Tuesday, March 5, 2024

SECU Financials - 2023: Covering Your Assets (CYA)?

 https://images.saymedia-content.com/.image/t_share/MTc2MjkzNzczNzQyMDU2NjIx/checking-and-using-a-spirit-level.png ... Esse Quam Videri.

"To Be, Rather Than To Seem."

Mona Moon Image Stelfanie Williams Image Jennifer Haygood Image Chris Ayers Image Bob Brinson Image Mark Fleming Image  Ben McLawhorn Image McKinley Wooten, Jr. Image 

The "Legacy SECU Board" ("Remaining 8" pictured) has turned the Credit Union on its head since 2021. Most of their "industry standard innovations" ( a classic oxymoron!) have been poorly conceived, poorly executed, or both - from hiring, to RBL, to H410, to operational snafus, to midnight bylaw changes, wasteful "We-We" marketing, to verifiably "less than transparent" frankness with the SECU membership.

The "Legacy Board" evidently hopes that no one will notice the destructive brilliance of their leadership. Unfortunately, the SECU financials keep revealing some ugly truths. We've looked at the financials over the last few days [link] in terms of over capitalization (which prompts low savings rates), soaring operating costs, and the ridiculous "negative growth" [link] pronouncement. The Board seems affronted that members might have the audacity to challenge this record of mis-performance. The "We know best" attitude stubbornly persists. 

Lets look at one more issue which is costing SECU members tens of millions of real dollars - loan charge-offs. Losses on loans are a fact of life - bad things do happen to good people and bad decisions do occur. But, SECU has a strong record of prudently managing a diverse loan portfolio - and members equally have a strong record of repayment. But, losses have rocketed under the new policies of the Legacy Board:

Net annual SECU loan losses:

2020 $ 73.2 million

2021 $ 70.5 million

2022 $ 95.5 million

2023 $196.9 million

The Legacy Board took control with a new direction, new leadership, new policies, and that new "We-We" hubris in September 2021. Not sure how they will "explain away" a $100 million increase in loan losses - but it is definitely on their watch and the result of their leadership. 

And please don't "blame the Fed" while you're milking them with that $5 billion loan - that really would be crude! Can't wait to hear the CYA!

     ...  members paying an extra $100 million to become an "industry standard" lender?

It's your credit union, your loss, your choice... not "theirs".