Thursday, February 27, 2025

Raeford, North Carolina - A Financial Desert ?

https://www.weather-forecast.com/locationmaps/Raeford.10.gif 

Remember the BusinessNC article on SECU published way back on February 1, 2023?  In the article, the executive leadership team (the "ELT") at SECU put forward Darrin McNeill, as a member who desperately needed business/commercial services from SECU.

😎 The implication then was that Mr. McNeill lived in some sort of financial desert there in Raeford, NC.  Thought it might be wise to take a little closer look at that claim.

Darrin McNeill is the owner of Serenity Therapeutic Services, a 150-employee mental health services company in Raeford and a 33-year SECU member. A very successful entrepreneur! He said in the BNC article: “I feel I’ve never received the type of service from [other lenders] as I have from SECU.”  

Is it too impolite to point out that "some local bank" has been helping Mr. McNeill become successful in his business over the last 33 years?

SERENITY THERAPEUTIC SERVICES' home office is located  at 207 S. Stewart St, in Raeford, NC.

Don't know about the quality of the service at the banks in Raeford, but  there are at least 4 banks within @ 1 mile of Serenity's home office [link], not exactly a financial desert, right .. .

Lumbee Guaranty Bank - Harris Ave (distance: 1.1 mile)
Truist Bank - 207 S. Main  (distance: .3 mile)
Fidelity Bank - 112 US-401 (distance: 1 mile)
PNC Bank - 201 N. Main (distance: .2 miles)
AgCarolina Farm Credit [link]
USDA Rural Development [link] Lumberton office
SBA [link] NC Wilmington

North Carolina bankers have always claimed  that commercially-oriented credit unions would use their tax exempt advantage to under-price banks on the cost of services...and of course in "business", cost and expense control are king - price matters! 

One of the banks in Raeford is Lumbee Guaranty Bank [link] which is the first Native American bank opened in the U.S. - just celebrated its 50th anniversary! An institution of which all of North Carolina should be proud.

Lumbee Guaranty Bank serves this economically challenged area with 14 local branches in North Carolina small towns like Maxton, Rowland, Red Springs, St. Pauls, Fairmont - where expansion maddened SECU, for example, does not have branches.

Lumbee Guaranty Bank's business/commercial services are extensive and look fairly priced [link].

Does SECU intend to "under-price" Lumbee Guaranty Bank to attract business accounts?  Open branches in Maxton and Rowland - didn't see it mentioned in the "SECU Strategic Plan"!)?
 
😎 Nothing like using one's massive financial clout and tax-preferred status to threaten the financial viability - without good reason - of the premier (locally-owned, locally focused) Native American commnity bank in the USA , is there!  
 
 Is that really what North Carolinians want?

The statement that small business owners in all areas of North Carolina - "Tier 1" (like Hoke and Robeson counties) or otherwise - do not have access to financial services is.... [you fill in the blank!]
"Making it up" ... doesn't make it true.

16 comments:

  1. running out of content? SECU grew over decades by carrying low capital, instead giving it back to members in better rates and fees. Leveraging both the tax exemption and the right mission. This took loans, deposits and customer away from banks from all shapes and sizes. Now, talking about a 2 year old article, you your criticize us for something we're not even doing, and that we're going to threaten the financial viability of a bank? Really?

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    1. 2:08pm Content still abundant! Not too difficult to find a new surprise at SECU ...

      This commenter reminds me of a gerbil in a circular wheel cage... running fast but not going anywhere much.

      First example, "...grew by carrying low capital... better rates, etc" that's true, but what the commenter doesn't fathom is that running a credit union with the lowest possible reasonable capital is one of the two ultimate measures of management effectiveness in a credit union... the other is the expense ratio - efficient management of operating costs. SECU is not winning the race anymore on either front under "new/new".

      "Criticize us for something we're not even doing." Our CEO announced at the last annual meeting that she is working hard on making this mistake... any reason to doubt what our CEO says at an annual meeting?

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    2. 9:57pm "... So point is it's frivolous to suggest we don't compete with banks."

      Ever notice that you won't find that idea in your charter, your bylaws, your, mission statement or even in that marvelous strategic plan?

      Could it be that you're missing something? Perhaps something really important, the bigger
      picture?

      What if you really just don't "get it"...condider the record since 2021.

      And BTW from your comment, "... to suggest we don't..." Who is "we"?

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    3. So if we don’t compete against banks and for that matter other CU’s, where did our 5 billion in deposits go? Under the mattresses of our members? Why has there been extensive discussion about non-competitive deposit rates? Explain that.

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    4. 2:00pm Again, who is "we"? Astute enough to answer a core question?

      The $5 billion left (thanks for acknowledging that !; @ a 10% drop in assets; first yoy decline in assets in SECU history), because the rates, services, and performance at SECU had become - in some members minds - mediocre.

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    5. We = the credit union / cooperative.

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    6. 8:01pm Nope, that answer is what was feared. Think you got that wrong. Give it a little deeper thought. Try again!

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  2. This is interesting stuff. Please do a deeper dive.

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  3. article may be old but the just Introduced House Bill 187 which is only being pushed to serve ONLY SECU!

    The brag it will help state chartered CUs open safe deposit boxes. Wake up they have offered these for years. When you have to lie about the benefits you are clearly trying to hide something!

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    1. Just read it, looks like it provides eligibility to individuals and families that earn income at or below the federal poverty threshold. Also, persons residing in census tracts in North Carolina where the center of population as defined by the United States Census Bureau, is more than 8 miles from a bank branch. I do not think this opens the flood gates for open membership unless I missed something. The average person would not even know that living 8 miles from a bank branch would make them eligible.

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    2. "I do not think this opens the flood gates for open membership unless I missed something."
      drip drip drip ....

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    3. So read page 7 where it changes "common bond" to common bondS". The "S" then allows any Field of Membership to include ALL of those provisions listed below it. Re-read it with an AND at the end of each designations. So a credit union can have a geographic area AND a specific employer in their FOM. Which opens up the field of membership.

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  4. There are plenty of places in northeast NC that do not have nearby access to a financial institution, or much of anything else for that matter. In some cases, SECU is the only thing around. Now that LGFCU is separating, even more people will be left without a local financial institution.

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    1. 7:34am Can you help the rest of us by naming those "plenty of places"... having difficulty matching up your statement with the actual facts. Thanks, your info will be very helpful.

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    2. 7:34am Also, last time I checked LGFCU is not going away. Come June according to LG, everybody ('cause anybody can easily join LG) in NC will have a new, better "independent" choice for credit union services than SECU ?

      LG claims 13 branches already, one of the first in Ahoskie (i.e. "northeast NC"!).

      Wouldn't it be reasonable to state that SECU members "stuck in those NC financial deserts" will, as of June 2025, have another brand new second choice for service?

      Hadn't thought about that? Might want to start comparing LG rates with SECU rates... your share deposits might be at risk.

      Also, in case you hadn't thought about it, current SECU members can join LG for better rates and services but also continue to use the 275 SECU branches without cost.

      Bottom line? That former Chair's "no formal proposal proposal" will cost SECU @$80 million in service income annually when LG departs. 'Course his statement in the Fireside chats was that wouldn't "significantly affect" SECU.

      $80 million is no longer "significant" to SECU? Nah, can't be true, more hyperbole...think he was just "putting on airs" once again.

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