✅ Baseline. Prior to September, 2021, SECU had an uninterrupted 85-year record of growth in assets and membership, un-besmirched by sanction or scandal.
🔺No one should be surprised that the "New/New" financial trends at SECU continued in May:
✔ Total assets - continued to decline dropping below the $50 billion mark to $49.88 billion - off $589 million in May alone.
✔ Total deposits - same story, off - $500+ million from 4/30/2023.
✔ Total loans - are growing, up $600+ million as the SECU Board continues to pursue a policy of overcharging 50+% of members, through the highly discriminatory risk-based lending (RBL) policy.
🔺The greater concerns remain in the substantial failure of SECU to meet Board-approved budgetary targets, specifically in the areas of operating costs and delinquency/chargeoff controls.
✔ SECU will end the 2023 fiscal year (Tomorrow! - 6/30) @ 15% over the SECU Board's budget target ("2% of assets") which equals @ $75 million over the mark. Of greater significance is that actual 2023 operating costs of @ 2.30% of assets are 24% higher than SECU's traditional operating cost range of 1.86% of assets (see SECU Board approved scorecard below). Folks that 24% increase in the operating costs of SECU is costing you $220 million more every year. Are you seeing that much increase in benefits and service quality from your credit union?
✔ You already know the story on delinquency and charge-offs, which have soared in an improving N.C. economy. The problem was not "The Fed" or some other concocted excuse to avoid the admission of mismanagement. Suffice it to say that charge-off levels for 2023 will be at least twice (which is tens of millions of dollars) the levels experienced since the "New/New" started weaving its magic less than 24 months ago.
✅ To refresh your memory, here is the SECU Board's own "performance scorecard" from March, 2023. Delinquency/charge-off losses have soared and SECU operating costs ("expenses to assets") remain highly elevated over historical operating norms.
...while the SECU Board remains deathly silent, the numbers speak for themselves.
"This Board" is now failing by their own standards. Glad they caught up. They have been failing by members standards for a long time now.
ReplyDeleteWanted to share some advice with the board since they were so caught off guard before...
ReplyDeleteThe Fed will raise rates again. They told us.
now is this the same Fed as the "Inside Job" fiasco? asking for a friend ...
DeleteThe Fed isn’t SECU or memberships friendly. Nor the entire country for that matter. My belief is the FED, NUCA, and our lovely board want SECU to sink.
DeleteAbolish the federal reserve
DeleteCommercial real estate is NOT looking good either. Hey this board and Leigh Brady, you reading this?? so, to interpret for you since y'all are a bit slow. Do not buy commercial real estate mortgage backed securities with our money from your enemy Jim Hayes at ALM Investments.
DeleteDare I say, most members have no idea about what is happening at SECU. I shared this information with family members and told them to begin reading the blog daily in order to know what's happening. First thing they wanted to know is "do I need to take my money out of SECU?" Good question, and one I cannot answer. Only thing I can say is that there are other financial institutions out there that have better rates. Better educate yourself on what is happening and how it will affect you financially.
ReplyDeleteIt's a tragedy. Lots of talk but can't see that there is any action!!
We are called to be the light for these members ...
Deleteso let it shine! The darkness will be revealed ...
SECU is still reeling from the PIN # transaction and Cash App fiasco from Monday. Leadership's failure to manage the situation will cost SECU members tens of millions in direct losses from negative accounts, along with additional costs from overtime pay, employee fatigue, and a tarnished reputation. Still haven't heard from leadership on exactly what happened, how it can be prevented in the future, and how we can better manage a crisis. This is real $ losses with no directive on how we can recoup these lost funds. This situation seems like a big enough issue to warrant a Webex from leadership to discuss these issues.
ReplyDeleteDo you think leadership understands what happened?
DeleteHurricane season is here, cross your fingers nothing happens (I think that's the point we are at now)
DeleteMemo to Board:
Delete"You can't build a reputation on what you are going to do."
Henry Ford
Just wait until we see all the charge offs from off the negative accounts due to the debit card issues on Monday
ReplyDeleteThis is all so disheartening. Is contacting the state credit union administrator an option? Or the state attorney general? It seems to be abandonment of fiduciary duty, but I am no lawyer. would the membership have to file a class action lawsuit, or is this not a regulatory matter that could be addresses through those two options? sure seems like enough folks want to pursue reigning in this rogue board. Or is it easy to be anonymous on a blog? Is this just 20 people talking to themselves? How do we get organized and go forward to remove this board and replace it with honorable, honest members?
ReplyDeleteIt's well read. I believe the stats were that in the first 60 days the blog had 250,000 hits and it has grown since then significantly. Very real problems at SECU that have members and employees very concerned. Many posts are anonymous because employees are fearful of losing their jobs for speaking out.
DeleteWe need members on the board who act for the community good, not for the few on this board and top administration. There are not checks on this board's control unless it is the state regulatory system. NCUA appears to be Hayes' BFF, so no help will come from there. How to go about it so the membership is heard? Jim Blaine and Mike Lord can not do this alone. does the membership know? Guess with the technical unforced errors this board is making, with Leigh and Hayes' assistance, awareness is rising. it needs to be a tsunami to sweep this board out of power. Looks like they are holding on VERY tightly. so, What do we do? those of us who are aware?
DeleteAt end of month 4, 660,000+ hits and rising. Probably a few more than 20 folks just babbling to themselves...
DeleteMember Awareness is key to making sure every vote in October is AGAINST these 3 directors up for re-election. This Board and this Administration have already changed election procedures in the midst of all this chaos in an effort to hold these seats. Unquestionably a very dirty move on This Board's part, but not surprising with all else they have done. They are unfortunately in control of the nomination process --but that still does not give them the win.
DeleteWhat will give them the win is if folks continue to sit back with an attitude of I am staying out of this, someone else can fight this battle.
Everyone who is against where this Board and Admin have taken our credit union needs to step up now. Several have mentioned SEANC and it does appear they are not in favor of the direction this Board has taken SECU, but it is unfair to expect them to make a difference alone. Advisory Board Members must be informed exactly as to what has taken place within the credit union over the past two years with these Board of Directors. Chairman Ayers and his board have taken possession of our credit union and it is not theirs to own.
SECU Retirees are already out front and actively working. Understood, SECU current employees will need to use caution, but your family and friends CAN be your voice. It is time to start spreading the word for a vote AGAINST Garland, Handford and Parrish. Right now we do not have any candidates to promote, but we can be working to instill all members' realize their vote must bring a change in This leadership for the future of State Employees' Credit Union.
There are more of Us than Them,
October will be here soon.
This will take an organized effort.
It can be done. It must be done.
Time to stop Complaining and
DeleteStart Explaining in cold hard facts
to all who are willing to make a difference.
A return to the SECU of Summer, 2021 is upon us, time to go to work to make it happen...or accept where Eleven Individuals, a bad CEO, a sold out Executive Team and a bunch of Interlopers took our great credit union. The choice is fairly simple.
Is this total or monthly?
DeleteIn tribute to what will hopefully be Ms Garland's last performance representing SECU at her recent Kiwanis Meeting - we do what we have done years...send us your Momma's votes and all the other votes she can bring with her
DeleteTotal for 4 months
DeleteLet's just admit the obvious with the financials. Hayes and the Board spent WAY too much money in a short period of time paying exorbitant salaries to bring in outsiders that have clearly underperformed, paid WAY too much money for vendors and consultants that are robbing us blind when we used to use in house expertise (and the service provided to the members is terrible compared to branch staff doing it) and finally collections should have never been removed from the branch - numbers speak for themselves. Really, really bad management by the Execs and the Board. It's as simple as that - spend more money for worse service. Brilliant!
ReplyDeleteWe have paid a lot of money for terrible advice and bad results from external hires and outside vendors that don’t understand anything about SECU. They haven’t improved the system, they’ve broken it. We can handle change, but it’s been one disaster after another. That cannot continue.
DeleteEmployees have dealt with unprecedented stress and worry, feeling like they are suddenly disposable. Members are unhappy that their go to people can’t help them anymore in multiple areas anymore and that response time for services has gone completely downhill because member facing positions aren’t getting staffed. We are overly specialized and it’s crippling our ability to meet members needs.
With that, it’s important to know a lot of us are 100% willing to work uphill to fix these things.
Well over 100 people came from First Cit, they said hire who you know...
DeleteThe financials are starting to look like a bear market
ReplyDeleteIf the Industry Standard was to jump off the cliff would these folks follow so they can be just like them?
ReplyDeletethey would. Worst. they already have
DeleteI rest my case your Honor ...
DeleteScandalous incompetence. Profound stupidity. Astounding errors ... just to name a few traits "they" subscribe to ...
ReplyDeleteBut it's NOT their fault!! it's the Fed, it's the old systems, it's the membership not buying in because they don't like change. Sheesh. It's this board who is so stupid and caught up in trying to be just like everybody else, keeping up with the banks!! This board still doesn't get that NCSECU is a CREDIT UNION, not a bank. Didn't their mamas teach them to think for themselves? My Mama told me, "Just because everyone else is doing it doesn't make it the right thing to do. think for yourself!" Can we hang in there until October?
DeleteI wonder if this board reads this blog? Hey there! PLEASE RESIGN TOMORROW!! Do the right thing, like your mama taught!
they aren't interested in Credit Union philosophy, (that just cramps their style). That's why one of the first things they did was do away with modules which taught that and how a CU worked and terminology of a CU. These are banking people .... fleece the flock is what they understand! and the more the merrier (open membership)
Delete@8.40 am. You said it right. Fleece the flock. They will keep doing until all the billions have been fleeced out of SECU and then find a new target. Money sucking leeches. It's hard work peeling off the leeches. And they are aplenty now circling like vultures to see which venue can be opened nonstop.
DeleteFor me, just knowing they made such a horrible choice on the CEO selection which was bad enough, but they wasted 6.5 million of our money to bring him here
ReplyDeleteWhat I don’t u understand is how Hayes managed to get paid to be a CEO of the 2nd largest credit union with absolutely no ties to the institution-lands the job, two years later , caused so much chaos , leaves , then lands another CEO role.
ReplyDeleteWhat the heck is going on?!?
NCUA - as the past two years has proven, every organization has people who will take part in the favor for favor work style.
DeleteIt's an inside job (Think National Credit Union Administration (NCUA))... watch "Inside Job" on YouTube, it helps you understand a little of how things work. The way this has went down is exceedingly similar.
DeleteAs this tremendous ball of yarn continues to unravel we, members, are finding out that yes, Sleazy Jim was part of the probem HOWEVER our current Board members and now CEO Brady have been and are the biggest problem that has led us to where we are today! We must continue to educate as many members as possible. We MUST attend the annual meeting in October. Continued dog and pony shows of "fireside chats" are totally useless!!! I'd like to see a deep dive by a trusted main stream media to lay it all out there!!!!!
ReplyDeleteJim's rein is over ... it is now Brady and the bunch (BOD). Will anything change? Don't hold your breath, but DO hold onto your pocket book!
DeleteThieves are thieves whether in an ally or a boardroom.
You’re crazy if you think they plan to have the standard format for the annual meeting…. They will ensure to control the narrative
DeleteThe “culture” email from today is even more proof of their web of lies. You have a 12 month plan in place already but don’t have a fully scoped plan, explain. Well enlighten us on what information you do have! Where’s this culture information? Information on DEI?
ReplyDelete