The SAFE/BECU Mega Merger Meme: Fiduciary Doody?

                                         No Strings Attached? 

The questions continue to grow over the impartiality of the decision by the SAFE Board to cancel the charter of SAFE Credit Union; and, to hand over $4 +billion in California member-assets to Boeing Employees Credit Union of Washington State - for free!  85 years of thriving, homegrown, Sacramento-based success and ownership - up in smoke for no apparent reason.

✔ Now even the propriety of the SAFE Board has been directly challenged [link]. That concern is now added to the mounting list of prior questions. 

✅ Here's the Scorecard to date: In prior posts, it has been shown that 1) any benefits of the merger can be obtained for free by SAFE members [link], 2) the SAFE Board has voted to give away a financial institution with a fair market value between $400 to $800 million [link], 3) the current cost of operating SAFE is superior (much lower!) [link], 4) current services/rates at SAFE are equal or better [link], 5) if necessary, there are several better merger candidates in California [link], and just added 6) the "faux" Board commitments of April 21, 2026 [link].

😎 If you subscribe to our current "dog-eat-dog, anything goes" financial era, then it is hard to find fault with Boeing Employees Credit Union in this merger. They are getting a steal - literally! That's not surprising, since Boeing Employees Credit Union hired the top merger and acquisition (M&A) consultant in the U.S. - Jefferies [link] - to advise them.This merger is a "pure play" [link] for Boeing Employees Credit Union!

✔ The SAFE CEO and SAFE Board don't seem to have received equally astute M&A advice - if any - from their consultants on "this deal" - and it shows!  

✅ "Q: Why does a private company - like SAFE Credit Union - need an independent valuation?"  

"A: For private companies without publicly-traded stock, an independent valuation is the only reliable way to get an indication of value.  A value assessment can assist owners with compliance, legal issues of fiduciary duty, developing strategies and goals; and, also help you better understand what is working and what isn’t."

😎 Time to add breach of fiduciary duty as Lucky #7 to the list above?

  Has the SAFE CEO told the Board about their liability in all this? If not, go ahead and make that #8!

The SAFE/BECU Mega Merger: More "Me/Me' Than Meets The Eye?

  ...Who nose?

We sniffed around a little yesterday on the question of what actually went down this week at the SAFE Annual Meeting [link].  Clearly some believe the SAFE Board has a "leg up attitude" toward  SAFE members' rights and the survival of the Credit Union.

✅ The financial logic underlying this merger with Boeing Employees Credit Union in Washington State certainly has lots of leaks. In prior posts, it has been shown that 1) any benefits of the merger can be obtained for free by SAFE members [link], 2) the SAFE Board has voted to give away a financial institution with a fair market value between $400 to $800 million [link], 3) the current cost of operating SAFE is superior (much lower!) [link], 4) current services/rates at SAFE are equal or better [link], and 5) if necessary, there are several better merger candidates in California [link].

✔ All of Sacramento and 245,000 existing SAFE members are losing out in this "deal".

✅  From the SAFE Annual meeting link above: "With that in mind, SAFE shared with its members at its annual meeting on April 21, 2026, two meaningful commitments that will benefit Sacramento-area members and the community immediately upon completion of the combination:" 

• For members: $500,000 dedicated to First-Time Homebuyer Grants, bringing this hallmark program to the Sacramento region. This grant program provides eligible members up to $8,000 to put towards a down payment or closing cost assistance for first home purchases.
• For the community: An additional $1 million investment added to the $500,000 SAFE traditionally gives annually toward philanthropic initiatives that reflect what matters most to SAFE members and the Sacramento region community."
  

  😎 Let's "parse"* those two out!  [* To parse: to analyze a statement to discover its real implications]   

  1) The $500,000 First Time Homebuyer Grants is a commitment by the SAFE Board to give SAFE members back $500,000 of the equity which already belongs to them, which is good. It will reduce the amount of the members' money being given away by the SAFE Board to Boeing Employees Credit Union from $400+ million to $399.5+ million. 

  2) The additional $1 million philanthropic investment commits to give $1 million more of the members' equity than planned for one year. This too is good! It will reduce the amount of the members' money being given by the SAFE Board to Boeing Employees Credit Union from $400+ million to $399+ million.

   3) At face value, these two commitments, taken together, appear to reduce the giveaway of the credit union by the SAFE Board from $400+ million to $398.5 million. Creating a somewhat better - really, really bad deal!

   4) Note however, that these two new commitments are not effective until after the merger is completed. So the current net financial benefit of these SAFE Board "commitments" is zero. Suppose that the SAFE Board hoped the members wouldn't notice!

   5) Either way the SAFE membership is out $400+ million and the Sacramento community is left "hy & dry-ant".

  .   Frankly, it's lookin' more and more like a "double leg lifter" by the Board!