The asset slide continues...
SECU March, 2023 April, 2023 1-month Change
Total Deposits $46.478 bil. $46.122 bil. (down -$356 mil.)
Total Assets $50.775 bil. $50.474 bil. (down - $301 mil.)
Year-over-year deposits (April, 2022 vs. April, 2023) are down $2.9 billion (-5.93%). Year-over-year assets are down $ 2.36 billion (-4.47%). For the first 4 months of calendar year 2023, deposits are down $552 million and assets are down $496 million.
This Board's strategic plan calls for an 8% asset growth target for fiscal year 2023, which ends 6/30/2023. You'll note above that with 2 months remaining, actual asset growth is -12.47% below the strategic plan target.
SECU March, 2023 April, 2023 1-month change
New vehicle loans $ 944 mil. $ 965 mil. up +$21 mil.
Used vehicle loans $ 2.723 bil. $ 2.756 bil. up + $33 mil.
It is harder to analyze SECU lending with limited data. The vehicle lending at SECU is the only lending sector currently affected by discriminatory risk-based lending (RBL). Overall vehicle lending was up by @ $54 mil month-over-month, which seems to be in line with recent monthly growth - no apparent surge in A-paper activity as yet, but it is probably too soon to tell. Without question RBL is overcharging the majority of SECU members who have lower credit scores. Mortgage loans - without RBL - showed the strongest growth - +$220 mil.
One interesting note is that the total loan interest earned on all SECU loans in April, 2023 - vehicles, mortgages, credit cards, unsecured, etc (a total of over $30 billion in loans!) - was only $632,000 higher than in March, 2023. That small positive gain was easily offset by a $3 million increase in the provision for loan losses in April, 2023 over March, 2023. Loan losses continue to advance as a result of the centralization of collections snafu of 2022. Total loan losses almost doubled to $95 million in 2022 and have reached $60 million in just the first 4 months of 2023.
As shown above, this Board's strategic plan budget remains +14% over target (2.28%/2.00%) - that's about $140 million over budget. Most of the overrun appears to be in the seemingly inexplicable explosion in staff from @ 6,800 to @ 8,000.
As a member, well... thanks a yacht!