west coast, to 185 miles northeast to Camp Ederle, Vicenza and another 70 miles northeast to Aviano Air Base, about 50 miles north of Venice.

Geoff Lundfelt, president/CEO of Alaska USA, said it will offer jobs to all Global CU employees, which he said will expand the workforce to about 2,200 employees in five states and abroad. NCUA data shows Alaska USA had 1,850 full-time and 13 part-time employees as of June 30, while Global CU had 153 full-time and 23 part-time employees.

“These employees have demonstrated a tremendous ability to serve Global Credit Union members and as the combined organization will be larger and more complex, it is important to us that we work to maintain their strong workforce,” Lundfelt said.

Also, most of Global CU’s board members plan to continue to serve as volunteer officials of a regional advisory committee for Alaska USA.

Jack Fallis, president/CEO of Global Credit Union, said its “members and employees will benefit from the strength resulting from the combination.”

“Our members will enjoy the security and expanded services this merger will provide, while retaining Global’s name, service and commitment they have come to rely on,” Fallis said. “Global’s long history of community involvement and charitable giving will continue as both organizations share the same philosophy of giving back to the communities we serve.”

If the merger had occurred June 30, it would have made little change in Alaska USA’s income for the first half.

Alaska USA’s annualized return on average assets for the first half was 1.21%, up 79 basis points from the first six months of 2020, when the COVID-19 pandemic began and loan loss provisions were high. Global CU’s first half ROA was 0.95%, up 71 bps. Their combined first half ROA would have been 1.20%, up 79 bps.

Both are well capitalized. Alaska USA’s net worth ratio stood at 8.95% on June 30, up 46 basis points from a year earlier. Global CU’s ratio was 8.6%, down 41 bps. Together it would have been 8.93%, up 41 bps.