... follow the error.
If you've followed the fever-pitch squabbling in the comments recently, you'll find two recurring themes: collections and centralization/specialization.
Changes in these two perspectives - since "The Big Snafu"(BS) began at the end of 2021 - have been costly to SECU member-owners - very costly! Collection centralization has increased loan delinquency and loan charge offs (losses) by tens of millions of dollars. The centralization and specialization of service delivery is worse, causing operating expenses to soar dramatically - up by over +$225 million annually over historical levels. You can check out the SECU Board's own performance scorecard (as reported and as adjusted) at the January 31, 2024 post [link].
You might like to see the official historical trends as reported by the National Credit Union Administration (NCUA) in these critical cost areas - operating costs and charge offs - which are real, hard dollar costs to members. Mike Lord was the CEO of SECU from 2016/2021 - note the conservative, competent and consistent record of stewardship - until "The Big Snafu"(BS) got underway in earnest in 2022:
Year-end Op. Expense Charge Offs
2023 2.42% .62%
2022 2.08% .35%
2021 1.70% .20%
2020 1.87% .30%
2019 1.89% .43%
2018 1.84% .45%
2017 1.77% .40%
2016 1.77% .33%
Small percentage changes might mislead you into thinking: "ain't that significant", but remember when you're dealing with billions of dollars - everything is big, especially snafus! For example, lets compare the change in operating costs from 2019 (1.89%) to 2023 (2.42%) - an increase of + .0053%. Well, @ $50 billion in assets x .0053%= an increase in annual operating costs of +$265 million! If loan losses have increased from 2018 (.45%) to .62% in 2023, that +.17% increase represents over +$56 million in additional loan losses in just one year - in the midst of a strong, positive economy!
😎 Change is great...
... BS is expensive!
