Local Focus and Control Are at Stake
by Stan Hollen
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 merger with other California credit unions. SAFE is large enough that economy of scale cannot be a reason to seek merger into a larger credit union.
Bypassing Legal Requirement
SAFE was always looked to as a leading credit union in Sacramento and California. This will no longer be the case.
The attempt to bypass the legal requirement that a majority of all members must vote to approve the merger is highly suspicious. Why is this occurring? It 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 SAFE built up over 80 years. They will lose local control. They will lose SAFE’s focus on the Sacramento market and community support. Employees lose their long service professional growth tracks. BECU does not need this merger. I question why they seek this kind of expansion.
About the author:
Stan Hollen served on the board of a small Illinois credit union at age 19 when he was the computer programmer for Joan of Arc Company. He was Vice President at CEFCU (Caterpillar, now Citizens Equity First Credit Union) Peoria ,IL. for 9 years. He joined Deloitte,Haskins & Sells where her worked for two years in their Chicago office. (editor’s note: One of Stan’s projects was with the Illinois Department of Financial Institutions Credit Union Division. He helped design and automated the 5300 call report data in a spread sheet format with peer comparisons, called the Financial Performance Report. An application later adopted by NCUA when Ed Callahan was Chairman.)
He became CEO of The Golden 1 Credit Union in Sacramento and guided its statewide expansion from 1984 through 2001. Stan then became CEO of Liberty Enterprises in St. Paul. Liberty was a major supplier of checks and data services to credit unions.
He served as the president and CEO of CO-OP Financial Services , Rancho Cucamonga, CA for 11 years, from 2005 until his retirement in mid-2016 . Under his leadership, the organization underwent massive modernization and growth, evolving from primarily an ATM and shared branch network into a comprehensive financial, technology, and marketing services provider.
Within the credit union movement, 16 of his former employees went on to become credit union CEOs themselves He is in the CUES Hall of Fame and received the Herb Wegner award for Outstanding Individual Achievement by the National Credit Union Foundation.
He can be reached at Hollenstan@gmail.com.
Another CEO’s assessment
For the opinion of John Tippets, the former CEO of American Airlines FCU click here