Lots of controversy among members about the direction of SECU.
Much has to do with the real and increasingly apparent declines in assets, in member service, in employee morale, and in the reputation for fairness the Credit Union had earned. Plenty of signs that these drops in quality are not just a matter of opinion or a mere difference in outlook - or culture. These are hard and soft dollar losses across many measures of performance and productivity.
✅ Members are receiving less from their credit union while paying more - often much more.
Easiest example is in loan performance. You probably have noticed much mention in the comments about the major Board and senior leadership snafu, resulting from the less than astute "centralization" of SECU loan administration and collections.
Previously, the origination, monitoring, and collection of loan accounts was managed at the branch where the loan was made. By utilizing the strong bond between local loan officers and local member borrowers; if problems arose, the local staff had the ability to work with members to find positive solutions. And again yes, unexpected, bad stuff does happen to some very fine members; and yes losses do occur. SECU historically had enjoyed one of the lowest loan loss (charge-offs) ratios among peer credit unions.
At 12/31/2021. SECU's charge-off ratio was .19%, about 2/10s of 1%! Even though the current SECU Board would lead you to believe that SECU borrowers were a bunch of n'er-do-well, non -"A-paper" slackers!
Take a look at the cost of that management "centralization" error to you as a member. When the current regime came into leadership in late 2021here were the delinquency/loss stats they inherited:
✅ At 12/31/2021
# of Delinquent loans: 12,148
$$$ Delinquent 60+ days: $352,881,000
Total Charge-offs for year 2021: $50,473,000
✔ Results after the "centralization snafu"... losses up by over $45 million - up over 90%!
✅ At 12/31/2022
# of Delinquent loans: 25,909
$$$ Delinquent 60+ days: $556,172,000
Total Charge-offs for year 2022: $95,535,000
✔ But it gets even better! Take a look at charge-offs so far in 2023...
✅ 1/01/2023 through 9/30/2023:
Total charge-offs for the first 3 quarters : $122,000,000
... it would appear that total charge-offs at SECU for 2023 will be 3 times the level of 2021 prior to the centralization of loan administration by SECU management.
... SECU does seem to have reached "industry standard" on this one!
why does the board keep doing the same thing? Is this anyone's idea of good healthy policy for NCSECU? How do they justify this? and most importantly, why don't the Board and Ms Brady share some real unhonest numbers and reasons with us members. We are not dumb, we can take it. Why are they doing this?
ReplyDeleteCollections need to go back to the branch but so do FAS and Mortgage Officers. I believe Leigh is in favor of Collections and MLO’s coming under the branch but I’m unsure on FAS.
ReplyDeleteIf you want to cut some costs let’s look at FAS, Marketing, IT and geographic pay. FAS hires new employees with no experience at $55-60k. The geographic pay is an additional $6-8k based on the zip code of your office (at least that is my understanding). Marketing wasn’t needed in the past so that can be cut. I admit I don’t know much about IT being over staffed but HR certainly has a lot of EVP, SVP, VP’s.
Surprised no one has mentioned the almost $30 million loss because of the Cash App fiasco.
All that said I’m still hopeful of what we can be/return to! Just hope SECU is not a sunk cost.
Cash app fiasco? What happened?
DeleteIT is overstaffed with non-technical people. A lot of the hires were paper pushers and contract signers.
DeleteMarketing is just a money pit. What has SECU gained with them? Losses.
The new management doesn't like to do anything unless there's a paid meal involved either. Everything includes eating out and getting catering. It's good to live the high life.
Let’s remember the branches are in fact doing collections up to 60 days, with no end in sight. This is while being told the loss of positions is fine because they have been relieved of so many duties that they didn’t need positions filled when people left.
DeleteThe Cash App fiasco is explained by the November 18th @ 9:31 post.
DeleteMeanwhile, RESPECTFULLY, MLO’s sit in their office making on average $70k+ a year, grandfathered into their old salaries, doing absolutely NOTHING most days. Some as high as 80k and 90k!!! It’s insane!!! Time to get rid of mortgage processors and give the responsibilities back to MLO’s!!! Mean while branches can’t keep FSO’s making $39k because of the staffing shortage and work load.This new structure is FAILING!!!
DeleteIn reality - we are frustrated and are venting on this blog; Leigh is not reading and all that report to her are shielding her as they feel it’s a real minority viewpoint. An even harsher reality is that she’s not asking the people for help that would provide the real reasons of why we are struggling. The data is not going to make a U turn. Service will not improve quickly. You can’t just look away LB - face the reality and lead…or move on
DeleteAll these problems are because of the board and the two CEO's Gym Brady policies. Until they have a change of heart we will continue to see the decline of SECU.
ReplyDeleteThe biggest question is why doesn't executive management admit their own mistake and simply give all collections back to the branch network? This error could be corrected in a single memo, although it will take many months to reverse this trend.
ReplyDeleteNot enough staff to handle it.
DeleteSend those marketing guys out into the branches to do collections! Make them useful
DeleteNeed more help in the branches for that!
DeleteThe 4th qtr losses will look so much worse by a topic that hasn't been discussed much. SECU reported a $25 million loss incurred by our failure to follow established procedures which caused a systems issue which allowed members access to funds they did not have. The issue occurred in June and the losses were just expensed in October. I'd bet 2023 losses will be well more than triple of the 2021 losses.
ReplyDeleteDid anyone get fired? Demoted?
DeleteEmployees are now paying the price for the mistakes and failed leadership by the executive team. Rising losses, uncontrolled spending, reliance on 3rd party vendors/consultants, and overstaffing through too much middle management and overuse of "specialization" have caused our Return on Assets to decline to .51% per Leigh Brady as announced yesterday in her memo. SECUs poor Financials was the justification for canceling the performance bonus for ALL employees and reduction of time off for branch employees. Why don't we start correcting our mistakes and lead instead of punishing our frontline member facing staff? Why not start removing some of the perks primarily used by management such as upgraded airline tickets and $75 dinners all on the dime of our member-owners. We had a blueprint for success, lets get back to what worked. Only a fool would continue to repeat their mistakes and continue down a path of failure.
ReplyDeleteImagine implementing changes and they clearly don’t work, aren’t popular with the staff…and then turn around and basically give the staff the middle finger when your plans didn’t work and take away their bonus?
DeleteCentralizing collections has been a total failure (that's you Jerry Harmon, Jim Hayes and Leigh Brady). Not as easy as the branches made it look huh? The branches due to their knowledge of the local communities, their personal relationships with the members and their doggedness were incredible collectors. They weren't checking boxes they were actually collecting. If they weren't getting the credit before they damn sure should now.
ReplyDeleteBet hey, Execs and CEO why don't you dig your heels in on a failed concept (RBL as well) and agree not to change come hell or high water 'cause you don't make mistakes. After all it's just the members' money you're losing.
Good e'ffing grief!
100% support this. There is no accountability when there needs to be even down to the manager/VP level. They are having to pull staff from other internal departments to assist Collections and other areas whose appetite was bigger than they could handle. These are the people they pulled from our branches who work from home. We should build back up the branch staff and keep our front lines strong.
DeleteThey know what they are doing. They know it’s hurting the branches. They are just buying time until the NCR technology rolls in to save the day. More than likely that won’t either. Can’t put a band aid to cover up this wound.
DeleteJim Hayes should return that 6 million from the credit union so we can have our bonus to feed our families during the holidays. Im sure you’ll be okay with 6 million less of our members money. Crazy how one man gets a 6 million bonus for not working a day in his life’s at secu. Highway robbery
ReplyDeleteCome on Leigh, some of us are pulling for you to right the ship! Make some changes please. Has there really been a loss or did someone in Education Services get fed FALSE info because advisory board members are being told income is good. So what is the real deal here? Would love to know what the BOD is being told about the info that is being fed to the local board.
ReplyDeleteAs an advisory board member we have not been given any information or informed about anything that is going on or had been approved for the last 2 years. None of the information presented at the 2022 annual meeting had been shared with any advisory boards.
DeleteThen your branch VP is not doing his/her job. There has been info sent out for the quarterly meetings, basically to rebuke what Mr. Blaine brought up in 2022. And remember, Raleigh doesn't want minutes submitted now for meetings. They stopped that as well to quit listening to members.
DeleteNot requesting minutes ('cause they don't care what you say), controlling the dialogue with a "canned" presentation, Branch Managers frighten to speak honestly to their Boards for fear of reprisals. Here's a News Flash, the Advisory Boards have been devalued right along with the branches.
Delete@ 1:52 - Think bigger. I believe the reason the minutes were eliminated was so "Raleigh" could communicate directly with the Advisory Board members through their emails and surveys. They didn't want anything potentially skewed by a branch person diluting or changing the message.
DeleteHouston, We’ve Had A Problem Here .......
ReplyDeleteDid the Credit Union Commission ever have their committee meeting?
ReplyDeleteHas the committee even been appointed? looks like they hope it will fade away....
Deletegood question, Mr Applequest would know.
DeleteLoan Administration Leadership is running a close second to Jim Hayes and "This Board" on those who have done the most damage to SECU.
ReplyDeleteA good name is more desirable than great riches
ReplyDeleteSECU should pay heed ...
The board is doing a wonderful job. The losses are going through the roof. I bet they can make it up in volume. SMASH IT! Is the board stuck on stupid? I see a negative trend in loan losses. Where is the state regulator? Where is the federal regulator? Where is the credit union internal auditor? Something is not kosher here.
ReplyDeleteFrom what I hear Loan Admin is pushing hard to keep collections and MLOs under their umbrella even though it’s a complete failure
ReplyDeleteThis is my understanding as well. The MLO’s I know would prefer being under the branch.
DeleteLoan Admin has become an arrogant bunch. Word of advice to LA, please stop telling us you worked in branches and know what it’s like. If you haven’t worked in a branch in the prior two years you have no clue what it is like.
Would love to know the facts that back this up
DeleteAt least mortgages are growing in volume.
DeleteIf loan administration keeps all the folks under their umbrella then Leigh has NO clue how things really are in the organization. Or she really doesn’t care and will just pad her 401k until more new board members are elected next year and she is let go. You'd think she would have seen the writing on the wall last month and started changing things after getting 3 new bosses.
ReplyDeleteLet not forget that LA, IT, and FAS are all part of the problem!
DeleteIT is not part of the problem. The myriad of non technical executives brought in to lead IT are the problem.
DeleteIT had/has a lot of problems, and needed to improve in several areas. Unfortunately, the wring person was picked to make those improvements happen.
Yes! Long-time ITer here. The entire IT leadership needs to be changed out except perhaps digital.
DeleteWhat is FAS and why is it a problem?
ReplyDeleteFinancial Advisory Services. These employees are supposed to sell insurance and investment accounts. I would be shocked if they had enough business to pay for a third of their positions.
DeleteOne of the FAS employees that works out of my branch is driving us crazy to (basically) do their job. I'm sorry. I'm a teller. I don't get paid to do your job and mine, too. Not meaning to be a "Negative Nancy" but it's annoying they want us to push their services. If I remember correctly, it used to sell itself and we didn't need a separate entity (FAS) to help people with wills or other financial planning needs.
DeleteNot to mention, they come in at 9 am and leave at 4pm. And when they choose to work from home, our FAS specialist leaves to pick up their child from school. Good for them, but branch staff definitely don’t have the same flexibility. And now we are having our Flex Time taken away? Without any additional compensation given? Next thing we know our jobs will be on the line too.
DeleteWorth pointing out this is a pretty ignorant take. Their are 241 FAS employees and over 4000 branch employees. What you are being asked to do as a teller is simply identify when insurance, investments, estate planning or retirement planning could provide a solution to the member. It’s a way of being the trusted financial resource to ALL members. FAS employees are there to provide service and assistance on the most complex financial services SECU offers. They are not asking you to do their job. Also many of them when working from home are doing CEs or calling their many lists they have to call. You should no presume to know a job until you have done it. If you care about the member and their financial success, getting that member to the FAS rep is the most important part of your job.
DeleteDon't know about you, but if I were a teller, i sure wouldn't refer a member who trusted me to a FAS employee with the above ("ignorant take") attitude. Not anybody I would trust.
DeleteBTW what do the "numbers" - funds under management, etc look like for the Investment/brokerage service ("FAS")....what have been the "results" since say 2021? As "good" as on the credit union side?
DeleteAssets under management for investments appear to have grown from 1.5 billion in 2021 to 2.1 billion as of Oct 2023. Giving the members higher returns with the addition of fixed income products, a dedicated advisor, and keeping their funds with their local credit union. All while charging a super low advisor fee. Lower than "industry standard"
Delete@ 8:07 You’re right in providing a platform for the member’s financial needs to be addressed in all aspects; even those that are far outside the realms of my knowledge and require a FAS. However, I cannot in good faith advise our membership to use our FAS services until it becomes worth our member’s time to do so. Have you ever actually gotten an auto/home/life insurance quote? It’s laughable. Like almost double what I am currently paying and no difference in coverage. I get better, quicker, and more confident service on anything regarding an IRA, including but not limited to retirement planning, from our very knowledgeable employees in IRA services. The things that our FAS employees are having mini-meetings with us on are all things I’ve already learned through taking modules.
DeleteBranch employees are also having to call members on our delinquency, NSF, Neg dd, etc. reports. And we are having to do cornerstone. Doesn’t mean we get to leave early or get preferential treatment and pay.
Working on CE from home and calling lists? Sounds tough!
Delete@1:54 valid concern regarding the auto and home insurance. I do believe they are working to increase carriers to offer better rates. Branch employees are allowed to take laptops home to work from home to work those lists. Thats sounds like a management issue if you arent afforded that opportunity. I'm sorry if you have been told otherwise by your manager. Thats not a FAS problem.
DeleteThose assets under management also grew during that time frame in what is the second worst bear market of the past two decades. A real credit to the FAS employees doing right by the members.
DeleteTo mention insurance. Yes sometimes rates are not great but each carrier has a different risk appetite. For some members those premiums are incredibly competitive, and over the past year we have seen a real increase in homeowners policies written.
We never had these problems in the 90s. Stupid internet
ReplyDelete