SAFE Credit Union's Transition From Significant Entity, Prominent Player...

   Reddit And Weep!

 ✅ Making the rounds in several communities on Reddit:

"The management at SAFE has consistently emphasized the strength and strong growth of our credit union in the region. After carefully reviewing the financial and statistical data, I concur with their assessment.  However, the decision to merge, raises questions.  1. If our credit union is so strong, why are they merging? Especially with a credit union headquartered in Washington State! 2. BECU's technology is the same as SAFE's, so what specific improvements is management speaking about? 3. SAFE has contactless debit cards, BECU does not. So how is this merger going to improve the technology for members?

For over 80 years, SAFE CU has been a locally owned institution, proudly standing as a prominent player in our community. Following the merger, we will transition from being a significant entity in a smaller pond to a smaller entity in a larger BECU pond.

Our credit union has played a vital role in assisting many of us in purchasing homes, opening our first checking accounts, and supporting the Sacramento community. It is crucial to consider the impact on future generations if this legacy is not preserved.

Having examined the merger agreement and drawn from my experience as a former Credit Union CEO involved in various mergers, it is evident that the typical reasons for merging, such as financial challenges or inadequate competitiveness, do not apply to SAFE CU.

Mergers often lead to staff reductions, cost-cutting, and reviews of underperforming locations. Although BECU has committed to retaining SAFE CU employees for 18 months, layoffs and branch closures may follow. SAFE CU’s substantial assets ($4.4 billion) and equity ($420 million) will transfer to BECU. Even if current members close their accounts after the merger, the $420 million in member equity will remain with BECU.

 If you have not yet voted, I encourage you to consider the implications of what we stand to lose: local ownership of a robust credit union, a local headquarters and management, and representation in the Sacramento community. Preserving these aspects is essential.  SAFE CU Management has not scheduled a member meeting until October 27^th, the last day to vote.  This concerns me, and it should concern you.  Why don’t they want to hear from the members? 

If you are a member-owner of SAFE Credit Union, please vote as I will, against this proposed merger! And do ask others to do so as well!

Thank you for your attention."      

 Jeanine

 

  From first in class... to also ran?

The SAFE Board Sells Out Sacramento (SOS!)... And SAFE Members?

              Mind if we make off with your money? 

✅ According to the merger rules of the National Credit Union Administration: "The net worth of a credit union belongs to its members.  Payments to insiders, especially in the context of a voluntary merger where a credit union could choose to liquidate and distribute its net worth among its members, are distributions of the credit union's net worth.” 

✔ I GOT MINE!  The SAFE CEO and senior staff will pocket $14.56 million when this deal closes. Two SAFE Board will haul in $750,000 in board fees ($125,000 for 3 years each!)

Although the CEO and senior leadership team have decided to rake off @$15 million of your net worth ...

✔ THE GOOD NEWS:  $400+ MILLION IN CASH IS STILL UP FOR GRABS!!  WANT YOUR SHARE? 

The 250,000 SAFE members could collect up to $1,600 in cash each (@ $6,400 for a family of 4!). The SAFE Board and staff should look after SAFE members, instead of just themselves!  NCUA explicitly emphasizes the ownership rights of SAFE members to that $400+ million:  

 “... members' interest in the transaction extend beyond practical matters of access and service, because the merging federally-insured credit union's [SAFE's!] net worth belongs to the members."

The SAFE Board has the option of distributing that $400+ million to SAFE members - leaving the money with you in Sacramento where it belongs - and proceeding with the merger, if they still desire to do so.  

 

BECU would still make out like a bandit [link], acquiring $4 billion of SAFE's assets, branches and deposits all for free! BECU would become a $34 billion CU and remain very highly capitalized at @11% - well above the 7% well-capitalized, regulatory minimum required by NCUA. 

 

😎 Those "People Helping People" folks at BECU have no legitimate reason to pick your pocket!

 

✅ It's your money, why not keep it in your pocket and in your community? 

 

  Selling out SAFE, Selling out Sacramento... SOS, SOS!