Thursday, June 29, 2023

The "New/New" SECU - May, 2023 Financials 

  Baseline. Prior to September, 2021, SECU had an uninterrupted 85-year record of growth in assets and membership, un-besmirched by sanction or scandal. 

🔺No one should be surprised that the "New/New" financial trends at SECU continued in May:

Total assets - continued to decline dropping below the $50 billion mark to $49.88 billion - off $589 million in May alone.

Total deposits - same story, off - $500+ million from 4/30/2023.

Total loans - are growing, up $600+ million as the SECU Board continues to pursue a policy of overcharging 50+% of members, through the highly discriminatory risk-based lending (RBL) policy. 

🔺The greater concerns remain in the substantial failure of SECU to meet Board-approved budgetary targets, specifically in the areas of operating costs and delinquency/chargeoff controls.

✔ SECU will end the 2023 fiscal year (Tomorrow! - 6/30) @ 15% over the SECU Board's budget target ("2% of assets") which equals @ $75 million over the mark. Of greater significance is that actual 2023 operating costs of @ 2.30% of assets are 24% higher than SECU's traditional operating cost range of 1.86% of assets (see SECU Board approved scorecard below). Folks that 24% increase in the operating costs of SECU is costing you $220 million more every year. Are you seeing that much increase in benefits and service quality from your credit union? 

You already know the story on delinquency and charge-offs, which have soared in an improving N.C. economy.  The problem was not "The Fed" or some other concocted excuse to avoid the admission of mismanagement. Suffice it to say that charge-off levels for 2023 will be at least twice (which is tens of millions of dollars) the levels experienced since the "New/New" started weaving its magic less than 24 months ago.  

✅ To refresh your memory, here is the SECU Board's own "performance scorecard" from March, 2023. Delinquency/charge-off losses have soared and SECU operating costs ("expenses to assets") remain highly elevated over historical operating norms.


...while the SECU Board remains deathly silent, the numbers speak for themselves.