As mentioned yesterday, risk-based lending was the first concern - among many - of SECU members who believed the Credit Union has been changing for the worst. Many members spoke eloquently against "tiered/risk/race" based lending at the Annual Meeting and the subsequent vote demonstrated that a pause for re-discussion and reconsideration was warranted. But that has not happened.
Thought it might be timely to walk back through the pros and cons of risk-based lending and have an open discussion of where the differences in opinion on this topic lie. If the Board does not want to listen to both sides of the argument, hopefully you will be more open-minded. What's the harm in listening?
We're going to take it slowly, because risk-based lending is a topic which will make you "glaze over" pretty quickly! So, in small steps, in small bites, ok? Yesterday's first piece was simply to say a lower rate on a loan is preferable to a higher rate - whether you're "A-paper" or "E-paper". Hope we can all agree on that.
Today, would like to address the idea that SECU can't survive financially unless it adopts risk-based lending. There are two easy ways to demonstrate that that idea doesn't appear to have merit. First, everyone agrees that for the first 85 years, SECU grew every year in members and assets; and SECU never experienced a year when the Credit Union wasn't financially "in the black". All without risk-based lending.
The second confirmation that risk-based lending is not essential to the financial success of SECU was confirmed by CEO Leigh Brady in her report at the Annual Meeting. Ms. Brady proclaimed "record profits" at SECU over the last five years and showed this slide:
Those "record profits" were all achieved without risk-based lending, which wasn't introduced until March, 2023.
Risk-based lending is not essential to the financial success of State Employees' Credit Union.
... are we ok so far?
Preaching to the choir , but it's hard to dispute those "facts" ...
ReplyDeleteBTW, since we have all year till we replace the next 4, we can take our time and discuss ALL the issues surrounding this board and C-suite management's performance (it will take that long). Because I don't think we've seen the worst of it ... this is just the tip of the iceberg ... Full speed ahead we're invincible!
ReplyDeleteWho's going to save our credit union from this disaster? It won't be this board or management (obvious). It won't be Ms Ray of the NC Credit Union division (we're still waiting on 2 EASY questions to be answered, don't expect them to do the difficult tasks). It won't be the federal CU oversight agency (see 'Insider Job' the movie). It's up to us the people the member/owners. We have what it takes to turn this ship around. The truth is on our side and that is the light in this darkness.
ReplyDeleteOur mission is to make it clear that this CU belongs to the member/owners and not to any special interest group(s). We have every right as member/owners to speak out and demand the truth and hold those accountable to do this fiscal duty! No more games ...
Too many people's livelihoods depend on the credit union "Doing the Right Thing"! We need to get back to ..
SECU - There IS a Difference"
The Brady Bunch is loving playing smoke and mirrors. It didn't work last year and it's not going to work next year. However, we must keep members engaged, remind them and continue to inform them about exactly what is going on. We have to encourage them to tell others who have no idea (most members) because The Brady Bunch has proven they are not into truth, honest facts, disclosure or transparancy!!!
ReplyDeleteBeing a non-employee member, I want to ask this question in all seriousness - If Ms. Brady is the problem, who would you replace her with? Do you feel the board will really go outside SECU again? If it comes from within, it doesn't sound like the upper management would be a good option. I know there are some "seasoned" SECU folks that still remember the old culture but would they really want it? They would step into an impossible scenario.
ReplyDeleteI applaud Ms. Brady for stepping into that difficult situation and I was hopeful that she could make some changes, but it appears the local staff will get no help from management. The true losers in this situation are us members. At some point, the juice isn't worth the squeeze and members will look elsewhere.
She didn't just step in. She was voted in by all the former board members because they were all in agreement with the plan that Jim Hayes had which was going in the wrong direction and we're still going in the wrong direction. Did you know about the 6.5 million Brady and the board spent to get Jim Hayes here and then how much money it cost us when he left after 2 years? Thank God he's gone but Brady is not the one to be CEO. She doesn't listen to the members and accused those who spoke at the annual meeting of being puppets. How ridiculous and outrageous!
DeleteWhy does Brady want to "re-invent" the wheel. Things have been running smoothly at the credit union for 85 years. Now all of a sudden we need to take the wheels off the wagon for a new RACE BASED wheel. A more expensive wheel, too. The net effect is the credit union will generate even more income from RACE BASED LENDING. It's all GREED. And what is GREED? GREED DEFINED: When More Is Not Enough. During these difficult economic times the credit union presents a program to further hurt the peon member. It is economic terrorism. These directors and highly compensated management folk are economic terrorists. They are running a cartel not a credit union.
ReplyDeleteThat’s exactly what it is. It’s a financial cartel. They are villains. They have no empathy for our membership.
Deleteenslaved to money... they will never ever have enough to be satisfied.
DeleteThe CU may NOT generate more income from this RACE Based Lending. . . I imagine a lot more defaults on loans and possibly loss of income for the CU. People will take what they are offered not realizing it just isn't really affordable for them until it is too late.
DeleteWonder how hard it is for APCO to manage the websites? took forever for them to stop advertising themselves on the "WE are SECU"website. how long do you think it will take to remove Alice Garland, Jo Anne Samford and Thomas Parrish from the website. Understand that SECU doesn't have photos yet of the new members, Barbara Perkins, Chuck Stone and Michael Clements, but at least get their names up there!! WE are SECU!! and quite proud of our accomplishments in getting all three elected!
ReplyDeleteYou would think with their 'expert' technology they could do the simple things ... you would be wrong!
Delete“If you are faithful in little things, you will be faithful in large ones. But if you are dishonest in little things, you won’t be honest with greater responsibilities."
If they can give SECU and State employee's a discount, why can't "this board" charge everyone the same rate and give the "A Paper" people a discount?
ReplyDeleteNot much of a discount.
DeleteTurned in my notice today. Worked at SECU for 25 years, 23 of which was rewarding and I was proud of the place I worked. I would go out of my way to promote SECU. I planned to go 28-30 years, but the last two years has been pure hell and I just cant take any more. Good luck everyone. Unfortunately, I just dont see this thing ending well.
ReplyDeleteOne more year. WE can elect four new board members next year. That will be 7. the turn around began this year.
DeleteGood luck! So many want to follow you but just aren't quite there yet.
DeleteBye Felicia
ReplyDeleteWrong blog Josh.
DeleteIt saddens me to say that after being an SECU member for just over a decade, I'm closing all of my SECU accounts and moving them to Coastal Federal Credit Union. I had really hoped that by now all of the turmoil, disruptions, mismanagement and bank envy brought on by this board, Hayes, Ms. Brady and Josh would have been reversed. I love this credit union, and it's always been good to me. It's not good to me anymore. It caters to the elite and privileged. The motto of People helping People has turned into SECU helping those of means and pristine credit. I hope that one day, I will come back to SECU, but a LOT will need to change before that happens.
DeleteMr. Blaine, I sincerely wish that we had you back as president of our beloved credit union. Thank you for looking out for the little guy during your honorable tenure. For almost 40 years you guided our collectively owned cooperative with true dedication to the members, those of us who own this credit union. You didn't allow outside forces into bullying us into straying from our charter.
Now, the board, Ms. Brady, and Josh B. think that they are the sole owners of our credit union and that we should just sit down, shut up and blindly trust their infinite wisdom. It really breaks my heart.
‘Like’
Delete"Bye Felicia"
DeleteThis is an prime example of how ALL the legacy employees' have been treated since the trojan horse Gym was rolled in ... and this is mild compared to a lot of other examples!
"Bye Felicia"......
DeleteWow! How incredibly insensitive, petty and downright mean. These new IT folks at SECU are like nothing I've ever seen. How disgraceful this is to our fine organization!
Hey there. Very sorry to see you go. Still plenty of us here in all levels of management who strive to do the right thing for our members each and every day; it’s something I wake up each morning excited to do—within the abilities I’ve been given. I think you will soon find that Coastal Federal has risk based lending, too. Hopefully you’ll find some caring folks there too—I’m sure they have plenty of good employees as well, in spite of their policies.
DeleteOk. so RBL has NEVER been essential for growth at SECU. Nor has it been essential for "profit", if that's how one talks at a NONprofit. Lots of money used to be returned to members before SECU got so profitable. What happened? No longer, so now A paper may borrow more but save less at SECU to the tune of $4billion. no profit for the member, only for __________. (Fill in the blank!)
ReplyDelete@10:40 PM on 10/31/23......."Bye Felicia"......That right there is a prime example of the callous disrespect, immaturity, superiority and indifference that has been displayed by the new IT management. What has happened to this place, and why have we allowed this mistreatment to continue? I'm baffled.
ReplyDeleteThe credit union made some glaring missteps by hiring a barely seasoned IT manager as their CITO and a maniacal CSO who can't get out of his own condescending way. You hire toxicity and it spreads like wild fire.
DeleteFirst Citizens was VERY toxic. I assumed SECU would be different but it’s just as toxic here.
ReplyDeleteThe post and first response pretty much sums it up.
ReplyDelete