... losses continue to move,
in the wrong direction.
We've talked over the last few days about the really bad lending (RBL) which has been introduced at SECU over the last three years.
Again, in the past, lending was viewed as a cooperative effort between the member and the SECU loan officer, both had the same goal and purpose - a prudent, productive loan. The credit union loan officer should seek only to make a sound loan which is of benefit to the member - and which will be repaid without hardship by the member.
✅ The latest quarterly numbers have been announced by the National Credit Union Administration (NCUA), the federal regulator for credit unions. The news is not encouraging and confirms once again that much is amiss with SECU Board lending policies.
While total loans outstanding have increased around ten percent over the last 12 months to $33.87 billion, loan losses and delinquency have spiraled upward faster - seemingly beyond control. At March 31, 2023, SECU loans which were 60 days or more delinquent totaled $294 million. The 60 day delinquent total one year later at March 31, 2024 was $700 million - up 138%. Loan losses also have risen to $72 million for the first quarter of 2024, up by 50% (from $48 million) over the first quarter of 2023.
The $72 million in loan losses is the highest level of quarterly losses ever experienced by SECU.
SECU is simply making more and more bad loans. Who is making these decisions?
... Really Bad Lending or Reckless Board Leadership?
