Hopefully the uncertainty at LGFCU - created by the SECU Board's "No formal proposal proposal" to merge - will be brief. LGFCU members are looking out from under the bus, hoping for the best. 40 years of financial success and 400,000 North Carolinians put in play with reckless abandon by a small, preening imperium on Board at SECU.
The current leadership at LGFCU has proclaimed that CIVIC FCU (a "sister" credit union of LGFCU created 5 years ago) is the "all digital, no branches" solution to the "no formal proposal proposal" dilemma created by SECU.
Take a look at how that idea is advancing. Again, if the small print is frustrating you, try this link. [Here's the link...request on line FPR for the 3/23 cycle]
CIVIC FCU is a safe and sound credit union with an interesting set of financials at March 31, 2023.
The SECU Board kicked off the uproar at LGFCU, with the "no formal proposal proposal" in 2022 . At September 30, 2022, CIVIC FCU had assets of $113.9 million; by March 31, 2023 - 6 months later - assets had shrunk by -12% to $99.8 million. Loans had declined from $103.9 million to $85.3 million, off -18%. Around 200 folks have joined the credit union each month with total membership standing at 5,609 (3/2023) at the end of 5 years of operation. LGFCU membership by comparison was 402,000 at 3/2023.
Trying to pour a 402,000 gallon tanker into a 5,609 quart jar ought to be an interesting experiment to watch.
CIVIC FCU is showing positive net earnings of $451,000 at 3/31/2023, which is great. It is a bit unusual to note that the expense line for "employee compensation and benefits" - typically the largest operating cost in a financial institution - is $0! So maybe, LGFCU really is on to something with the "all digital, no branch" solution!
😎 A credit union which can run itself - with no people!
And, since we've been looking to Mark Twain for guidance...
The more you explain it, the more I don't understand it.
- Mark Twain
The reason it shows as zero spend for employee compensation/benefits is because all of the staff there are technically LGFCU employees. They don't actually have their own staff. I suspect civic and LGFCU will officially merge into a single entity after independence (which, at this rate, will be some time in the 2030s...).
ReplyDeleteYes and it also shows how inefficient civic is. If they have 100 million in assets and made only 400,000 in the first quarter with no branch personnel expense because they don’t show it and they have no retail branch locations in the expense associated with it I feel as though they should’ve been more profitable.
DeleteLGFCU members have been shelling out money for Civic and do not even know it. More employees hired to support that all digital CU and leveraging the backs of LGFCU members to do this. All while that Board and CEO willing to take from their membership for their own agenda. Don’t be fooled by the SECU no formal proposal proposal, LGFCU exec team and board wanted independence from SECU more than they wanted to pay Hazy Jim more money annually. Both sides do not understand NC and their fields of membership.
DeleteAs well funny to see the LGFCU CEO repost on LinkedIn something about values based banking. Someone get me a bucket to lose my $#%^ in. He doesn’t know crap about that. Only values is his own. Members be damn.
Post - What does it mean to be a socially responsible bank?
"Banking based on values means being able to recognize and manage the ethical dilemmas of our time and rediscover the social functions of finance, in particular being able to allocate resources efficiently to make a sustainable economy flourish", explains Ugo Biggeri, Chairman of the Board of Directors of Banca Etica.
Learn about how GABV members are changing the financial system: https://lnkd.in/e6vwzca8