San Francisco FCU to Acquire Summit Bank

In a move marking the eighth full-bank acquisition by a credit union in 2025, San Francisco Federal Credit Union (FCU) has announced its intent to acquire Summit Bank, a long-standing East Bay institution and the oldest woman-founded bank in California, reports Banking Dive. This is also the second such deal in California this year, following Frontwave Credit Union’s acquisition of Community Valley Bank for $56.4 million in January.

According to the press release, the acquisition will enhance San Francisco FCU’s digital banking capabilities and commercial services while expanding its footprint to a total of 10 Bay Area branches. The credit union also plans to retain all current Summit Bank employees to ensure continuity and local expertise. “Community is central to our mission,” said Ray Shams, CEO of San Francisco FCU. “This acquisition helps us continue supporting Bay Area economic vitality and empowers our members with stronger financial solutions.”

Founded over four decades ago, Summit Bank serves mid-sized businesses, professionals, and individual clients, managing approximately $4.5 million in assets. Summit’s CEO Shirley Nelson expressed confidence in the merger, stating, “I’m convinced our clients will still see the can-do spirit that built Summit Bank. I’ll continue to support the Summit Foundation, even as the bank becomes part of a larger entity.” While the terms of the deal remain undisclosed, it comes amid ongoing scrutiny from the Independent Community Bankers of America (ICBA), whose CEO Rebeca Romero Rainey reiterated concerns about credit unions using their tax-exempt status to outbid traditional banks.

Although 2025’s pace of credit union-bank deals is currently trailing last year’s record-setting 22 announcements, industry expert Michael Bell of Honigman expects more to be revealed in the months ahead, potentially closing the gap.