Is the Financial Analyses The SECU Board Is Receiving Part Fiction? That Might Explain A Few Things ...

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.. refer to the comments in the 6/27/2024 post [here's the link], if you want to see how this "Ed story" unfolds.

😎 Well, the "2:13pm/3:16pm commenter" is back! Still squirming frantically - trying to avoid "the light".

❇"some follow up to @6:27."
"1) Yes, SECU grew. Strongly? Compared to what? It's been shown not to have grown as fast as the local market."

As Cool Hand Luke was told: "What we have here is a failure to communicate."

The core problem may be that our "2:13/3:16 commenter" is simply of the classic persona-types best described by the axiom: "Can't see the forest for the trees."

So, "2:13/3:16 commenter": "Compared to what?" The bigger picture? SECU, as you know, is the second largest CU in the US at @ $50 billion in assets - give or take a $5 billion "prop up" loan from the Fed. (NavyFed in Virginia is by far the largest).

If CU size and growth are related to population, etc as our commenter opines, then lets fact-check that statement with a little broader and more fairly balanced vision.

North Carolina is the 9th most populous state in the US and at $50 billion+-, SECU is by far the largest CU in the State.

 ✅ Here's a list of the 10 most populous states in the US with the asset size of the largest CU in each state:

1. California - $29 billion
2. Texas - $18 billion
3. Florida - $16 billion
4. New York - $12 billion
5. Pennsylvania - $8 billion
6. Illinois - $19 billion
7. Ohio - $8 billion
8. Georgia - $10 billion
9. North Carolina - $50 billion
10. Michigan - $12 billion

... why is SECU so far ahead in terms of size, if population is the key? (In case you're wondering, SC - $5 billion, Tn - $8 billion). Clearly something unique has been happening in North Carolina! 

✅  Something doesn't "add up", does it?  And that's the concern about the escalating lending losses and delinquency at SECU. Those soaring costs "are adding up" at the expense of the SECU membership.

Look closely, isn't SECU a unicorn?

About That Soaring Delinquency Rate? According To SECU: "Everybody's Doing It"!

  ... through the roof!

Many SECU members have expressed their strong opposition to the discriminatory overcharging of risk-based lending (RBL), which is highly correlated to the race, age and gender of a member . The wrong members are being unfairly overcharged for the wrong reasons, which is detrimental to the financial health of the members -  and ultimately catastrophic for the reputation of the Credit Union. 

The SECU Board - and particularly the Executive Leadership Team (ELT) - have pooh-poohed those concerns and trumpeted the great improvements in efficiency and effectiveness that "tier-based pricing" (TBP)  has brought to SECU lending! 

When members point out that the financial results - in terms of loan losses and loan delinquency -  don't support those claims, the ELT becomes a bit miffed and has pouted authoritatively that those poor results are "industry standard". "Everybody" is suffering increased losses and delinquency due to rising rates, the Fed, mounting inflation, a weak N.C. economy, climate change, 2024 being a "leap year", the phases of the moon, and global warming, i.e. - "It's not our fault!"

The surge in loan losses and delinquency under "RBL/TBP" is costing the SECU membership literally hundreds of millions of dollars each year now.

✅ Let's take a look at how the 10 largest credit unions in North Carolina are faring with loan delinquency under exactly the same economic circumstances as SECU! 

 (Name of CU and 60-day delinquency rate at March 31, 2024)

1. SECU  (Raleigh)                2.07%
   
2. Truliant  (W-S)                     .95%
   
3. Coastal  (Raleigh)                .56%
   
4. Local Gov't  (Raleigh)        2.67%*
   
5. Allegacy   (W-S)                  .44%
   
6. Self-Help  (Durham)           . 95%
   
7. Skyla  (Charlotte)                .66%
   
8. Latino  (Durham)               1.10%
   
9. Marine  (Jacksonville)          .92%
   
10. Ft. Liberty  (Fayetteville)     .62%

✅ You'll note that all the other large credit unions in North Carolina (except Local Government*) are managing their loans with a delinquency rate generally less than one half the rate of SECU - regardless of the Fed, climate change, or the phase of the moon.

✅ You might also like to note the SECU 60-day delinquency rate was 1.16% at March 31, 2019 vs. 2.07% in 2024 - granted 2019 wasn't a leap year!

This is not a minor matter for SECU, regardless of the pouting!

* SECU makes and "collects" most Local Gov't loans - the 2.67% ratio may be one reason why LGFCU is seeking "independence"!