... about that little $5 billion loan.
😎 SECU in the News! BusinessNC editor, David Mildenburg, again spotlights SECU's federal trough - all you can eat - "buffeteering" [link to story here].
✅ One last note on: The Bank Term Funding Program (BTFP)
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Historically, handling the "Cash" needs at SECU (for branches, ATMs, day-to-day transactions) is a pretty predictable business - much like your personal checking account. You're rich on payday, then start sinking back toward reality as the month advances and the bills come in. Next payday, you start the same cycle all over again! Same with SECU; the "flow" of funds is well understood, predictable, manageable.
According to the 12/31/2023 SECU financials (above), the Cash on Hand at 12/31/2023 was $458 million, about the same as the prior year end 2022 ($461m). And if you must know, $434m at 12/31/2021.
The size of the credit union hasn't changed; so if, $5.3 billion in "Total Cash Reserves" (see above) was sufficient in December, 2022, why does SECU need $7.6 billion this year? Why is that additional loan interest cost being paid on the $5 billion Fed loan - rather than to members? Not to mention that at 12/31/2023, SECU was sitting on $12 billion in government securities which can easily and immediately be "cashed in" if funds are needed.
Is the SECU $5 billion loan "typical" for large credit unions?
✅ All U.S. Credit Unions - $25+ billion in assets at 12/31/2023:
1) NavyFed (Va) ( Charter#: 5536) Fed line of credit: $32 billion Amt. borrowed: $0
2) SECU (NC) (Charter#: 66310) Fed line of credit: $6 billion Amt. borrowed: $5 billion
3) PenFed (Va) (Charter#: 227) Fed line of credit: $3.5 billion Amt. borrowed: $0
4) BECU (Boeing) (WA) (Charter#: 62604) Fed line of credit: $728 million Amt. borrowed: $0
5) SchoolsFirst (Ca) (Charter#: 24212) Fed line of credit: $3 billion Amt. borrowed: $0
😎 If, as SECU claimed, "we needed the money".... then Whassup?**
** The cost of borrowing $5 billion for one year at @ 4.50% is $225 million!
... Sure it isn't a little game of "fleece and 'flate"? As in "Fed and assets"?
we needed a funding lifeline from the feds?
ReplyDeleteWilly-nilly. Chicken Little leadership. NO coherent policy or course of action. Certainly not managing SECU for people of modest means--90% of the membership and certainly most state employees. Not managing it well for any member. #4 more in 24!
ReplyDeleteHow does the credit union plan to pay the loan back?
ReplyDeletewell that's where the members come in ....
Deleteno free lunch no matter what anyone tells you
DeleteWith the investments the loan proceeds purchased.
Delete"With the investments the loan proceeds purchased."
DeleteWhich is the members money ... sorry SECU doesn't own anything the members don't fund!
Without members SECU doesn't exist!!!
Pretty simple concept ...
Repeat after me, 4 more in 24!
ReplyDeleteWhy stop there? Why do we need a board of directors anyway? Can’t we just have more “annual meetings” and let the members decide?
DeleteYes! These board members do not represent me! Obviously they don’t even care about me! And they seem to not be accountable in any actual
Deleteway! What members of the credit union are pushing for RBL? where’s that faction speaking out and pushing for that change? Oh, it’s just the board?! And top execs?! Seems fishy, don’t it?
One annual meeting per quarter. That would terrify the living daylights out of them
DeleteThe phrase a "quarterly annual meeting" is as hilarious as a "non-profit bank". Another oxymoron... but maybe "more moronic" is where we are being led!
DeleteThey either want to sink this place or sell it. No In between….Southeast Credit Union is their goal folks. They don’t want you to retire here or be able to feed your families. They don’t care. They want to fatten their wallets.
ReplyDeletethe unspoken 'Plan'
Delete‘Despite the impression that the overall economy appears to be doing well, there are many North Carolinians still struggling.’ says SECU.
ReplyDeleteGreat quote, SECU! So why charge them more on their loans with RBL?
because 'They' ain't struggling so the he!! with the members ... who do they think they are anyhow?
Delete@10:39. SECU is contributing to North Carolinians financial struggles by outsourcing jobs. A LOT of SECU jobs have left NC.
DeleteGot an uneasy feeling the rules will change & 4 new directors will not happen…no way they can allow it
ReplyDeleteYup. On paper they should lose. But we know the government and these fools work. They will do everything they can to change the rules and rig it. There is no way they should even come close. Ain’t nobody on board with this board.
Deletehave the 3 newbies done anything?????
ReplyDeleteBeing it is 8 against 3…whatever they think, say, suggest will be overruled by the 8 bullies, because that is what they have proven to be, bullies
DeleteIf they try to change the election rules AGAIN at the very last allowable minute, I hope the three will speak out publicly against the corruption. We did it in 23. We CAN do it in 24. It is/was totally UNHEARD of to turn out the entire slate of incumbents. That NEVER happens. Nothing is different in 2024 at SECU-- it might be worse. Brady Bunch and Crazy 8 have dug in. Employees at branches, IT and call center are being pushed out deliberately so bankers can take the helm. and consultants, because this Bunch does not understand how to run this complex organization. They do not know.
DeleteIt would be nice to at least receive some sort of communication from the 3 we’ve elected. We put them there to be our literal eyes and ears for what’s going on behind closed doors of the board room. Time for them to spill the beans and tell us what’s going on.
DeleteDon't you think the legal team has lectured them on "breach of fiduciary duty" if anyone of them breathes anything that happens in a Board meeting. The Crazy 8 and Brady are just waiting for some such mistake so they can pounce and oust. Are you also criticizing employees for not speaking up? This October is crucial to turn our credit union back to its' stated principles. 4 more in 24 is the only way it can happen. Brinson, Fleming, Wooten and Williams have to go.
DeleteAgree 12:38, time to be bold and just tell us what is being discussed ... we as members have the right to know and we did get them where they are so we have their back!
DeleteIf the three can’t do what we elected them to do. In two years we can replace them too!
DeleteYou're being a pretty tough crowd. They've been on the job for all of 4 months and have much to learn. I don't think there is any doubt they hold the same principals that elected them in the first place. Little they can do till reinforcements arrive. And there's little to be gained by picking fights that are currently unwinnable.
DeleteI would like to see the bad actors and policies kicked to the curb yesterday but the truth is that is not going to happen yet. Patience Grasshopper.
Well when the employees speak up at their meetings about RBL and other bad policies, we can expect the 3 good guys on the board to do the same. It's been three years and the only way to see employee dissent is the blog and the 23 election. Don't criticize those 3 you guys. they are hanging on until there is some support.(4in 24) Just like us.
Delete