FORMER GOLDEN 1 CEO QUESTIONS SAFE CREDIT UNION’S PLAN TO MERGE
by Stan Hollen September 28, 2026
[About the author: Stan Hollen became CEO of The Golden 1 Credit Union in Sacramento and guided its massive statewide expansion from 1984 through 2001. Following a three year stint as CEO of Liberty Enterprises, a supplier of data services to credit unions, he served as president and CEO of CO-OP Financial Services in Rancho Cucamonga until his retirement in mid-2016 ]
Local Focus And Control Are At Stake
I question the need for the proposed SAFE CU merger with Boeing Employees Credit Union (Tukwila, WA). If SAFE merged with another California credit union and members gained access to more branches it would make sense. The SAFE executives would not make their huge payouts, but the members would greatly benefit. Imagine, for example, the advantage to merging with Golden 1 Credit Union. Local focus and control would be retained.
One wonders if SAFE really sought mergers with other California credit unions. SAFE is large enough that economy of scale cannot be a reason to seek a merger into a larger credit union.
SAFE was always looked to as a leading credit union in Sacramento and California. This will no longer be the case.
Proceeding without Member Approval
The SAFE Board of Directors has clearly signaled its intent to seek merger approval from the state regulatory agency even if a majority of members do not approve the merger. The following is the actual ballot wording:
“(T)his is to advise you that the Board of Directors will make an application under California Financial Code Section 15201(b) for approval of the merger in the event that a majority of all members of SAFE do not vote to approve the merger, in person at the meeting, or by mail-in or online ballot.”
The above ballot statement is only required if SAFE leadership plans to bypass the majority vote requirement. The intent to seek an exemption from the majority vote requirement is clear. This is very much contrary to credit union philosophy. Perhaps some ex-bankers in the movement do not have this member-first focus.
Not Enough Member Benefit
There is not enough benefit to SAFE members in this merger. They will lose their reserves built up by SAFE over 80 years. They will lose local control. They will lose SAFE’s focus on the Sacramento market and community support. Employees will lose their lengthy professional service growth tracks.
Boeing Employees Credit Union does not need this merger. I question why they are seeking this kind of expansion.
Is the SAFE member vote really a milestone... or simply a ruse?
No comments:
Post a Comment