Reasonable people hoped that the SECU Board heard "the message" so loudly delivered - especially on risk-based lending - at the 2023 SECU Annual Membership Meeting. We all hoped "this Board" might, in good faith with the membership, call for a pause to re-discuss and reconsider the rationale underlying risk-based lending. Isn't that what reasonable people would do? But, "this Board" is a special breed of cat - seemingly almost feral at times.
"The remaining eight" and the CEO, however, seem blinded by their own "leadership brilliance". On October 12, 2023, "All Employees" at SECU received a "damn the torpedoes, full speed ahead" memo that risk-based lending would be expanded November 1 with further expansion across all loan products in the near future. So much for member participation and member involvement; "this Board" remains in character, true to form... almost feral!
Let's parse this latest inanity by "this Board" a bit using CEO Leigh Brady's own words in her Annual Meeting report to the membership. Ms. Brady has widely proclaimed in the press that SECU can't survive financially without the move to risk-based lending - the old "We're going to end up like Blockbuster " scaremongering, which has also been foisted on the staff and advisory boards internally.
Yet, CEO Brady reported proudly at the Annual Meeting that lending was up 17% (almost matching the "industry standard" growth rate) and that SECU had achieved record "profits" in 2023 and in each of the last five years. Here's her chart:
... "this Cat'"( feral or otherwise) is out of the bag on risk-based lending! 
So for those who thought these people cared about you and you financial health and wellbeing, SURPRISE! They DON'T!!!
ReplyDelete... or do you need more evidence, because I'm pretty sure it'll be coming ....
I thought the same thing as she was reviewing this slide during her presentation. Thought I had forgotten everything since retiring! And why aren’t those record net profits being given back to the membership in the form of higher deposit rates!!
ReplyDeleteI agree their timing is crazy at least don’t make it so blatantly obvious by doing this 2 days after the meeting where many spoke out against the change.
ReplyDeleteThis should cost Them the very few still willing to give this Administration a chance.
DeleteMembers and Staff should not be expected to keep paying for Their consistently bad decision making for SECU. Try doing more with less Administration.
"...risk-based lending was not started until
ReplyDeleteMarch, 2023!" - only for CAR LOANS! Those financials include only a few months of RBL and only a sliver of the pie.
How stupid is this board?
DeleteDefinitely A- paper on that score
DeleteSorry, that should read "A - paper ", "top-tier" on a credit score.
DeleteLike 850 on the stupid score.
Let's talk about "misrepresentation of facts" to members...fact checkers are needed but not for JB's statements.
DeleteThis was a great big finger to the membership!
ReplyDelete"Enter through the narrow gate. For wide is the gate and broad is the road that leads to destruction, and many enter through it."
ReplyDeleteSounds like they have chosen the wide gate AKA 'Industry Standard'!
'They' have no change of heart, only outward, self-promoting obedience to the rulers.
DeleteThis will have sad, heart-rending implications for a lot of members.
maybe these are just 'transitory' rate changes ...
ReplyDeleteIf we are doing SO good, couldn't we try and work out a better deal to try and keep LGFCU from branching off? We hate to lose "our members".
ReplyDeleteI’m willing to bet that LGFCU will be leaving regardless. We’ve broken the trust we had with them and I doubt they will be willing to wait around for our next breach of trust. In their mind it’s better to separate now rather than wait for us to screw them again.
DeleteAh, the inconvenient truths…
ReplyDeleteThe increase directly aligns with the implementation of the CPOS (Consumer Point of Sale). A product that processes automated online loan applications, written by Legacy in-house developers saving the Members millions of dollars. This project was approved in August of 2021 just before Jim Hayes came in by Mike Lord, Chris Ayer, Rex Spivey and rest of the "old" execs. It was also immediately stopped when Josh Bomba came in. He hated it, in his demented mind, existing staff couldnt do something like that. He stopped it several times, then threw the developers under the bus when it was delivered a couple of weeks behind schedule. He calls it a glorified web site.
ReplyDeleteBomba has no clue what our systems or our people are capable of.
Bomba should have been out the door right behind Hayes. Two peas in a pod. Time is ticking away for a recovery...
DeleteYep Bomba is in so far over his head it's not funny. Most systems have lost 4-6 years of maturity under his watch.
DeleteDo they have a core system picked out yet?
DeleteI mean it's about time isn't it? What's the hold up?
Hayes and Bomba said they could replace the core in 18 months. 26 months in and not even a decision yet. In fact, funding for the initial manpower needed for the conversion was denied last week. So existing staff is left you keep the lights on, perform day to day, handle the LGFCU and LCCU divestitures and implement the core. No idea what the 1000 new folks are doing, but the rest of us are burned out.
DeleteAND there are several long time employees that will be headed out the door, sooner rather then later .... they are gonna be in a real pickle!
DeleteGuess they'll get their contractors they want but at what price?
Pay no attention to the gobs of money we are spending on new projects and putting all nee faces in senior positions. The credit union has gone backwards under the Hayes/Brady administration- losing a lot of the technology talent that made things run smoothly over there and replacing them with do nothing corporate trades. Brady has to go.
ReplyDelete"The way of a fool is right in his own eyes, but a wise man listens to advice."
ReplyDelete“A Raleigh developer is partnering with the State Employees' Credit Union to potentially bring a new tower just inside the Beltline.“
ReplyDelete'...the rich are not rich because they are better people than the poor, often it is just the opposite.'
ReplyDeleteSoon the Wheat will be separated from the chaff …
ReplyDeleteThe record profits from loans, but can't pay the membership in interest rates? They can afford to let great employees leave. Then hire worthless commercial bankers who don't believe the CU way. They even give them more money and top PTO benefits.
ReplyDeleteI guess the "People helping People" motto is truly out the window. The new motto will be "Send us your momma so we can nickel and dime her too" will start in January 2024.
don't forget about all the damage done by centralization of loans and collections!! That is the cause of the soaring delinquency rates. this was for 85 years a flat organization---lots of autonomy for SVP and local branches. And everyone learned how to do everything, no sitting around twiddling your thumbs(on your iphone) because you worked for the local branch, not some department in Raleigh and you knew how to do everything in the branch!! And you were willing to work to meet the needs of the member owners of NCSECU!
ReplyDeleteRecord earnings are most likely from LGFCU members switching to SECU if eligible and refinancing their loans at the same time. Well with RBL that train has stopped since we discourage members to switch car loans from 3.95% to 9% or more.
ReplyDeleteThe financial markets and individuals are teetering on collapse fueled by the US Dept of the Treasury reckless policies. Just listen to them ... 'Transitory Inflation', 'Greatest Economy' ever ... redefine 'Recession' etc. I'm not an economic major but I've lived long enough to decipher foolishness. The hard working member/owners will need someone in their corner ... now is not the time for SECU to abandon them to cater to the developers.
Delete