September, 2023 hopefully marks the end of two years of unprecedented turmoil and disruption at SECU. So far, nobody has won, everybody has lost. Let's hope the pain was worth the effort.
Below is the SECU Board's snapshot of current performance. SECU remains a sound financial institution. Soaring operational costs over the last two years and the drop in deposits due to non-competitive rates must be addressed, as do the rising charge-off losses associated with lending. These are management issues - entirely solvable.
Two other issues may be more challenging - 1) the perceived decline in service quality and 2) a divided staff. And, yes the two issues are directly related. SECU in the past enjoyed a 98% member approval rating (externally and independently surveyed) - the highest in the Nation. That's no longer true. That level of support can be regained, but it will require "from the heart", boots on the ground, hard work from the staff. All SECU members want the staff to win that round!
The remaining issue is the principle, ethical divide associated with risk-based lending. One would hope that the new Board would pause on this issue and publicly listen to all opinions on this key, critical issue for SECU. The former Board had heard only one side. There is no financial, operational, nor responsible reason not to pause and re-discuss this issue with the membership. If the SECU Board fails to take this prudent, reasonable member-beneficial step then... it will be another long year.
Let's hope for the best - and sound, fair judgment by our Board.
Always hope for the best ... but plan otherwise ...
ReplyDeleteBe prepared ...
save for a rainy day ...
DeleteI couldn't agree more with all of these sentiments. We need to win back the support and approval of our members. The agendas pushed by Hayes, Brady, Bomba, the board aren't the goals and ideals of our membership. We're not a bank. We're a not-for-profit cooperative owned by its members. Do they not understand that? These minority elites don't reflect the values of the hard-working, oftentimes struggling, honorable members of SECU. The people have spoken with the replacement of three board members and we're not going to stand for the corruption and mismanagement any longer. Let them eat cake says Brady when she carelessly explains how Risk Based Lending worked for her daughter because she co-signed so that her daughter could get the best interest rate. Most of our members don't have that luxury. Brady is stepping on the backs of our members to do what she always does. Self-righteously declaring that the rules don't apply to her. She thinks that she is somehow better than the rest of us. GIve me a break! So what if you've worked at SECU for 35 years Ms. Brady. Big freakin' deal. President Biden has been in politics for over 50 years, yet he has managed to be the most inept, clueless, disgraceful, useless dishonest, incompetent president that this nation has ever endured. There is such hypocrisy and eliteness in the new executive team. I would love for there to be healing with the employees of this fine institution. Speaking for my department, I'm disappointed to say this will require some turn over. Bomba and his First Citizens crew who managed to engage in a hostile takeover of our IT department don't respect the long-standing employees who have shed blood, sweat and tears for this organization and its members. Mr. Chris Ayer (not to be confused with the buffoon chairman of the board Ayer"s") respected our members, this fine institution, and his staff. He actually cared about us. All that Bomba and his acolytes are concerned about is making a name for themselves and padding their resumes so that they can move on to the next employer to wreak more havoc and disruption. They are a disgrace to SECU and those of us who take pride in our credit union and its members. They need to move onto a bank so that they can push their senseless ideas where they belong, in the greediness, pitiless and heartless realm of predators.
ReplyDeleteThey left the places they hated only to bring their
Deletehatred with them and to infect SECU!
"SECU - There Was a Difference"
I would like to thumbs up this post. I would also like to point out that the system that makes interest rate decisions based on credit scores, and then allows you to get a cosigner on your loan to decrease your interest rate (such as Ms. Brady states she did for her daughter), is a way of playing the game (or gaming the system). The intent of the RBL system is to give companies more money for allowing the rich to stand on the backs of the poor. When you know someone who's rich, if you get their signature, now you also stand on the backs of the poor.
DeleteBomba told us this wouldn't be the last job he has in his first town hall. And he said that he didn't expect it to be our last job either. I took his advice and I'm infinitely better off working at a different company.
DeleteLeigh was the principal that began the purge of IT legacy employees and she fully backs Bomba. It is clear that they have doubled down since the election. There are dozens who are near the end of their rope. The Brady / Bomba destruction machine will soon get their wish.
DeleteIf Leigh wanted anything different she would have made a move similar to what she did with Benesh and Jamie A. She had a chance to squelch the blowhard Bomba, she didnt do it because she is too inept to understand the damage he is doing.
Hey Leigh and Bomba....We know new stuff is coming, lower maintenance, more flexibility, more options, more to offer. All of that is true, but who is going to keep the lights on once you chase all of the Legacy employees away?
Wow! I couldn't have summed this up any better! The 10:59 AM post hits the nail on the head. As a member of SECU and a former employee of First Citizens Bank who had the distinct displeasure of working with Josh Bomba....this guy is trouble! I could fill volumes with the misdeeds, deceitful acts and wreckless behavior that I witnessed from him on a routine basis. He only looks out for himself, and the guy just can't be trusted. When a friend at SECU first told me that Josh had attained the CITO position, I almost fell out of my chair. I wondered how in the h*** could he have convinced SECU to hire him as their Chief Information Technology Officer. I then learned that he was highly endorsed by Leigh Brady and then hired by Jim Hayes, and I started being able to connect the dots. I didn't really know anything about Jim Hayes, but I knew PLENTY about Leigh Brady. A close friend of mine once worked in the HR department at SECU, and she'd had the opportunity to see Leigh Brady in action. My friend said that Leigh Brady was the most conniving, self-serving, manipulative person that she had ever worked with. It bothered her greatly, because she typically admired women who had made it through the ranks and had broken the glass ceiling. However, she said that when she looked at Leigh Brady, all that she could see was Hillary Clinton, another female who trampled anyone who got in the way. I guess it's like my grandmother used to say, "Scoundrels like to run in packs". God bless all of you who work at SECU for having to endure Mr. Bomba. I wouldn't wish his leadership on my worst enemy. I will admit that he's very charismatic and can be extremely convincing with his eloquent narratives and diatribes. He certainly had me fooled at first. But he is not someone who you would want in ANY leadership position, and certainly not as CITO of such a wonderful organization as SECU. It makes me really sad.
DeleteWish folks would leave the national politics out of SECU comments. Really doesn't help. Those opposed to the current direction of SECU include members of both political parties.
DeleteI don't think this is a place to discuss national politics. Mr. Blaine, I'm appealing to you to please keep those remarks off this blog. Thank you.
DeleteWow...Leigh compared to Hillary? That's a little too far 8:29. I think we need to meet these people ourselves and form our own opinion.
DeleteAgree on the national politics - SECU is not that type of issue.. Probably should note about State politics too, that the Credit Union Division falls under the NC Department of Commerce not the Attorney General's Office. Some commenters have mentioned Josh Stein. NCCUD is not under his direction. The AG's office provides legal guidance to all NC governmental offices.
Delete"Q: 2) May a N.C. state-chartered credit union adopt rules, policies and procedures which effectively amend its bylaws without approval by the NCCUD? "
DeleteHave they provided guidance on this question yet? Seems pretty straight forward ...
Also, anything from the subcommittee review of bylaw standards and the State Statutes?
DeleteThanks
As usual Mr. B you hit the nail on the head. I hope they are listening - it's a critical time for SECU.
ReplyDeleteI need some help understanding Capital to Assets. I'm guessing that Capital consists of things like real estate and equipment? So, if folks take their saving elsewhere, does that make Capital to Assets higher?
ReplyDeleteWait till you see the interest rates on our personal loans released. Stamp 10.75% in your head and let’s come back in a year and see if rates have dipped below that rate. Hint. It won’t It’s a money grab in order to help pay for all the technology that’s on its way to replace us
ReplyDelete'Americans fall behind on car payments at highest rate in decades'
ReplyDeleteThe number of Americans who are failing to make car payments has reached their highest levels in three decades, according to data from Fitch Ratings.
The share of subprime automotive borrowers who are sixty days or more delinquent on their loans increased to 6.11% as of last month, marking the highest level since 1994 and exceeding 5.94% at the beginning of this year. The phenomenon comes amid elevated interest rates as Federal Reserve policymakers seek to subdue record inflation and constrain the money supply.
Consumers now face a severely high interest rate environment relative to the years before the lockdown-induced recession. Buyers with high credit scores can now expect an average 5.07% interest rate on new cars and 7.09% rate on used cars, according to data from Bankrate.
When Brady got up to the podium and started bragging about her long career of 35 years it made me realize how inept she really is for this reason alone. She had 28 years of watching JB run this place flawlessly with great member service , astounding financials and great employee morale. She then had 5 years to watch ML repeat what absolutely works. She doesn’t have enough sense after 33 years of seeing what works to stay the course. She, along with the rest of the failed BOD should resign. If not, when we get a majority BOD next year the writing will be on the wall.
ReplyDeleteI am greatly concerned for the incredible financial commitment to some products of the digital transformation that are not only unnecessary but are bleeding the coffers. A large amount of money is being spent on a new Member Access portal, in the upper 10s of millions, that will require member data to be shipped off to the vendor systems. My understanding is that, yes, modernizing is necessary, but it could be done at a fraction of the cost while retaining appropriate security and utilizing much of the pre-Bomba workforce.
ReplyDeleteThere is a push to move everything into the cloud it seems. SECU will lose ownership of its Member data like this. It is not a good way to go, but apparently it is the only way the selected vendors will work with them.
Also, some SVPs are outsourcing work to companies in other states and overseas (with poor results in some cases), at great expense, when there are qualified individuals that could do the work internally if the SVP would bother to go looking. I am certain that SVPs have every excuse in the world to do what they are doing. And I imagine that the highest levels of executive leadership either do not care or are too ignorant to know the difference.
Speaking of executive management, it also appears that SECU is in the business of hiring plenty of executives (SVPs and VPs alike), most of which are from the outside. You can see this pattern of trying to transform into a bank and not operating like a cooperative. Just follow their welcome messages on LinkedIn announcements.
Need to be specific here. Those SVPs"s and VPs that you are talking about are concentrated in operations and not in branches. And yes, they seem to be abundant. New departments popped up everywhere with employees titled as SVPs and VPs who don't even manage anything or anyone.
DeleteYou are correct. I should have been more specific. In particular, it is some of the newer hired operations SVPs.
Delete"There is a push to move everything into the cloud it seems."
DeleteThe above statement was a STATED goal of management...
Were the contracts board approved?
ReplyDeleteGuess LinkedIn is the place to welcome now. The internal emails regarding new employees starting and employees leaving have dried up. Pretense of nothing is going on I guess!!!
ReplyDeleteNobody talking about the 1,500,000,000 in short-term funding solely for the purpose of artificially inflating our assets above 50B before the annual meeting? Has the credit union ever done this type of borrowing before? What is the interest rate on this 1.5B loan taken when rates are at peak levels? Why is compensation expense up over 9% when there are employees who have not received the salary they were promised when hired and have had their salaries frozen for this compensation study that has taken YEARS? Why all the secrecy? Oh I know, they are making it difficult to follow the money since it is all flowing to execs... BTW I also noticed quite a number of new SECU owned vehicles (2023, 2024 Toyota highlanders) assigned to EVPs... what is the purpose of this other than wasting members money for more perks for the folks who already have max pto, max salary cushy positions.
ReplyDelete