Putting Your Interests First

Terminating SDCCU's Merger Agreement with California Coast Credit Union

Latest Updates on Formerly Planned Merger

UPDATE: APRIL 30, 2026

On April 30, 2026, the San Diego Superior Court issued a detailed ruling denying Cal Coast’s request for a preliminary injunction forcing SDCCU to proceed with the merger. This is a decisive step toward putting the previously planned merger behind us.

The Court’s ruling underscores the strength of SDCCU’s position and the seriousness of Cal Coast’s compliance failures we identified during the integration planning process. The Court found that Cal Coast’s claims are unlikely to succeed and pointed to broader issues that support SDCCU’s concerns.

The Court specifically found:

Evidence of “widespread institutional compliance issues,” including failures to prevent discriminatory practices
A lack of effective compliance systems, training, and internal oversight
Leadership deficiencies, with Cal Coast management either unaware of or effectively permitting compliance failures and discriminatory practices
That regulatory approval was questionable, at best, noting concerns raised by the National Credit Union Administration
That forcing the merger to proceed would be impracticable and inappropriate under the circumstances

This development affirms that SDCCU’s decision to terminate the merger was both justified and necessary to protect its members.

Read our Press Release

Read Our Letter to Members Dated May 1 2026

PREVIOUS UPDATES

In April 2025, we entered into a merger agreement with California Coast Credit Union. Post-signing, SDCCU’s preparatory integration work revealed systemic non-compliance by California Coast Credit Union with California’s credit union regulatory framework, including alarming statements from CEO Todd Lane that substantiated SDCCU’s serious concerns about the governance, accountability and regulatory culture at California Coast Credit Union.

Despite SDCCU proposing multiple solutions that would have addressed California Coast Credit Union’s noncompliance while preserving the transaction, senior California Coast Credit Union leadership made it clear they were unwilling to meaningfully change their compliance posture.

Because of these persisting issues and our duty to protect our members, SDCCU had no responsible alternative but to inform California Coast Credit Union of its intent to terminate the deal – an action that was expressly permitted under the terms of the merger agreement, which allow termination for material breaches that were not cured.

Read Our Letter to Members Dated January 16 2026