SECU is required to report quarterly financial data to the National Credit Union Administration (NCUA), an agency of the federal government. One of the main benefits of federal reporting is that "folks", who have a tendency to spin, dissimulate, and prevaricate, have difficulty fudging the facts once reported.
We discussed yesterday (5/14/2023 post) the -5% decline in assets - to @ $50 billion - over the last year at SECU. The credit union seems to be headed toward its second consecutive year in reverse gear - despite the SECU Board asset growth target of +8%.
Lets take a look at how well the SECU Board is controlling the cost of operating your credit union in the midst of this "turnaround". If growth and expansion have declined at SECU, what would you expect to have happened to SECU operating costs. You probably guessed wrong, because you're not thinking like an SECU Board member! Guess again!
Here's what the SECU Board reported about operating costs in the 3/31/2023 financials:
For most members the percentage (%) figures above won't have much meaning. Are they good? Are they bad? What do those percentages really mean? This is yet another example of the "half-truth disclosure" format that the SECU Board has been using - remember those gobbledygook "Fireside Chats"! "Hey, we told you (sorta), it's not our problem, if you don't understand!"
What you, as a member-owner of SECU, don't understand; and, what the SECU Board is not leveling with you on, is financially penalizing you - and every member.
How much? A WHOLE LOT - @ $290 million a year!
Here's how you calculate it - remember using the SECU Board's own numbers above. Mentioned yesterday that when CEO Mike Lord left the helm in September, 2021 (just 18 months ago!), he and a very fine, capable "legacy" staff were running an @ $50 billion asset SECU with an "expense-to-asset ratio" of 1.70% (and had been doing so for years). So, lets translate that into real dollars ($$$) by multiplying the "%" (1.70%) x the assets (@ $50 billion). If you do that arithmetic, the answer is $840 million.
In other words, in the year CEO Lord left, the yearly operational cost of operating SECU was $840 million. Yes, it's a big operation! (Hopefully the reason you didn't know that is SECU used to not act like it was too big for it's britches"!)
That's $290 million a year out of your pocket!
The SECU Board has a fiduciary duty to the member-owners of the credit union. Does their performance in controlling costs meet that standard - or your expectations?
.... $290 million is a lot of quackers.
That's a lot of sunglasses.
ReplyDeleteGreat job, "stewards" of the member's money.
I wonder how much that confidential contract with NCR Corporation cost or what about Cornerstone? Don't forget the short lived tv commerical, or our highly paid marketers! Y'all think these new EVP's came to SECU for a pay cut?
ReplyDeleteTV ads are running
DeleteDamn, I've only seen it twice but then again I don't watch much tv.
DeleteYou forgot flying in out of state executives and building gymnasiums
DeleteThank you so much for the breakdown. This is an utter outrage and we members should not stand for this. They're burning through our hard earned money and all we get back are false promises of a better experience? If anything the experiences are worse since the change.
ReplyDeleteand the rates are pretty crummy too!
DeleteWell said, keep sharing this website and any info. Members need to complain.
DeleteMembers need to email their NC State senator..
Deletemembers need to email administrator of CU these guys are fiscally irresponsible
DeleteMillions of dollars being spent of our money and we are getting lower deposit rates, higher loan rates and a decline in services offered. This is not my SECU I have trusted for so many years. These people are wanting to turn SECU into a bank, time for a new Board and management in Raleigh. SECU has always made a difference in my financial life and I want it to be here to make that same difference in my children's lives. Don't let these outsiders continue their take over of our credit union. Hayes and Ayers need to be the first out the door.
DeleteApparently, SECU has to spend a ton of the members' money to get its groove back.
ReplyDeletePrior to Gym’s arrival, everyone from the CEO down flew coach when traveling with no company paid upgrades. Now members of our elite executive team AND THE BOARD FLY PAID FIRST CLASS while the hard working members of OUR credit union foot the bill!
ReplyDeleteDon't forget the important weekend meeting in Duck, NC at a resort! Executive "team" already being paid the big bucks but they also get a weekend trip to Duck, NC at the expense of the members. I forgot executive meeting can't happen at work in a conference room. Must be the new culture direction. Lifestyle of the rich and famous.
Deleteand they fly in employees who live out of state for onsite meetings
ReplyDeleteEmployees who live out of state?? What are they doing? Preparing the way for the new out of state focus?
DeleteWhat is Mr. Hayes email? I am a member and I have been trying to get in touch with him for over 6 months and no luck. Called in and they always send me to a supervisor. I want to talk to the horses mouth and understand why he is ruining a great to bank. My family and I have been using the credit union for generations. This is just unacceptable what is happening. I’ve never seen such an outrage over a CEO before.
DeleteThe reason you can't get his email, he only has an outbox
DeleteUnlike previous CEOs Mr. Haze considers it beneath him to speak to a member (unless they are giving him another made-up award).
DeleteI'm not kidding, you won't get to him.
Charge Offs up 86.5% on the latest NCUA report! Provision for Loan Losses up 444%! Delinquency down 48.4%. SECU is masking delinquency with Charge Offs - a pretty radical move (that's a joke that's not really funny) and speaks to the complete failure of centralizing Collections.
DeleteBranches were incredibly good at collecting because they knew their communities and had relationships with their members. But that was before Haze and the "smart folks" decided branch staff were second class employees incapable of collecting. Another huge mis-step....
The Members Deserve Better
Take note. When delinquencies were removed from the branch and placed in the collections dept that department on had around 40 persons working all the delinq loans. That's mortgages, credit cards, personal loans and vehicle loans and only 40 people working them. A failure from the start. I do wonder what genius thought this was a great idea....
DeleteHalf those 40 have left, the other half is trying to leave
DeleteLet's not forget the three months that this collections group forgot to collect....
DeleteI wouldn't say they forgot. These 40 people were overwhelmed. Just think, you are to collect all day. M-F 8:30/5:30 on CC, Personal loans, Salo, Mortgages and HELOC for the ENTIRE organization. That is impossible. The collections group are the victims. Not given the resources to do their job. I balme them for nothing.
DeleteAgreed! They were given a tall task! We cannot put down certain departments. We are all in this together. Seriously though…40 people collecting loans for the entire credit union. Absurd isn’t the word
DeleteNot a single “PENNY” earned in these 2 years but there’s a lot of secrecy - confidential contracts, board meeting minutes, proprietary financial data, first class flights, private jet charters, etc. Where does all this outrage, arrogance, self-indulgence and self-entitlement come from? Member’s hard earned sweat & blood and “LEGACY” employees hard work.
ReplyDeleteImagine what would be happening if only Hazey had made a profit of a few “thousand”, leave alone “a” million or “a” billion with his Hazey vision……
Running out of time to fulfill that promised “assets over $70 billion…..”, aren’t we Gymmy?
First class flights, private jets….this is EH efforts to make SECU a certified best place to work…for executives, of course! And be careful saying too much about legacy employees….nothing makes “them” madder!….fist hitting the table mad! All of us that witnessed that needs to speak up.
DeleteOoooooh. Do tell!
DeleteI want to know more about this!
DeleteNow what kind of culture is that when an Exec gets fist hitting table mad? Most everyone knows that culture story- all talk - no substance. Right in line behind Haze in seeking those meaningless awards. Sad.
DeleteWhich Executive punched the table?
DeleteSECU grew to a… what was it $52 Billion or $54 Billion dollar credit union over it’s 85 year history without a “Marketing” department. The only form of marketing that existed was WOM. Now we have to have a Marketing Department that in March alone spent $1.1 Million and the total for the fiscal year is $2.1 Million. I just don’t understand what has happened to our Credit Union!
ReplyDeleteThey're paying for nonsense and we have great returns to show for it: $0.
DeleteWell one thing is for sure, all the money that has been lost isn't because they are paying employees more....at least NOT us "legacy" employees they have been telling for 6 months that they are reviewing compensation...glad the ones running this place get max pto and big bucks to sink this ship! smh....I am disgusted with this place and the crooks running it!
ReplyDeleteMax PTO? They did the big lip service survey and though 51% voted to retain the existing benefits, they didn’t give a hoot and ran roughshod over everyone’s opinions. Why even bother with the surveys? To dot the i’s and cross the t’s and say we did our due diligence. Minor majority is still a majority. If not, can we replace this Hazey Gym with the next runner up in the selection process for his position? He won by a single “1” vote. That’s also a minor majority and we can follow the same process of elimination that’s in effect now.
DeleteThe runner up that’s sitting to his right? That is who you want? I will choose the option of those who did not get a face to face with the Board!
DeleteThat survey was simply just their way of changing the benefits to what they want, and pretending like it was voted by the people
DeleteHis right hand was the runner up? Didn't know that. But how can one know who were in the pool when it's all smoke and mirrors gimmick?
DeleteLet's break that $290 million figure down a little further. $290 million ÷ 2.7 million members = roughly $100 for EVERY member in the state. Man, woman and child. I have a family of six who are all members. A wife and four children. The way I see it, I've lost $600 to SECU in the past 12 months. For what? Higher loan rates? Lower deposit rates? Elimination of tax prep services? Slower service in the branch due to a reduction in branch staff? If you're a member and you're reading this, you've been hoodwinked just like me. I really don't want to pay them $600 (or more) next year. Time for a change.
ReplyDeleteWhen lies and deception come in, transparency goes out the door and everything is smoke and mirrors. Proved again with the misleading "proprietary" financial statement.
ReplyDeleteNow we know why the hazey sunglass email was sent out.....
DeleteEmployees aren’t drinking the Kool-Aid and they’re certainly not gonna SELL it to the members…. I’m serving sweet iced tea and the TRUTH to my members!
ReplyDeleteSome are. Check out LinkedIn. It's so fake.
Delete