... strategically planned?
Then perhaps, think again?
SECU Quarterly Financial Progress
[MMSA rate: 1.0% raised to 1.1% October, 2023]
Quarter : 9/2022 12/2022 3/2023 6/2023 9/2023
Deposits: $48.1B $46.7B $46.1B $44.9B $44.5B ⬇
Assets: $52.1B $51.0B $50.8B $49.6B $49.2B* ⬇
* after adjusting for a $1.5B borrowing
✅ The cost of operating the Credit Union is targeted by the Board at 2.00%of assets.
✅ At 9/2022, the expense ratio was 2.06% (up substantially from prior years) or $802 million (ytd).
✅ At 9/2023, the expense ratio had climbed to 2.33% or $889 million (ytd) - up an additional $87 million ⬆, and @ $165+ million over the Board's budget target. ⬆⬆⬆
... SECU financial forecast for 2024?
Looks like... more of the same - much less for more!
How much is your retirement package costing SECU annually Mr Blaine?
ReplyDeleteOnly on-going benefit - that I'm aware of - which SECU retirees receive is medical coverage (same coverage as active employees, same deductibles/copays). Retirees - as with active employees - pay part of the premium cost and fully pay for any partner/dependents cost.
DeleteThere is no on-going "retirement package" as all SECU employees participate in a 401-k plan while working, and SECU contributions end when the employee retires.
At least while I was there all employees received the same benefits options - Including the CEO (me) and all other Exec/Sr. staff.
Did SECU ever offer a pension?
DeleteSECU employees were part of the State retirement system until 1983, when all "non-state employee groups" were kicked out due to changes in Federal pension rules. That's when the 401-k was introduced at SECU. Some long-term employees were given the option to remain in the State system, but those retired long ago. I was not one of them
DeleteHow about deferred compensation?
DeleteThere is a cap on the amount any employee can contribute to a 401-k (believe the cap was set@ 15/20% of the median US wage)., with the employer being able to match to an aggregate cap - think it's up to over $60k+ now. SECU generally matched the employee contribution 2 or 3 times to one to encourage employees to save for retirement - a good idea!
DeleteWhile I was working the employee federal max cap ranged from @ $7K ,to @18k when I retired. %-wise I was prevented by the max cap to contribute a similar share as other employees. The Board mitigated this max limit by estimating the standard employee match I would normally have received and added it as deferred compensation - over the years it would be @ $50k per year. The deferred compensation was closed out including the 401-k participation in 2016 at retirement. There have been no "retirement packages" etc, - nada - since 2016. So no, none in on-going retirement benefits since retirement, same as other retirees.
Sorry, complicated but had several anonymice persisting in asking that question - you know who!
DeleteSo no 457b plan in addition to 401k?
DeleteSorry, nope: no 457b nor 123XYZ, or 456ABC - nada. There was a 457B program available to staff members, but I never participated.
Deletenow your turn .... lay it all out we'll be waiting....
DeleteAs a long time Member and in reference to @8:56pm and all those snarky previous one line questions...Move On or crawl back under your rock. You are wasting our time!
DeleteThe recorded history of growth, strength and service State Employees' Credit Union experienced over the many decades proves retired CEO Jim Blaine earned every penny he was ever paid by the membership for his service and leadership. His service, pay or benefits are not at question here - the real questions and concerns we as Members have are about the present and future state of our credit union.
If you @8:56pm are a part of the present Administration, we as Members are more interested in hearing those answers. Be productive, earn the salary and the benefits we are paying you!
in reply to 7:44 AM, my remark was for the person who was 'giving' the snarky remarks and not directed at JB... I thought that would have been easily deciphered since JB laid it all out to witness. One of the pitfalls of technology. My days as a long term employee ended when these folks hijacked the CU. Sorry didn't mean to get you all riled up...
DeleteIt's hard to sit back and watch the destruction ...
ReplyDeleteOf course 'they' don't see it that way.
SECU- There Was a Difference!
Question: Are there 11 current board members or 8?
ReplyDeleteAs I recall 3 had stepped down awhile back leaving 8.
Then the 3 new members were voted in.
Does that mean we still have 8 or 3?
When I look on the SECU website all I see are 8 smiling faces ... (not current board).
https://www.ncsecu.org/AboutSECU/BoardofDirectors.html
There are 11 SECU board members.
DeleteThe three did not step down, we voted them out. Perkins, Clements and Stone are the challengers we voted in.
DeleteBlame “transitory” inflation; everything costs more now.
ReplyDeleteNever mind about board members question, I see where 3 members just weren't in the picture .... thanks
ReplyDeleteI'd like to make a comment regarding the automated loan decisions versus the loan officer making the decision. This was mostly a fair lending issue and needed to be resolved. Loan officers had too much decision making power based on their opinion or whatever local rules their vp/svp came up with. Yes they know the members best and should be able to approve members that don't qualify on paper. However, time and time again I saw loans being declined because "we dont do christmas loans" or "the member doesn't need a $10k lawn mower" even though they qualify and could just apply for a credit card and do whatever they want with it. The loan officers and local management dug their own graves on that one. Requiring the need for automated underwritting.
ReplyDeleteValid concern, but there is another side to this idea. Will talk about dealing with the fairness issues around rbl more next week. For now you should know that loan offers still have the ability to turn down a loan regardless of credit score. Did you know that? So that "grave digging" potential unfairness still exists! What do you think about that?
DeleteWhile any loan officer can deny a loan, there is a group that reviews all denials meeting certain criteria and recommends reconsideration on some. Not fool proof, but a good process that began under Mike Lords time as CEO.
DeleteI would agree with more local, but not sure that “more impartial” is true. People in your community may be more likely to show partiality to their “local” neighbors regardless what the facts are. Especially if the applicant looks like them.
DeleteSo, what's wrong with that? Isn't that what Haze/Brady and this board did? they are designing a system at SECU that "Looks like them". Elite, high income, A paper---everyone else pays for them. The credit union was established to serve people of modest means, because no financial institution catered to that group. Who will now serve people of modest means? Loan sharks?
DeleteMaybe I’ve missed something but have people been complaining about automated approval of loans? That was around when Mike Lord was around and Approving officer can still approve a loan that wasn’t automatically approved and loans that are automatically approved can still be declined
DeleteCorrect, the automated approval system is setup to approve the no brainers. No loans are automatically denied. The loans that are not automatically approved are still reviewed by loan officers. This is something that is more unique to SECU. Other lenders auto deny. Auto approvals make it more convenient for people applying online and even in the branch. As someone else mentioned, all denials are then reviewed by a set group to see if there was any inconsistency with the denials and if it should have been approved per the set policies. This is setup to address fair lending regulations. Many of the processes and policies that people are relaying that they have a problem with are changes that were made for regulatory and compliance reasons. NCUA and federal requirements change over time and policies and procedures have to change also to adhere to them.
DeleteWhen the tsunami of losses hit, please compare automatically approved loans from 2023 to past years. Decisioning engine had to have been tweaked.
Delete7:22 AM - got it. You want SECU to make less loans to non-A-paper.
DeleteWhat could go wrong increasing the unsecured limit to $50,000? Couple that with ending the gravy train of "free money" from the COVID handouts that went on longer than necessary. Add to that people have to pay student loans now with the money they used to go finance a vehicle they couldn't afford. Just wait for the increase in numbers 6 months from now.
Delete@8:03pm. Yes there has been a consistant theme of comments saying " put the loan decisions back in the loan officers hands" from the sound of it, denials are not automatic so I would imagine those comments are based on the automatic approvals. Which was needed due to loan officers making lending decisions based in their personal feelings or beliefs. I would argue that its much harder now to decline a member who qualifies for a loan, regardless the purpose specifically. A team to review denials then make a "recommendation" doesnt resolve fair lending concerns if a member can walk into two different branches and get different decisions.
Delete@9:03 I could be wrong but I think that has more to do with the limits put on E-Tier borrowers than automated approvals. Automated approvals in my opinion are a great way for SECU to get more competitive when it comes to speed of loan decisions for members with good credit
DeleteWhile SECU poses as a working-class financial institution, they are beholden to a class of ultra-wealthy insiders. Their partnership is what allows these elites to grow their wealth and power.
ReplyDeleteThe membership just 'donates' to their causes!
Thanks for those figures. Transparency and truth is what I want as a member owner. There has been increased spending in the past 2+ years and asset growth is down. Now they are going to implement RBL throughout and have the members pay for increased spending. The truth is they are not putting members first.
ReplyDeleteTransparency and truth are definitely important. Don’t necessarily agree that increased spending means members aren’t being put first. Members have always paid for expenses - it’s their institution and their expenses.
DeleteSome truth in that, but know of no one one who wants to pay too much unnecessarily. Would you do so ? Its "their expenses" but tt
Deletehey're being billed for the cost and have not been shown the benefits - not only include $200+ million in additinal annual costs, a 1.1% non-competitive savings rate, higher loan rates for most, and a perceived decline in service.
I’m getting an average of 5.3% on my money at SECU right now.
DeleteThat's a great rate! But thousands of members with over $20 billion on deposit are getting only @ 1%!
DeleteSince SECU has an email newsletter now, do you think they should email members recommending they switch to the 5.3% CD? Or just ask permission to do it for them?
"Members have always paid for expenses - it’s their institution and their expenses."
DeleteMaybe normal expenses, but one example would be the $6.5 million buyout for the Gym guy that the board wanted. 'They' can pay for that! There were several qualified executives for the CEO job. They just didn't fit with the exploitation these board members had in mind.
"I’m getting an average of 5.3% on my money at SECU right now."
DeleteAin't getting that now, best you can do is 5.1%.
And that is only on a 12 month CD... and it seems to go down every month. Guess it's nice to tie all your money up in one CD... and still have money for everything else life throws at you.
Your privilege is glaring ...
Leigh has mentioned liquidity multiple times. What is the danger zone for Credit Union liquidity? I'm guessing that's something NCUA monitors?
ReplyDeleteGood question, will talk about it next week. SECU is highly l"iquid" which is a great thing. Helps assure SECU remains safe and sound.
Delete10% in liquidity is considered highly liquid. SECU is highly liquid.
DeleteWhere did that # - 10% - come from? The regulators?
DeleteWhere did the additional 87 million go? What was it spent on? Like, serious question. I don't see anything in my day-to-day work that could explain it. Is that all just going to third party vendors? For stuff we used to do in house?
ReplyDeleteThat trip to Hawaii couldn't have been cheap!!
DeleteHow has the expense ratio changed (if any) since Hayes left?
ReplyDeleteStill @ 2.35% of assets where traditionally it has beem @ 1.85% , in other words up by about $250 million annually (.5 x $50B in assets=$250M). BTW that historical level of @ 1.85% always included normal cost increases, inflation, expansion, salary increases etc. So those factors many of you mentioned arenot new or different in last 2 years.
DeleteSeveral "yes butts" have jumped in to say that things are "different" now - costs, inflation etc. True in a limited sense, but not over the last 25 years. 4% or 5% inflation is not the exception , it's the norm over time in the US
DeleteBut the easy way to win the argument is to actually compare cost categories side by side and see where those dollars actually got spent - instead of somebody making bold, unsubstantiated statements - right? And SECU has the "numbers"!
So just ask as a member for an accounting of how your money is being spent. Then we'll all know for sure what we're talking about, won't we? Any harm in that?
Why make this post if you are unable to provide facts as to why expenses have gone up? Get gullible folks to jump to their own conclusions?
DeleteGot some merit there! I can provide the comparison if you wish, but wouldn't it make more sense for the Credit Union to provide its member/owners with that information?.
DeleteWhat is the harm in SECU being transparent?
That's been a growing concern for many members over the last 12 months.
It would take the very astute SECU finance staff perhaps 30 minutes to publish the data - they already have it!
What is more important than correctly informing us "gullible folks"? We're willing to hear the truth directly from SECU - aren't you?
I would love to hear the truth from everyone instead of both sides of this thing making posts and trying to catch each other saying something wrong.
DeleteI definitely agree. SECU has the exact numbers, why guess? Just be transparent at the source.
DeleteSECU had never posted that level of detail. Why post online like this? Why not just walk into a branch and ask? Or email info@ncsecu.org?
DeleteJim Blaine is putting his name on his comments. But you will notice that the other side is too ashamed to own their remarks. the true indicator of what is wrong. Why won't they share their data? Why won't they show the membership the presentation that convinced the board to go all in on RBL? It must have been brilliant and highly persuasive. I bet it would sway all of us. Why doesn't the board try it, instead of saying "WE are SECU and WE know best." Looks like the
Delete"Royal WE" from here.
Says the person who …. Didn’t put their name on their comment
Delete"SECU had never posted that level of detail"
DeleteThere's a lot of things SECU has never done ...
like RBL for example ... that's just ONE example ...
paying 6.5 million for a CEO is another one ...
IT is burning through money with vendors. A bonfire of money and mistakes in a void of leadership. The vendors are salivating. They are asking themselves how did we get so lucky.
ReplyDeleteSECU has Truth decay .... and it ain't getting any better.
ReplyDeleteWe've already had 3 'root canals' ... looks like 4 more are in order!
It's painful and expensive, but it's necessary if you want to get the infection out of the system!
DeleteSECU's largest expense is staffing. Just ask the current CEO and she will confirm that fact. Under Jim Hayes staffing increased by approximately 1,000 employees. Several new departments were created (none that directly serve members). Many new management and executive level employees were hired from outside SECU in an effort to bring in "better talent". While overall staffing was increasing, branch staffing levels were reduced by about 30%. Seasoned branch employees saw the writing on the wall and moved to specialized positions or work from home positions. Fewer branch employees and less experience has led to some service issues. Branch employee are trying, but they are a product of the environment that the executive team created. Hayes is gone, but staffing remains high across the organization. Have these new internal depts made us more efficient? Are they beneficial to our members? And, better yet, how will the CEO respond to the bloated staffing in operations?
ReplyDeleteWhat about marketing? How much has been spent on advertising? We survived 85 years with just word of mouth advertising. Too many internal departments are over staffed with high level positions snd are being overpaid. And how about Loan Administration? Talk about overstuaffed and way too many bosses in places. Put MLOs and collections back in branches under branch managers and if people want to continue to work from home, let then work for MSS.
DeleteHow many higher ups have been hired from out of state in the recent 2 years? Does SECU pay for their travel to NC?
DeleteOur branch - well established in current location - used to have 20+ employees prior to Hayes and the work from home recruitment. We operate now with 15 most days, sometimes as few as 12, with usually 2-3 tellers where there used to be 6-8. Lines are long and people are frustrated. Teller turnover is high and who can blame them? They are hired in and then no career path or opportunities for advancement due to “no promotions”. The front line of member service has deteriorated and no one from the upper level of management seems to care!
DeleteWill be interesting to see if the CEO is willing to follow her own plan of doing more with less . Everything points to that concept needing to start with SECU's Admin and Operations. Why were 1000 positions added and we still can't talk with anyone at the credit union about a home construction loan?
Delete"Many new management and executive level employees were hired from outside SECU in an effort to bring in "better talent""
DeleteThis ain't no "Dream Team" ... trust me ...
Most of these folks were a bankers who can't do a damn thing themselves so they contract everything out! Gym was tainted from the start.
If they were so great their previous employer would have NEVER let them leave.
You come in and the first thing you do is throw everyone under the bus? Banker mentality, they think highly of themselves yet it doesn't show in actual improvement of the organization (just the opposite) ...
It's been 2 + years and I see and hear nothing good is happening. Next year will be a pivotal year for SECU. Times are getting tougher if you've been paying attention. The writing's on the wall ... the fact is things are getting worse at SECU not better!
There Was a Difference but no more. You are now just like every other financial institution under the sun!
Look at Andrew’s Federal Credit Union branches on the inside. It’s just teller pods, kiosks, and a couple of computers set up in the lobby for a member to use. That’s the goal folks! To reduce the expense of hiring YOU! They want branch service to suck so whenever this NCR technology arrives they will roll it out and replace YOU!
DeleteAgreed, way too many "new" departments with top heavy management/high salaries, but not adding any value to the organization. Looking at you marketing/culture. I'd like to see how these departments have benefited SECU so far. Has marketing increased the growth of SECU? Pretty sure thats the point of a marketing department right? Have more members used a service or product that they have had specific marketing campaigns? Has there even been any marketing campaigns? Lets throw some money at actually helping members(branch staff, tax prep, mss, training!)
DeleteNCR technology will wipe out branch staff. Mark my words. That’s why every branch is awkward and short staffed the past couple of years. They are getting geared up to rollout this technology that will send you home packing because they won’t need you anymore. It’s all about money folks. They don’t care to see people retire here. They want them to walk, retire and never come by while they rollout NCR.
Delete"That’s the goal folks! To reduce the expense of hiring YOU! "
DeleteFolks we have a winner!!!!
Wait a minute! What is NCR technology? It sounds like you are talking about the no teller you talk to a video screen? I'm a member. Is this what you are going to do? Is this where SECU is going? Please explain NCR technology. I think I need to start looking for somewhere else to go
DeleteNCR is the partner for the digital platform replacement, nothing to do with replacing branch services in any way.
DeleteAll this is a horrible way to waste a beautiful weekend. And, as you see the back and forth between anonymice and yes butt commenters - including me - doesn't improve the analysis much of whether operating costs are reasonable and under control.
ReplyDeleteWould be far better for the SECU Board to direct the Accounting staff and CEO to analyze costs by operational segment and explain/justify the changes in costs over the last 3-4 years. Easy enough to do.
Would be wise for the Board to share that analysis openly with the membership and staff for review also What harm could come from that?
Shouldn't the CEO and accounting staff have been doing something more constructive than all this over the weekend?