... The SECU Boards approves the financial goals for the Credit Union. And, should monitor staff performance against those standards.
✅ Lets see how the Board and Executive Leadership Team (The ELT) are doing:
We talked in the last post [link] about the mis-performance in lending losses and delinquency which are SECU Board "Key Ratios". Three other key ratios also tell a costly story.
But first remember, SECU has borrowed $5 billion from the Federal Reserve without a clear financial reason, other than profiteering. The effect of that borrowing is to increase SECU actual "assets" from @ $50 billion to $55 billion - which falsely "inflates" these ratios. Why? Because that $5 billion loan must be paid back to the Fed at the end of 2024. (The interest SECU paid on that Fed loan in the first quarter was $59,479,452!... which will be @ $240 million for all of 2024!)
So, we need to adjust the assets down to the legitimate $50 billion before "figurin'" the real ratios:
- Capital to Assets: real ratio @ 11.1% not only above the Board approved 9% key ratio target, but even outside the Board approved range! If the Board had met its 9% target, an extra $1 billion could have been paid out to members via better rates on your savings accounts.
- Expense to Assets: real ratio @ 2.35%, well above the SECU Board target of 2.00%, and not declining as inferred! Based on historical SECU expense levels of 1.85%, these extra operating expenses are costing you over $200+ million annually.
- Asset Growth: The real "chuckler" in the bunch! The assets of SECU were $50.775 billion on March 31, 2023 and were $50.872 billion at March 32, 2024 - a growth of @$97 million over the last 12 months. That's a real growth rate of @ 2/10ths of a percent, not 10.04%! SECU members have actually withdrawn @10% of their deposits over the last "new/new" 3 years!
... why have "key ratios" if the Board and ELT are going to ignore them?
