Are the SAFE Board and CEO fissilingual?
✅ Been looking at the question of: "Why has the leadership of SAFE voted to give away a thriving $4 billion local credit union to out-of-state interests (BECU)? - at an immeasurable loss to the Sacramento community and at a very measurable cost of over $400+ million to 245,000 SAFE member-owners.
✔ Does the SAFE Board and CEO know what they are doing? THEY SHOULD!!!
😎 Here's why. Take a look at these three excerpts from SAFE's most recent audited financials:
"SAFE CREDIT UNION
NOTES TO FINANCIAL STATEMENTS
December 31, 2025"
1) "NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS:"
"Goodwill and Other Intangible Assets: Identifiable assets, liabilities, and contingent liabilities in entities acquired are measured at fair value at the date of acquisition. Identifiable intangible assets are recognized if they can be separated or arise from a contractual right and the fair value can be reliably measured. Any excess of the cost of business combination over the fair value of the acquired identifiable assets, liabilities,and contingent liabilities is recognized as goodwill. "
✔ Not to make you a CPA or anything like that, but the layman's translation is: if a credit union acquires any business - including another credit union - at a cost more (or less!) than fair value, then the difference in value is shown on the CUs books as "goodwill". [if you want to check out SAFE's complete financials - here's the link]
😎 So what happens if a credit union acquires another credit union at less than "fair value"? **
2) "NOTE 6 - GOODWILL AND OTHER INTANGIBLE ASSETS:"
The [SAFE!] Credit Union completed a merger transaction with American River HealthPro Credit Union that became effective on July 1, 2009. This merger was accounted for as a purchase business combination. As the purpose of this merger was to achieve growth and economies of scale among these mutual enterprises, no payment considerations were involved, contingent or otherwise. The goodwill of $13,282,000 associated with this merger..."
😎 So, you see SAFE CU has previously merged with another CU in 2009 and booked a goodwill gain of $13.2 million! The $13.2 million "shares" SAFE CU "acquired", "as a purchase" was the remaining member equity value of the old HealthPro CU. SAFE CU "purchased" HealthPro for $13.2 million less than its "fair value". To this day, that goodwill gain, that gift of $13.2 million still shows on SAFE's books!! [So, the SAFE Board knows how "this little game" works - or should!]
3) "NOTE 18 - PENDING MERGER (UNAUDITED):" [to be completed in 2027]
"Under the terms of the agreement, upon completion of the merger BECU will assume all assets, liabilities, and member shares of the [SAFE!] Credit Union. "
😎 If this mega-me merger between SAFE/BECU is permitted to occur, BECU will post a goodwill gain of somewhere between +$400 to +$800 million from the purchase - having acquired SAFE CU from its member-owners as a gift - far, far below "fair value". [link]
