Miles Apart: Member Objecting to Merger, CU Disagree Over What Happened at Meeting; Other Voices Weigh In

FOLSOM, Calif.–A member of SAFE Federal Credit Union who has been publicly objecting to its proposed merger with Seattle-based BECU said he was denied the opportunity to formally address the credit union’s annual meeting—but in a sharply different account, SAFE says that is not the case and he was permitted to speak before being asked to leave for not being civil.

As the CU Daily has reported, most recently here, SAFE CU member Scott Rose has been outspoken in his criticism of the proposed deal. He has published a letter to the editor in the Sacramento Bee and met with local state and congressional representatives to voice his objections to the merger, which include his contention the transaction will result in the termination of SAFE’s charter and the transfer of approximately $4.31 billion in assets — including about $345 million in member equity — to BECU without direct compensation to SAFE’s members. 

In addition, he has also met with SAFE FCU President and CEO Faye Nabhani in person on two occasions, during which there were “sharp disagreements,” as the CU Daily further reported here. 

Would Create $35-Billion Credit Union

The $4.3-billion SAFE Credit Union is asking its members to vote in favor of a merger in the $29 billion BECU. SAFE has nearly 700 employees and about 244,000 members, while BECU employs roughly 3,200 people and serves more than 1.5 million members.

A microsite related to the merger can be found here. The voting has not yet begun, and a date has also not been set, SAFE CU told the CU Daily. 

“The process will be fully transparent, and our goal is for optimal member engagement,” SAFE CU said. “The timeline is dependent on regulatory approval. Members will be able to vote digitally, through the mail, or in person at a SAFE branch.”
In the meantime, in a statement accompanying two new initiatives announced at the annual meeting (see coverage, below), SAFE credit union said. “Through the combination, it is expected that SAFE members will see a 34% increase in the amount of money returned to them when compared to other institutions through lower fees, improved interest rates and more upon completion of this combination, up from $47 million to $63 million annually.”

It said those numbers are an estimated annual member value figure based on SAFE’s 2024 financial metrics and represent the overall financial advantage members receive compared to other financial institutions. 

‘Total Nonsense’

While the figures above will be for members to consider when the voting starts, for now, there is strong disagreement over what occurred at the annual meeting on April 21 at SAFE CU’s headquarters in Folsom, Calif.

Rose said he attended the annual meeting, which was as followed by an informal town hall where members could speak on any issue. Rose said he had been informed by the CEO’s executive assistant he would be able to speak, along with others.

The annual meeting included the standard presentations, such as the financials, before breaking.

“For 20 minutes I listened to (the chairman) extol the virtues of the BECU takeover, nearly all of which was total nonsense,” Rose said in an email to the CU Daily. “After a short break, I submitted an index card indicating my intent to speak. He then allowed a handful of attendees to speak, including my wife. But he did not call on me before he abruptly declared the meeting adjourned, completely ignoring me.”

Rose acknowledged that at that point he “loudly interrupted,” and he described himself as “furious,” saying he “called out his attempt to ignore me. It was an unpleasant and unexpected twist in their scripted narrative, and I quickly exited after speaking my mind,” Rose said.

Not What Happened

But a source with SAFE CU offered a different version of events. The source told the CU Daily the town hall was in informal event and while filling out a comment card was an option, it was not required to speak. SAFE CU said the town hall lasted approximately 90 minutes.

The source further said there had been some “ambiguity” over whether Rose would speak, but the issue was resolved and he addressed the board for more than five minutes and did not read from a prepared statement. 

But Rose strongly disputes that account and said there were witnesses present who can confirm his version of events, including that he spoke for no more than two minutes. He said Chairman Rick Blumenfeld “deliberately adjourned” the meeting knowing he was waiting to speak, and that he interrupted the chairman as he was inviting attendees to enjoy the cookies that were on hand. Rose said his wife will also vouch for his account of what transpired.

After the confrontation, the source said security was called to escort Rose from the building.

“SAFE Credit Union values open dialogue and transparency. During the town hall, members who expressed interest in speaking were provided with an opportunity to share their views on the combination and other credit union business,” SAFE CU said in a statement to the CU Daily. “When a disruption occurred, meeting guidelines were applied to ensure productive conversations. SAFE remains committed to respectful engagement and ongoing communication with our members.”

Prepared Remarks Not Shared

Rose shared with the CU Daily the prepared comments he had planned to make at the meeting. The comments included that he is a 25-year SAFE member whose “sole interest today is to preserve SAFE Credit Union for future generations. I have no hidden agenda and no external financial interests.”

Other Points That Were to be Made

Among the other comments Rose had intended to make:

• He contends the termination of SAFE’s 86-year-old charter is a “betrayal of our community. 
• He said the “so-called benefits” of this transaction…pale in comparison to the irreparable losses that our community will endure if this deal goes through.”
• He questions “How can an organization seven times the size of SAFE possibly benefit our members and our communities?” 
• Rose planned to say that during his two meetings with Nabhani it “became evident to me that SAFE leadership not only initiated and negotiated this merger in secret, but deliberately excluded any member participation,” and that there was “never any attempt to engage the membership,” who didn’t learn of the plan until being “surprised” by the announcement in November of 2025.
• Rose said he further planned to comment that the SAFE CU’s board’s motivation remains a mystery and that it does not represent and cannot speak for the members. He further planned to say that only three of the current directors were actual SAFE members when they were nominated and elected to the board, and that nine directors were not SAFE members in good standing, as required by SAFE bylaws. “This fraudulent pattern of election manipulation has been occurring for more than a decade, and the current plan to terminate the SAFE Credit Union charter is a direct consequence of this corruption,” Rose had intended to tell the board. 
• Rose also planned to tell the meeting that BECU CEO Beverly Anderson gained all of her financial experience as a commercial bank executive at Wells Fargo and American Express and does not have an understanding of “cooperative credit union philosophy. “

“We have many huge commercial financial institutions, and these are readily available to anyone who wants them,” Rose intended to say. “But those of us who truly support SAFE Credit Union want a local institution with Sacramento roots. We don’t need the likes of BECU invading our home turf and shutting down our credit union.”

Other Views on the Merger

Meanwhile, the BECU/SAFE merger continues to draw scrutiny and comment from within credit union circles.

Chip Filson, the former director of examination and insurance with NCUA and co-founder of Callahan & Associates, wrote on his blog about what he called BECU’s “high-cost culture “ and “an operating expense to asset ratio of 3.33%, much higher than the large credit unions in California.”

Filson also wrote that the nine BECU directors were paid an average compensation of $118,000 in 2024. with the chair receiving $154,000. Filson noted that in California, state regulation prohibits director compensation.

Jim Blaine Weighs In

In addition, Jim Blaine, the former CEO of State Employees Credit Union in North Carolina, who authors a popular blog that can be found here, wrote, “Credit Union mergers have become the most controversial topic within the credit union movement – signaling the end of an era, the end of an idea? The SAFE/BECU merger –surprise announced without SAFE member input in November 2025 –has become the poster child for that debate. 

“The SAFE CEO and Board have refused to release financial details of the proposed agreement to the SAFE members – the owners and shareholders of the credit union!” Blaine continued. “SAFE member-owners had never called for the merger, nor has any member group advocated that it be pursued. Who actually benefits from this merger?”

Allegations Board Hasn’t Fulfilled Fiduciary Duties

Citing some of the points Rose and others have made, Blaine further stated:

• The termination of SAFE’s charter will completely eliminate oversight by California’s Department of Financial Protection and Innovation (DFPI), and said consumer protection under the BECU charter will become the responsibility of the Washington State Department of Financial Institutions (DFI). 
• “The gifting of all SAFE assets, all future control, and all future earnings to BECU based solely on vague future promises is nothing less than a legally sanctioned theft of SAFE member resources,” Blaine stated. “The true market value of SAFE Credit Union is $600 million to $800 million.  SAFE members-owners will receive nothing from this transaction. All $4.3 billion in SAFE Credit Union member-owner assets will be handed over to BECU. All $345 million in member-owner equity will be taken from member-owners without compensation.”
• Blaine said for SAFE members the merger will lead to the loss of “critical competitive advantage and local owner governance,” and stated that SAFE has established a “dominant regional market position that cannot be easily replicated. When SAFE becomes a branch operation for BECU, this will be lost.” 
• Blaine also alleged there has been a breach of fiduciary duty by the SAFE board, saying they “manipulated (the) democratic voting process,” “deliberated in secrecy,” and did not act in the best interests of the member-owners.”

SAFE Announces Two New Commitments

In a separate statement, the two credit unions said the “combination between BECU and SAFE Credit Union is proceeding smoothly and according to plan. Together, we couldn’t be more excited to create a combined credit union that will deliver enhanced benefits for our members, communities and employees.”

At the annual meeting, SAFE Credit Union made two announcements:

• For members, it said it will be providing $500,000 dedicated to First-Time Homebuyer Grants. The grant program provides eligible members up to $8,000 to put towards a down payment or closing cost assistance for first home purchases, it said.
• For the community, SAFE said an additional $1 million investment has been 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. “This aligns with BECU’s longstanding commitment of approximately $6 per member per year invested back into the community,” the credit unions said. 

“These commitments are just the beginning of how we our shared values will be demonstrated as one unified credit union upon close of the combination, and we are excited to drive the positive impact of enhanced benefits and increased support for our collective members and communities,” the credit unions said in a statement. “As a member-owned financial cooperative, every decision we make starts and ends with what’s best for our members.