Thursday, July 20, 2023

SECU June/2023 Yearend Financials - The End Of An Error, Part 1

SECU's financial (fiscal) year ends on June 30 of each year. The SECU Board will get its first look at the final results for this year (fiscal year - 6/30/22 to 6/30/23) on Tuesday night.

But, thought you might like an advance look. SECU members are no longer provided access to the full monthly financial statements, as in the past. The Board and "current/future" CEO seem to believe that the membership may not understand - and might misinterpret - the financial data. Although this was never a problem over the last 85 years, "things are changing" at the credit union. The SECU accounting department apparently remains willing to "leak" responsibly, when appropriate. Here's the skinny: 

  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 several negative financial trends persisted through June 2023:

Total assets - continued to decline, remaining below the $50 billion mark - off over $3+ billion since June 30, 2022

Total deposits - same story, off almost $4 billion from 6/30/2022.

❗The SECU Board and management now state they are no longer focused  on "top-line growth"- that's growth in deposits and assets. Can't blame them for that, given this year's results - wouldn't want anyone to focus on that plunge either.

 ✅ The biggest "news" remains the substantial failure of SECU to meet Board-approved budgetary targets, specifically in the areas of operating costs and delinquency/chargeoff controls.

✔ SECU ended the 2023 fiscal year @ 15% over the SECU Board's budget target ("2% of assets") which equals @ $75 million over the mark.  

Actual 2023 operating costs of @ 2.30% of assets are 24% higher than SECU's traditional operating cost range of 1.86% of assets. That 24% increase in the operating expenses is costing members $220 million more every year.

Delinquency and charge-offs have soared in an improving N.C. economy.  The charge-off levels for 2023 are more than twice (which is tens of millions of dollars) the levels experienced since the "New/New" started weaving its magic less than 24 months ago.

But here's some information which might help you as a member get the full financial picture on SECU [but please don't misunderstand or misinterpret it, ok?]  SECU is required to report complete financial data quarterly to the federal government. Here's how you access it:

1) The National Credit Union Administration (NCUA) is a federal agency which provides deposit insurance to U.S. credit unions - equivalent to the FDIC for banks. The NCUA requires each credit union to file a quarterly (end of each calendar quarter) financial statement known as the "Call Report" or also as the "5300 Report".
2) The quarterly Call Report becomes available to the public 1 month after filing (on Feb 1, May 1, Aug 1, Nov. 1) at the NCUA website: []
3) Go to the website landing page and click on "Analysis' ' (middle of page), then drag down to the right and click on "Research A Credit Union".
4) When the "Research" page pops up enter the charter # (SECU - 66310, LGFCU - 24003. CIVIC - 24898) or in the second section you can search any credit union by name, location.
5) If you enter 66310, the SECU page will pop on "View".
6) When the "Credit Union Details" page pops up, you have several search choices to explore. For the "Call Report", first pick a cycle date (most recent quarter, or go back in history) , then hit "Download" and it will be loaded to your computer. When the report appears, scroll down to the fourth page and you can click on particular financial data or just keep scrolling down through the whole report.
7) On the "Credit Union Details" page you can also view some comparative ratios by clicking on "Request FPR" (look down right side). When the financial performance report page pops up select third option ("I want online") and hit OK. You can then surf among the 3 options: Key Ratios, Financial Summary, Historical Ratios. [if you try this right now, you'll probably get a "no data" response because you're asking for the 6/30 data which hasn't been released yet (Aug 1!)... so back up a quarter and try again!]
More than you wanted to know, right! ... "give people a fish and you feed them for a day; teach them to fish and you feed them for a lifetime."





  1. So if it’s available every 3 months to all us stupid people who are going to misunderstand all that information, why doesn’t this board do the right thing and release it like they always did? Might score some goodwill points—but this board isn’t interested in members feeling good about their credit Union are they? It’s too bad this board thinks only they can truly understand. Wish this board could dumb it down enough for the rest of us

  2. "Your word is a lamp to my feet and a light to my path." Thanks for shining the light ...

  3. "They" should thank their lucky stars they don't have to earn money for a living and can just "play" the part ...

    “... everyone who has been given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked"

    You (BOD/CEO) have been given much ... and all you had to do was keep the wheels on the road and steer .... now look, we're in the ditch! But the good news is we can be rescued .... it will take some soul searching to "Do The Right Thing"! (It's more than just a saying, it comes from deep down, within). Easy to say but oh so hard to do.

  4. Got an idea for CEO Brady and the SECU Board. It's crazy but stay with me....Total Financial Transparency. I know, I know, we haven't seen much of that the past 23 months but I think it has some merit. Come clean with everything - the good, the bad and the ugly. Kill everyone with the details - bore us.

    At the very least you gain some credibility. Plus if you disclose everything then when you fix the problems (ok, making some assumptions) you're going to look like heroes, right? Not disclosing what was previously disclosed information because we can't understand it, it's too complex, we'll misinterpret it makes it appear there is something to hide. If stuff needs an explanation, give one - CFO Spivey knows this stuff in his sleep. Heck, blame the previous CEO's outlandish ideas. That would be transparent, and true.

    BUT, a word of caution, don't try to make chicken salad out of chicken sh*t. If it's not good, take your lumps, admit a mistake or miscalculation. No spinning allowed - keep the crisis management company far away. No one is perfect, stuff happens. As leaders of this incredible organization, Honesty is not the BEST policy, it's the ONLY policy. Get us all back on the right track ASAP.

    Good Luck!

  5. The Board of Directors did, however, release a "Notice of Resolutions Amending the Bylaws" to us employees today that states, among other things, that a member can now be reduced to what we call "cash-in-cash-out services" (you lose *everything* but your one membership share/ savings account) if the member "engages in conduct detrimental to the best interests of the Credit Union". Sounds like permission to punish those who speak out.

    1. this is the advice they paid for ...

    2. sounds like a divorce .... and they get the alimony and children. you just pay!

    3. Members get to do a survey after every call….how about members get to survey upper management and the executives? Micromanagement is coming to SECU in a bad way.

    4. I don't do survey's ... I'm done giving my information out for free while you sell it .... and nothing is confidential .... NOTHING!

    5. !!!!!!!!!
      Who gets to decide what’s “detrimental”?

    6. "engages in conduct detrimental to the best interests of the Credit Union"

      would that include...

      losing 3 billion dollars in member assets

      creating discriminatory tiered loan rates?

      creating a toxic workplace for legacy employees?

      If so, I can think of some people.

    7. to 6:18 PM ... spot on ... obviously it's not for the real "problems"

  6. Love the micromanagement tactics SECU is deploying on its employees. Surgery after every call? How about a survey on how you lost billions of dollars? Sounds a little silly to micromanage employees over trivial phone calls meanwhile executives and the BOD can mismanage billions of dollars?

  7. They are above everyone---Aristocratic and privileged by all the member's hard earned cash. This Board doesn't mid spending someone else's money.