From Our Board Chair:
To our members,
This past year has been a time of exciting transition for BECU and another representation of the strength and resilience of our financial cooperative. As we ended the year, we said goodbye (and a heartfelt thank you) to Benson Porter after ten years of dedicated service as our president and CEO. We welcomed our new leader, Beverly Anderson, and introduced a new chapter for BECU. The expertise, energy and focus she brings will help drive the credit union forward and create even more compelling and meaningful opportunities for our members and communities. Through the transition, we continued to navigate a challenging and turbulent economic environment from a strong financial position.
As many of you know, BECU's origin story is steeped in perseverance and community. In 1935 during the Great Depression, a small group of Boeing employees pooled their funds to provide loans for co-workers to buy tools and support other everyday needs when they were unable to get loans elsewhere. BECU's start epitomizes how credit unions help people achieve their goals by working together despite challenging economic and uncertain times. The past three years of the COVID-19 pandemic have brought this “people helping people” philosophy to life in new and familiar ways as we’ve supported the varied financial needs of our members and business members.
Today, BECU is proud of our financial strength and pays it forward to our members and communities. Membership increased by 3.6% in 2022, and we now serve nearly 1.4 million members across the Pacific Northwest and the country. We ended 2022 at $28.8 billion in assets, down 4.6% compared to the prior year. Member deposits remained relatively flat year-over-year at $25.9 billion, after two years of record-setting growth. Our member loan portfolio grew by 23.1% from 2021 to $16.3 billion in 2022.
With a net worth ratio of 10.66% (up from 9.82% in 2021), BECU is well-buffered against unusual or unexpected economic losses thanks to our strong capital and liquidity positions. This means we have healthy cash balances as well as ample assets available to support cash needs. Our teams work hard each day to ensure we are here for you today, tomorrow and well into the future.
Our 2022 annual report highlights some of our key efforts from the past year, including new initiatives and programs, and steps we’ve taken to drive our commitments to our members, to our employees and to our communities forward. Whatever tomorrow brings, BECU is here to help members pay down debt, improve credit scores, create budgets, find lower rates, pay bills on time and build rainy-day funds.
On behalf of the board, I am confident of the strength of our financial position and, importantly, our aligned focus on empowering you — our members — to reach your financial goals. We look forward to continuing to partner with you in the coming year.
Debra Somberg, Chair, BECU Board of Directors
From Our President and CEO:
To our members,
It is my honor to write this to you in service as your new president and CEO. The organization’s history and legacy of impact in the Pacific Northwest are not lost on me. There are several reasons why I am enthusiastic about BECU’s future. The first is our deep commitment and devotion to our purpose: As a cooperative, we bring people together to improve the financial well-being of our members and their communities.
As I have visited many of our Neighborhood Financial Centers around the Puget Sound, I can feel and see the impact we are having on our members’ lives. Our member Net Promoter Scores (or NPS), which measure customer experience and loyalty, are some of the strongest in the industry. It warms my heart when a member tells me how much they love being a BECU member!
The second reason is the passion and engagement of our team members for serving you, our members. In meetings, town halls and hallway conversations, I witness the excitement our employees have as we chart the next phase of our journey. Our employee surveys and average tenure are a testament to their commitment to serving our members and communities.
Additionally, I am energized by the possibilities and opportunities before us to deliver even more impact. We are the largest credit union in Washington state and the fourth largest credit union in the country. These are incredible accomplishments. However, we recognize that we can deliver more substantial impact to an even broader set of members and communities through reimagined and innovative products, services and experiences that meet their needs.
My commitment is to maintain BECU’s proud roots in our founding story and values while evolving the cooperative to meet the changing needs of a more diverse, more complex, more digitally driven society.
One area where we will intensify our efforts is in improving access to financial services for even more individuals and communities. In the past year, we've initiated Spanish-language financial services, offered accounts to those rebuilding their credit history and provided grants to first-time homebuyers. I am committed to us doing even more.
Our teams have also taken meaningful steps on our journey to becoming a more inclusive and equitable organization. Our commitment is not only the right thing to do, but it is also smart business. Embedding equity and inclusion into everything BECU encompasses, from people to programs, will build deeper and more meaningful relationships with our members and deliver better business results.
As you can see, I’m extremely excited about the path ahead for BECU. Thank you to you, our members, for your commitment to your cooperative. We look forward to a bright future ahead — together.
Beverly Anderson, President & Chief Executive Officer
Continue to other sections of our 2022 Annual Report:
As a not-for-profit credit union owned by our members, we make decisions based on what members want and need. We put people over profit and are always thoughtful about the investments we make to sustain the cooperative without compromising our culture.
In 2022, BECU reinforced its commitment to members as the pandemic's economic impact waned and inflation took hold. Using our strong financial position, we sprung at the chance to return profits to our members and build a more equitable future for our communities. Here's how that adds up to our formula for success.
Grew Membership and More
Over the course of 2022, we welcomed new members, grew our loans and offered industry-exceeding service to you.
We're growing our membership, reach and services responsibly so you can rely on BECU today and in the future. It's a continuous balancing act as we manage our capital, profitability, return to members and investments to better serve you. So, we're thoughtful about how we spend members' money to sustain the cooperative. Thanks to an appropriate level of return on our assets, we have the capital to continue to grow, invest and be safe and sound, even when larger economic forces lead to uncertainty and volatility.
Membership
Welcome, new members and, hello again, longtime members. We celebrate you both! Overall last year, our membership grew to nearly 1.4 million (a 3.6% increase over 2021), including more than 73,500 business members. That includes over 108,200 new BECU members, more than 16,000 that joined through our digital channels, and over 10,700 new business members.
Sustainable Growth
Fun fact: The National Credit Union Administration (NCUA) considers a credit union as "well-capitalized" if it has a net worth ratio of 7%. This ratio reflects a credit union's financial strength and ability to protect against unforeseen or unusual losses.
At the end of 2022, BECU’s net worth ratio was 10.66% (up from 9.82% in 2021), well above the NCUA’s well-capitalized level. Thanks to careful stewardship of your resources, we're in a robust and strong financial position.
Thanks to our friendly rates, fees and terms, our lending ramped up in 2022.
- BECU Loans: $16.3 billion (23.1% increase from 2021)
- Loans originating online: $1.4 billion (34.8% increase from 2021)
Delivered Member-First Services
Whether you used our apps, called us or walked into a Neighborhood Financial Center (NFC), we were there for you. Digital tools coupled with human support helped empower you to achieve your financial goals and dreams.
BECU services help you deposit checks digitally, refinance your home, manage your budget, replace debit cards and so much more. Throughout 2022, you got in touch with us in the following ways:
Ways You Counted on Us in 2022:
To discover whether BECU members are satisfied with our service offerings, we use Net Promoter Scores (NPS), which measure customer experience and loyalty. Members are asked: “How likely is it that you would recommend our company/product/service to a friend or colleague?” A score of 50 or more is considered excellent. In 2022, we earned an average NPS of 64.90, well above averages in the financial industry.
Speedier Services
In 2022, we hired additional Contact Center employees to meet member needs and transactions and reduce waits. With our new dedicated loan application phone number, more members heard a “yes” in less time. Our 45 upgraded ATMs provided faster, more convenient service.
Our recent Video Banking rollout allows you to work with a Member Consultant from the comfort of your own home or any location. Try it sometime — you can open new accounts for yourself or your children, apply for loans, or make account or mortgage inquiries.
Victor in Bothell was a fantastic representative of BECU. The service he provided to someone I was selling a car to was the direct reason I opened an account. He helped her navigate a few things and knew what he was talking about. Because of him, I am going to switch my banking to BECU.” — James B., BECU Member
Generated Return to Members
As a financial cooperative, BECU returned value to our members to enhance their financial health in several ways. We're not seeking short-term profits, but long-term advancements in your quality of life.
Other institutions, like banks, measure their success by the amount they return to shareholders. As a member-owned not-for-profit, BECU assesses our success based on "Return to Member." Return to Member is how much we returned to members in the past year through great rates and low or no fees, compared to bank averages.
In 2022, we returned over $362.3 million to our members for an average of $265 per member, up 8% year-over-year. Members use this money to save more, invest toward their goals or spend on something fun.
Here are examples of how we returned money to members:
Lowered Rates with Reprice Programs
We saved over 42,500 eligible members an estimated $2.7 million last year by lowering interest rates if their credit scores improved and if they were already not paying the lowest rates. Eligible members may experience an average rate improvement of 3% on their BECU Visa credit card following the 2022 loan program.
Eliminated and Reduced Fees
For BECU checking accounts, we eliminated and/or lowered our Non-Sufficient Funds (NSF) and overdraft fees, saving our consumer and business members millions of dollars in the long run.
Increased Savings
To keep up with a rising-rate environment, BECU increased rates for deposit accounts, with competitive rates in savings and CD accounts. Member Advantage checking and savings, Money Market and CD accounts enjoy an even higher interest rate.
Helped with Homes
Last year, our First-Time Homebuyer Grants totaled almost $1.26 million, assisting members with down payments on more than 170 mortgages to help purchase their first home (or condo, or townhouse). Eligible members pay as little as 1% toward their down payment or closing costs on their primary residence after grants provide up to $10,000 (up to 3%) of a first home down payment or closing. BECU has continued to expand our support for first-time homebuyers by adding Oregon as an eligible state in 2023.
While searching for her dream home, BECU member Kindle S. observed a magnolia tree growing in the yard of one house for sale. The magnolia was her mother's favorite tree. “It was almost as though my mother was speaking to me saying, ‘Yeah, this is the house,’” Kindle says. She put in an offer. She also shared that historically, her ancestors couldn't always buy homes, which can be a wealth-building tool. Her new home not only nurtures the magnolia's blooms, but gives Kindle wealth to pass along to generations of her family. “BECU made all of this possible.”
Invested in Member Financial Fitness
BECU's overall success depends on the financial health of our members. Our campaigns and programs improved your financial fitness and resilience so you can handle whatever comes your way next.
While 2022's higher rates led to increased CD and savings account returns, rates also rose on credit cards and loans. So, employees helped members understand how refinancing debt at fixed, low interest rates benefits their long-term financial health. Variable interest rates can lead to monthly payments that make it hard to budget while rising rates add up to higher monthly payments.
Due to the rising interest rate environment, we encouraged members to consolidate debt at a low rate to build financial health and resiliency. Our employees worked with members to identify existing debt with high or variable interest rates and provide them with fixed, lower rate solutions.
In total, nearly 13,000 total debt consolidation interactions helped borrowers save in the following ways:
- Personal loans: Consolidated high interest-rate debt into a low monthly loan payment, in combination with a 0.50% reduction off regular loan interest rates.
- New HELOCs: Locked in low rates for debt consolidation, withdrawing money as necessary.
- Fixed-rate advance: Converted existing BECU variable-rate HELOC to a fixed-rate amortized Home Equity Loan.
- Low-rate BECU Visa: No-fee balance transfer from a high-interest credit card into our low-rate card featuring 0% interest for a year.
Financial Health Programs
We evolved resources and programs to serve over 13,100 members and community members. More than 700 members took part in our free Financial Health Check program for coaching on budgeting, saving, and goal-setting. We also partnered with GreenPath Financial Wellness to provide free one-on-one financial counseling. More than 4,200 members used GreenPath's in-depth counseling services, with some members using their debt management program to tackle $6.8 million in debt.
Member Financial Health Survey
Our hard work seems to be paying off. More than 14,300 BECU respondents to our annual financial health survey (an increase from 2021) reported that they're generally financially healthier than national survey respondents. Members also said that they:
- Spend less money than they're making.
- Feel highly confident they can save for an emergency and retirement.
- Are aware of BECU resources, including Money Manager and the Financial Health Check program.
At age 18, Rolando A. wanted to attend college, but as an undocumented student at the time, he was ineligible for federal aid and could only apply for private loans. He soon faced overwhelming debt and credit issues. He found his way to BECU and was able to begin rebuilding his credit starting with a BECU credit card. “BECU helped me get back on my feet,” he says.
Delivered on Equity and Inclusion
Member Equity Commitment: For our members, we provide greater access to banking services in Black, Indigenous and People of Color (BIPOC) communities to support healthy financial futures for all.
In 2022, BECU took strides to become a more inclusive and equitable organization for our members. Here are a few examples.
Spanish Language Pilot
At least 11 Neighborhood Financial Centers (NFCs) are in areas where 10% or more of the population speaks Spanish as their first language. Our Spanish-language membership has grown tremendously. Since 2018, our use of an over-the-phone interpreter service increased by 172%. Our inability to serve members in Spanish at times left members feeling frustrated and confused. To address this need, we developed an innovative Spanish language pilot project.
In March 2022, 16 BECU Spanish speaking-certified employees began assisting members with everyday banking transactions in eight NFCs. These NFCs — including Tukwila, Everett, and Auburn, Washington — met the 10% Spanish-speaking population criteria. Through the pilot, employees assisted members in Spanish with 2,000 financial transactions. “Mil veces mejor”, one member said in response, which translates to “A thousand times better.”
It feels great to help members in their own language and to see members leave feeling valued. The gratitude members express for assisting them in Spanish is both encouraging and rewarding!” — Irving C., BECU Employee, Everett Financial Center
History Heritage Months
Throughout 2022, we celebrated our diverse communities with BECU employees and members through events and programs, BECU blog content, social media channels and our email newsletter. We acknowledged:
- Black History Month
- Women's History Month
- Latinx History Month
- Pride Month
- And more!
Our ongoing Equity in Action: It's On Us Initiative in partnership with the Intentionalist encourages members to "spend like it matters," and try a free treat on our tab. Treats were available at 60 local, participating small BIPOC-and woman-owned businesses throughout the year.
Through Intentionalist.com, we encourage exploration of diverse businesses in our communities. The Intentionalist platform includes Latino, Black, Asian, Woman, Minority and LGBTQ+-owned businesses, such as restaurants, spas, art galleries, fitness gyms, bookstores and boutiques.
For example, for Women's History Month in March, BECU members could visit the website intentionalist.com/becu-equity-in-action for a list of woman-owned businesses. Clicking on a business name reveals the business' backstory, photos, owners and a code for a free item while supplies last, such as an appetizer or dessert.
Expanded Services and Products
In 2022, we made investments in new banking products to improve member financial access, rewards, credit scores and more.
Created Credit
We now report authorized card users' activity to credit bureaus, including teen users. It's a great new way to build credit history if you've never had a card before— or if your previous credit wasn't great.
Accessed Accounts and Payment Services
In 2022, we found a few new ways to make your financial life a little easier. BECU debit cardholders can now use the convenient, contactless palm payment of Amazon One at participating stores like Whole Foods and The Walk-Off Markets at T-Mobile Park.
Our new SMS One-Time Password process allows you to smoothly verify BECU debit card enrollment in a digital wallet without Contact Center assistance, cutting 1,000+ calls to our Contact Center per month.
And we've made getting your next debit card in the mail easier than ever — just request a debit card through BECU.org.
Over the past two years, we remained focused on helping our members navigate the economic impacts of the pandemic with the right tools for the job. To further strengthen this commitment, in 2020 BECU established a cross-functional team called the FinHealth POD to specifically focus on the development of new solutions that would improve member financial health. Driven by extensive member research, we came up with BECU Envelopes, which allows members to direct money toward specific savings goals through various digital envelopes within their BECU savings or Money Market accounts.
The product was designed based on member needs with a goal of assisting them with not only regular, planned savings, but also with a critical need of preparing for the unexpected by building emergency savings. Now members can easily move money into digital envelopes to help organize and track their savings goals, all in one account. They can create up to 12 envelopes, each dedicated to their personal financial goals.
BECU Envelopes was initially offered through a pilot program in 2021 and rolled out to all members in 2022. Around 25,000 BECU members have accessed the tool and have collectively put aside $45 million within digital envelopes. Amazing job, members!
Powered Up with Partners
We partnered with other brands to offer deals and discount opportunities for members and find innovative ways to give back to our communities.
Expanding in Oregon
We launched a new partnership with pro women's soccer team Portland Thorns — watch for our field-level LEDs and signage next time you're in the Rose City. Thanks to our participation in the Tix for Kids Community program, more children were at those games too. Portland, Oregon-area nonprofits sent disadvantaged youth to enjoy Providence Park professional soccer matches, free of charge.
BECU also kicked off official partnerships with the University of Oregon and Oregon State University. Don't worry Husky and Cougar fans, we still have our partnerships with our Washington universities (#housedivided). Because we serve 11 counties in Oregon (and soon to be more!), we also support Oregon universities passionate about their students, the community, and loyal fan bases cheering on the Ducks and Beavers.
BECU signage was added to the two Oregon universities' stadiums and arenas, as we engage in the schools' community and equity efforts. One example: the 50th anniversary celebration of Title IX, which offered new opportunities for women to excel in college athletics. For Beaver student athletes, we provide financial education through Oregon State University's Champions of Play Program.
I have the opportunity to bring BECU's brand values to life through strategic partnerships and create an impact with our partners and communities we serve.” — Kristin L., Senior Manager of Affinity Partnerships
Singing KEXP's Praises
We're drumming up big numbers for Seattle public radio station KEXP's eclectic music catalog. Whenever BECU members use their debit card with KEXP's cassette-tape art, one cent per transaction goes to the nonprofit radio station. Here are our Top 4 KEXP-BECU hits in no particular order (remember mix tapes?):
- $400,000+ in total 2022 donations for KEXP
- $748,600 in total contributions since 2020
- 14,500 new members with KEXP-branded cards
- 1 BECU-KEXP album released
BECU partnered with KEXP to launch "Live at KEXP Volume 10" Anniversary Album this year. The 19-track album showcases established and emerging artists, and proceeds from the dually released $10 digital-vinyl collection go toward the performing artists and independent record stores.
We recognize the essential power of public radio to transform lives and connect people through music. Over the last 50 years, KEXP has grown into a cultural force for listeners worldwide, bringing communities together. We are proud to partner in celebrating local artists and providing necessary support to keep music alive in our communities, all in line with the credit union philosophy of 'people helping people.’” — Tom Berquist, BECU's Chief Marketing Officer
Start-up Savvy
BECU works with the University of Washington's CoMotion lab, enabling financial start-ups to create new, effortless ways to access, share and build wealth. This year's UW CoMotion and 2022 winning start-ups included:
- Asa Financial: Accelerating fintech and credit union collaboration, connections and marketplaces.
- Honeycomb Credit: Crowdfunding lending for small business.
- NetGiver: No-fee charitable giving platform powered by credit unions.
- Pocketnest: Financial wellness platform for millennials and Gen X.
Served Member Deals and Discounts
We hope to see even more in your rainy-day savings — so we dug up deals and discounts to help you spend less, save more (and have fun!). In 2022, members saved over $2.6 million dollars using BECU deals and discounts.
Passport Discounts
BECU members receive a complimentary membership to our member discount program powered by Passport Unlimited, which includes thousands of free discounts on local dining, entertainment, hotels and resorts, professional services and more. Sign up and download the app today to discover significant percentages off as you plan your upcoming night out or summer week away.
Year-Round Savings
Check out our BECU.org deals and discounts page for local community events, sports games, concerts and more:
- Winter: Attend a minor league hockey game, visit the Museum of Flight or Pacific Science Center.
- Spring: Catch our newest football team — Seattle Sea Dragons — at 50% off, save on Turbo Tax or attend a free paper shredding and electronics recycling event.
- Summer: Watch NASCAR races for $5 at Evergreen Speedway or cool off without overheating your wallet at Wild Waves Theme & Water Park.
- Fall: Snag discounted UW and WSU Football tickets, take the kids to "Do the Puyallup" with Washington State Fair discounts or find your dream car at the Seattle Auto Show.
Served as Your Advocate
BECU advocated for credit union policies with state and federal legislators and regulators.
Our team worked to advance conditions fair to credit unions and addressed issues potentially impacting our members. Important topics included:
- Preserving the credit union tax credit: Not-for-profit financial cooperatives like BECU are exempt from Washington state business and occupation taxes, allowing us to return more money to members, keeping fees and interest rates low.
- Protecting your data: We supported legislation that protects members' information from fraudsters while ensuring compliance with state and regulatory requirements.
- Creating access to housing: BECU and other credit unions play an essential role in creating pathways to homeownership with affordable rates and competitive pricing. We supported legislation and regulation that guaranteed credit union access to the secondary mortgage market.
- Financial literacy: To help students better prepare for a financially healthy and vibrant future, BECU supported policies that promoted financial education opportunities within our education systems.
I love BECU! Best banking decision to move from a traditional bank to BECU.” — Evlin H., BECU Member
Enhanced Business Success
We supported local BECU member businesses in our communities, because your bottom line is our priority. A few of this year's business accomplishments include:
Eased money transfers domestically by offering Business Online Wire Transfers. Business members who use Business Online Banking can access the system 24/7 and manage payees, set up and automate recurring wire payments, and enjoy security features such as monitoring activity, wire limits and two-factor authentication.
Provided free advertising on our BECU Passport Discount Program to boost customer interactions. When using the app, shoppers can see "Business MBR" to find hundreds of BECU-banked businesses, including the following services:
- Dining
- Home building, inspection and interior design
- Skin and hair care
- Healthcare, fitness and wellness
- Professional business services
BECU members are highlighted in the BECU Passport app, with history heritage month-featured businesses, too. Each member listing offers contact information, a description of services and any exclusions or disclaimers.
Reduced or eliminated business member Non-Sufficient Funds (NSF) and overdraft fees to save your business money.
Expanded our Affordable Housing Loan program by funding $20.7 million in new Commercial Real Estate Loans. This money supports 190+ new affordable housing units in our communities.
We also established a new relationship with Mt. Baker Housing Association with the closing of a cash-out refinance on a 35-unit South Seattle Affordable Property. The additional funds will be used for capital improvements and new affordable housing projects for the organization. Mt. Baker Housing Association is a local nonprofit affordable housing developer with over 850 units under development through 2025, which will house another 2,000 residents.
Continue to the next section:
Read other sections of our 2022 Annual Report: