To: Mr. Chris Ayers, Chairman,
SECU Board of Directors, October 21, 2023
I am writing this email to request your thoughts on Mrs. Brady’s quote in CUToday about my attending and expressing my concerns as a member/owner.
It is a complete misrepresentation of what transpired. I do admit that I am a 20 year retiree of the credit union and I worked with SECU in Goldsboro for 30 years. I came to the annual meeting to do two things: (1) to support a member/candidate that I have known for 45 years. Mr. Stone has served as an advisory board member and a loan review committee member. I felt that he would provide much needed grass roots perspectives. I do not think that is a crime to support a candidate that would reflect member values.
(2) The second and most important issue was expressing my opposition to
risk based lending. Mr. Blaine nor any one else provided me with talking
points or agenda sheets. I was talking from 30 years of grass roots experience in the trenches
serving members who were economically challenged and primarily low
income. Regardless of circumstances, we treated all our members with the same level and quality of service.
As a result of our policies, the credit union developed generational
loyalty and trust from our field of membership. Growth occurred as a
natural consequence beyond our wildest dreams. We did not need hoards of
marketing gurus to spark growth. Our members did it for us. We are now
turning on our most vulnerable members with excessive interest rates
they can ill afford. Weren’t these the type of members our original board in 1937 was trying to help avoid loan sharks? We are now the sharks.
One more question. Are we handcuffed from offering our members higher rates because the prior administration violated a cardinal rule of not investing in long term instruments with short term deposits? How much money do we have invested at 2% or less? What would our capital be if we marked to market values these assets? BTW I can get 5% on a daily money market fund backed by treasuries at my broker. If you want A paper, compare our 1.1% to their 5%
I will close by saying all that glitters is not gold. We need to take care of our members already in the tent before we pitch new ones.
Respectfully submitted
Julian Hawes
In 1968, SECU opened its first branch offices in Chapel Hill, Morganton, and Goldsboro, N.C. - communities with heavy concentrations of state employees and educators. Goldsboro is in eastern North Carolina and the area has several state-sponsored mental health facilities - difficult, demanding work, not highly paid. The Goldsboro office was managed by two legendary leaders, Mr. Julian Hawes and his predecessor, Mr. Woody Lamm. Their fair, compassionate leadership set "the non-industry standard" that made SECU what it is (was} today. Julian Hawes is a voice to which one should pay attention.
Julian Hawes is a person of integrity, ethics and honesty. To imply he is part of some conspiracy only shows how low Ms. Brady will stoop to push her own agenda. I am embarrassed for the Credit Union.
ReplyDeleteMr. Clements, Ms. Perkins and Mr. Stone, wish you well at your first Board meeting tomorrow night. Guess you realize from recent events that the current Board members and the Exec team will attempt to sway you, misdirect you, confuse you, circumvent you and quite possibly lie to you. Please stand firm in your convictions.
ReplyDeleteYou are the beginning of the end of them.
To answer the question about treasuries. I don’t believe that is the reason we are going to risk based pricing but it’s the reason deposit rates are so low. We have billions of dollars in treasuries that are tied up earning less than 1%. Believe the number is around 500 million that are expiring at the end of this year currently earning .35%. Another 2 billion expiring 12/2024. And another 1.5 billion expiring in 12/2025. Those were purchased during Covid and with the way the Fed has raised rates are significantly under water.
ReplyDeleteTake the ‘loss’ and reinvest?
DeleteNot doubting what you're saying but consider this. We have a 30 year plus previous CEO who obtained his CPA and a 5 year former CEO who's was previously the CFO for many years. They both have access to the financials and they both say deposit rates are way too low and Risk Based Lending is unnecessary. Who you gonna believe Leigh Brady or Jim Blaine and Mike Lord? Answer is clear cut.
Delete@4:33 that is what SVB did and it didn’t work out well for them
Delete@4:54 my comment was more to address Mr. Hawes question about the amount of funds invested at less than 2% than deposit rates. I personally believe that SECU is trying to raise rates but is sort of stuck with the large amount of treasuries and 30 year fixed mortgages at a low rate.
Where did the “record” 585 million in net profit, which was mainly achieved without race based lending, go? Not to the members whose money “this board” is loaning out.
DeleteI personally have liked Leigh for years…still do…but she is just wrong here and I am very disappointed
ReplyDeleteI wish you would be right but don't see Chris "Thank you for your comments" Ayers changing his spirit animal. He is the MasterDucker.
ReplyDeleteThe board and CEO are getting a little too big for their britches ...
ReplyDeleteYou should send that to the author of the news article. Also, email it to Leigh Brady. At least there's a chance you'll get a response from her. You're not an A Paper elite so there's zero chance of a response from the board.
ReplyDeleteWe need to stop playing nice and get busy making sure Ayers gets firedfrom his position. He's screwing us as a state employee not just at the cu. He's a joke and corrupt. Push his incompetet a** out.
ReplyDeleteIs this the same Ms. Brady who is pushing diversity at SECU? The same Ms. Brady who has she/her/hers in her email signature to show her support of gender inclusive pronouns? The same Ms. Brady who likes to brag non-stop about how she has worked at SECU for 35 years and is the first woman CEO? What about the Members Ms. Brady? What about those who are minorities Ms. Brady? What about those who are struggling and turn to SECU because of our respectful history of serving those who are just trying to make ends meet? Why do you like to tout on and on about how SECU needs to completely transform in order to survive? REALLY? Or is it just that you need a way to finance the company lunches to celebrate Risk Based Lending (Race-Based Lending), extravagant trips, numerous so-called team-building exercises that occur far too often with exorbitant price tags? Do you not understand that this is the MEMBERS' money that you're wasting? Are you really this clueless or are you just heartless? Either way, this is a slap in the face to the highly valued membership of SECU.
ReplyDeleteMs. Brady touts that she is for diversity and continually reminds us that she is the first female CEO of SECU. Supporting diversity and minorities is most certainly honorable and the right thing to do. But how about we put those words into action Ms. Brady. What about our members who are minorities or have encountered hardships in their lives? Does Risk Based Lending help them? The answer is a resounding NO. What about those who are struggling and turn to SECU because of our respectful history of serving those who are trying to make ends meet? Why do you like to tout on and on about how SECU needs to completely transform in order to survive? REALLY? Or is it just that you need a way to finance the company lunches to celebrate Risk Based Lending, extravagant trips, numerous so-called team-building exercises that occur far too often with exorbitant price tags? Do you not understand that this is the MEMBERS' money that you're wasting? Are you really this misled or are you fully aware of what you're doing? Either way, the New SECU practices are a slap in the face to the highly valued members of SECU.
ReplyDelete