SECU/LGFCU Merger Proposal - Here's What The Annual Meeting Resolution Said And Asked.

Verbatim Excerpt From The 2022 SECU Annual Meeting Resolution:  (overwhelmingly approved by the SECU members)

 

"2) Proposal to Merge Local Government FCU – SECU made an unsolicited offer to merge with Local Government Federal Credit Union. It is not clear why. LGFCU has been a strong partner with SECU for over 40 years in seeking to extend credit union services to N.C. local government employees, particularly in rural, economically strained counties. The offer to merge was rejected by the LGFCU Board of Directors and appears to have created such a climate of mistrust that LGFCU will discontinue working with SECU in the future.[see note 1 below]

If this separation occurs, local government employees – our fire fighters, policemen, first responders included – look to lose access to the SECU branch system, which they helped create. As an aside, the offer to merge if accepted would have been illegal, based on a 1981 ruling by the NC Supreme Court. [see note 2 below]

The fate of three other partner credit unions – N.C. Press Association CU (for North Carolina newspaper employees), Greater Kinston CU (the last existing N.C. African-American controlled credit union) and Latino CU (focused on North Carolinians of Hispanic backgrounds) – is yet to be determined.

Q: How would this merger have been beneficial to the current member-owners of SECU?"

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 Notes:  Subsequent to the SECU Annual Meeting :

1. The LGFCU Board voted to discontinue working with SECU beginning in March, 2024.
2. The LGFCU Board voted to no longer provide branch service to fire fighters, policemen, first responders, and all other LGFCU members. 

 

Here's what the new CEO LGFCU Dwayne Naylor said about the 2022 SECU Member Resolution, at the SECU Advisory Board Fireside Chat Meetings in November 2022. Check it out [link on NCSECU You Tube, Fireside Event -Full - 25:26]:

 

Mr. Naylor: Sorry I was not at the SECU Annual Meeting [25:26]..."because before the Resolution passed, I would have argued to have removed #2 because there was no factual evidence of that being true. I'm trying to stay away from the word lie." 

 

...Mr. Naylor is going to be given an opportunity very shortly to explain his interpretation of "lying" and what actually did occur with the "informal" [according to Chris Ayers] proposal to merge ... it should be interesting. Stay tuned!