Friday, May 10, 2024

BusinessNC Weighs In On The Financial Performance Of SECU... And a "Leap" Of Good Faith!


BusinessNC has been the "go to" source for tracking the trends, triumphs, and transgressions of the North Carolina business community for over 40 years [link]. 

SECU made the headlines this week, with an interesting "twist" - an update "clarification" from the reporter, based on comments from SECU.

  From BNC: "The State Employees’ Credit Union is reporting more delinquent borrowers as it boosts its lending."

"The Raleigh-based institution said loans more than 60 days late surged 49% to $700 million, compared with $470 million a year earlier. More than three-quarters of the late payments were tied to home loans, with used-vehicle loans making up most of the balance."

"SECU said about 20,650 loans were delinquent, about 5,500 more than cited in its 2023 first-quarter report filed with National Credit Union Administration regulators. Net charge-offs increased 50% to $72 million during the quarter, versus $47.5 million last year and $20 million in the same period in 2022."

"(A previous version of the story reported a higher level of delinquencies of at least 60 days, cited in the credit union’s federal regulatory report. But that reflected a regulatory reporting quirk related to the number of days in February 2023 (28) versus February 2024 (29).)" [read the entire article here]"

😎 An interesting "tale"! And not to doubt that in explaining the facts to the reporter, that folks were "speaking in good faith"; but sometimes they are not exactly precise on "full disclosure". For a more accurate comparison - rather than blame it on a leap year "quirk" lets take a look at March, 2022 - a non-leap year - and even 2021 when all this startted!   
😎 The SECU 60+ day delinquency on the March, 2021 Call Report was $210 million. 
     The SECU 60+ day delinquency on the March, 2022 Call Report was $216 million. 
     The SECU 60+ day delinquency on the March, 2023 Call Report was $470 million.**
     The SECU 60+ day delinquency on the March, 2024 Call Report was $700 million.
** as now "restated" by SECU to BNC - up from $297 million on the official report.
If you would like to confirm that the problem is real, compare the December, 2023 Call Report (just 3 months prior) with the December, 2022 below:
 ✅ December 2023 Call Report - 60+ days = $753 million
              [look at the "gray" column on right]


✅ December, 2022 Call Report - 60+ days = $556 million