Yet Another Milestone!
... Highest Ever!!!
✅ The "We Are SECU" Board now leads its peers (other large credit unions) in average loan losses and charge offs (CO's). From lowest to the highest on record in two short years!
Year-ending SECU CO's Ratio Peer CO's Ratio
2008 .13% .79%
2009 .20% 1.16%
2010 .23% 1.10%
2011 .26% .89%
2012 .29% .71%
2013 .21% .52%
2014 .20% .45%
2015 .26% .42%
2016 .33% .47%
2017 .40% .50%
2018 .45% .48%
2019 .43% .46%
2020 .30% .46%
2021 .20% .19%
2022 .35% .24%
2023 .62% .43%
... "We" finally caught up and here's all it cost you in 2023 as a member-owner of SECU!
✅ Net annual SECU loan losses in real, hard-earned dollars:
❋ 2020 $ 73.2 million
❋ 2021 $ 70.5 million
❋ 2022 $ 95.5 million
❋ 2023 $196.9 million
... "The We" play, you pay; thank goodness for Risk-Based lending!
the board and mgmt is more worried about election changes ... isn't it obvious?
ReplyDeleteIt's like worrying about the deck chairs on the titanic ...
I mean if we don’t tie the deck chairs down people might use them as flotation devices when the ship sinks.
DeleteI thought you wanted more money in members pockets. Looks like $196 million went directly there in 2023. SECU’s losses are the members gains (for lending charge offs at least).
ReplyDeleteThought everybody would like to see this comment; another example of that overweening, little "attitude problem". Those nasty, no good members - they are such a bother!
DeleteThe best way to avoid loan losses is for SECU Loan Administration to stop approving bad loans. Hard to argue with that truth, isn't it?
The "We" and L.A. have adopted lending policies which have made losses increase by @ $125 million last year and are on track to have losses soar to over $250 million in 2024.
It's not the members who approved the bad policies and the bad decisions, which are causing the way above industry standard losses.
Who is accountable for making bad loans at SECU these days? Mirror, mirror...
"Who is accountable for making bad loans at SECU these days? "
DeleteNobody, that's why they continue ... now let's have some 'industry standard' and see someone or more be held accountable and get fired!
@6:59: That's a completely ignorant comment. Industry standard would remove the ability to actually make decisions. Loans would be decided by software. How about let's look at the products and the limitations placed on lending officers. Then tie all of that in with the lack of sufficient training. The decisions behind those things should actually prompt the firings, if any.
DeleteWell. It's obvious when the new/new took the reins!! THEY must be sooooo proud of themselves. These numbers are proof that the swamp needs draining now!! Numbers never lie..
ReplyDeleteThis is really worrisome to see this trend...going in the wrong direction in so many important measures. I'm very anxious about the quarterly financial statements. Capitol is excellent, but I still wonder when the examiners will start to worry a little. .
ReplyDeleteShould any of this surprise us? I mean these are the folks who hired Gym with his track record of failure. They are just living up to his standard of mediocrity.
ReplyDeleteFull speed ahead ...
Could Covid extensions be responsible for the snowballing of charge offs? Loans that would have been charged off during covid added to the the current chargeoffs in 2023/2024? Would explain the industry average sudden increase as well.
ReplyDeleteI've always hoped that the pandemic was a big part of the explanation - kudos for all SECU leaders who found a way to weather that storm! Remarkable performance! . Seems to make sense... give 'em a break, difficult times!
DeleteBut all CU's faced the identical pandemic problems, yet SECU keeps escalating loan loss levels above its peers... something else is causing the problems at SECU... bad policy, RBL, bad execution????
I don't know, but L.A. is faltering at great costs to both staff and members.