Hope the above series of three graphics comes across on your screen in a logical fashion so you can see the transition (">>>") which is underway as LGFCU moves toward "Independence Day" in June, 2025. "LGFCU" has disappeared and "CIVIC" has arrived.
Wandered onto the CIVIC playing field over the last few posts while looking at the issue of SECU introducing business/commercial services. This was one of the six original questions in the 2022 member-approved Annual Meeting resolution - as yet unanswered by the SECU Board. LGFCU was of course also one of the questions - the specious "no formal proposal proposal" SECU Board chair response. That question , however as you see, has been taken care of by the folks at LGFCU!
First, a quick story. Offering business/commercial services is a question of long-standing at SECU. Prior SECU boards have thoroughly reviewed the pros/cons and chosen not to proceed. Around 2014 the leadership at LGFCU had a unique idea about helping N.C. fire departments with fire truck loans and launched this commercial lending service. LGFCU also proceeded to acquire business/commercial software and to proceed with the formation of CIVIC, which would be a separate credit union focused on business service. With an open membership, CIVIC could serve a broad ranged membership - ready for this!! - including those who were SECU members and wanted a business account. Will leave you to contemplate all that.
But, as they say, that's not what we're here to talk about. We're here to consider the problems which arise when you combine a consumer-purposed credit union with business-oriented banking. Please note that the basic "logo" for CIVIC above no longer indicates it is a credit union, the ">>>" transition banner confirms the move away from "FCU" ("federal credit union") and the "Go to" banners now feature banking. Are pictures worth a thousand words?
What really struck me about all this arose in comparing member loan rates at CIVIC vs. SECU [see 1/29 post here]. What was more important, and perhaps bests defines the problem of combining a consumer-focused credit union with business/commercial services, was a look at CIVIC's own internal savings and loan rates:
✅ CIVIC induvidual member money market savings rate: 2.01%
✅ The money market savings rate for business: 2.76%
And from the NCUA data in the 1/29 post [see 1/29 post here] commercial loans were receiving the superior rates @ 3.25% (don't rely on this as current practice - check 2025 rates for yourself!).
😎 Should business/commercial interests be favored in this fashion over individual members if SECU ventures forth? Why would that be? Do you see the potential problem?
Well, at least CIVIC has been frank in telling its members "where to go"...
