... good news?
😎 This little back and forth broke out not too long ago over the rapidly rising level of loan losses at SECU, now exceeding "industry standards"! Check the July 3, 2024 post [link here] for the back story!
✅ Here's the exchange in the comment section:
•AnonymousJuly 15, 2024 at 6:49 PM
Charge-offs won't be $250 million in 2024. It's unclear how that
projection was derived. Rising delinquency is mostly a mortgage story.
Losses were high for unsecured, card and auto in 1Q, but 30-60, and 60+
delinquency dropped significantly in 1Q and that continues, and lower
charge off dollars will follow.
•jim blaineJuly 15, 2024 at 7:06 PM@6:49pm "Charge-offs won't be $250 million in 2024. It's unclear how that projection was derived."
SECU reported to the federal regulator that net charge offs for the 1st quarter ( first 3 months) of 2024 were $72 million.
4 quarters x $72 million = $288 million. (was trying to be nice by rounding down to $250 million!)
Very happy to be wrong on this estimate, I apologize.
✅ Here is SECU's official regulatory report on losses through 6/30/2024:
😎 Sorta hard to read, but the total charge offs for the first 6 months of 2024 were @$140 million compared to $97 million in 2023. On a net basis (after recoveries) the difference is @ $126 million in 2024 vs $85 million in 2023. Up @ +50%!
😎 So, staying consistent with the prior calculation the new estimate for 2024 would be: 2 (the first 6 mos x 2!) x $126 million = $252 million in loan losses for 2024.
😎 The reported net losses for the second quarter were $54 million. Another way to estimate would be to add actual $126 million + $54 million (est. Q3) + $54 million (est. Q4) = $234 million.
😎 This could be close folks!!! But do keep in mind - that under any circumstances - this will be the highest year for loan losses in the history of SECU - no guessing on that!
Still in the running... unfortunately!
Why "they" keep putting lipstick on that same old pig and expecting folks to fall for it is beyond me.
ReplyDeleteWhat's that definition of insanity? Doing the same thing over and over again and expecting different results...
"... the Nasdaq Composite confirmed it was in correction territory after a soft jobs report stoked fears of an oncoming recession."
ReplyDeleteReuters
(numbers don't lie, see above)
There's that 'R' word again ... it could get worse before it gets better. Luckily we live in a growing area but those things tend to trickle down ... and the ones that need the help the most are oftentimes overlooked ... pray for the leadership to understand they were given their position to help ALL member/owners, not just the few!
When you're losing, you go back to basics ... you have to work hard at it, nothing is given to you!