Credit Unions: The Godfather Mergers...Part 1

   Just make them an offer they can't.... understand.

The proposed west coast merger between BECU and SAFE credit unions has been all in the news [CUDaily] & [Filson blog]. The merger would create a $33 billion credit union, fourth largest in the U.S.

The financial health of a credit union can usually be diagnosed by looking at just a few measurements: capital level, earnings, delinquency, liquidity, and operating costs. These two credit unions are performing well on all fronts! Both strong organizations.

✔ The only real question on this merger is why the SAFE CU Board is "giving away" the credit union at the expense of every SAFE member?   No question this is a great deal for BECU, and a very, very poor deal for every SAFE CU member-owner.  

✅ SAFE  members might like to request this simple alternative merger proposal: Pay out $1,639 to each and every member of SAFE CU (244,000 folks) on the date of merger. The payout is equal to the member-owned reserves of SAFE CU (@$400 million).

After the merger, former SAFE CU members can enjoy all the benefits promised by the combined BECU merger proposal... and enjoy the $1,639 for a short vacation or a little X-mas shopping.

After the merger and the fair payout, the newly merged BECU will remain a solid, safe and sound credit union with combined assets of $33 billion and with a combined, sterling capital ratio of @11%!

Whoever is advising the SAFE CU Board on this proposed merger might want to re-review the concepts of "fiduciary duty" and personal liability with them.  And mention, how tenacious California class-action lawyers are when they smell blood in the water...

That contested $400 million in member equity at SAFE CU can feed a lot of sharks.

 $400 million up for grabs? Kinda makes your "Jaws" drop doesn't it... 

 

 

 

The Blind Leading The Blind At SECU?

   ... better take a look!

 “The only thing worse than being blind is having sight but no vision.” - Helen Keller  [link]

Credit unions nationwide are merging and "selling out"  - their member-owners in particular! Here's the latest, very large example [link]. This trend will be coming to North Carolina in the very near future!

Have tried over the last few months to encourage the SECU Board and our CEO Leigh Brady to detail their strategy on the issues of merger and charter conversion to the entire membership. The latest request was on November 11th [link]. The two key points were:

✔ For your information, the two issues which I believe need to be addressed are the rights of SECU members in the event of 1) merger, and/or 2) charter conversion. These two important credit union governance changes are occurring with increasing frequency nationwide - among credit unions, large and small alike.

✔ You and the SECU Board could provide tremendous leadership for credit unions by discussing, reviewing, and adopting appropriate governance rules protecting SECU members.  

Lack of vision can indeed be a problem for a credit union... a refusal to speak to the members can also be disabling.

  Is the issue of member-ownership at SECU moot or mute...?