Probably Going To See Some Fireworks Around "Independence Day"!

   

         Will be fun to watch?!? Probably not...

😎 Mind if we take a little break from all that politico stuff? After awhile, it gets a bit e-r-r, well...taxing! 

Back on the home front, June 3rd is the day that major, #1 snafu - the infamous "no formal proposal proposal" - comes home to roost. Local Government FCU will officially go its own way and become CIVIC FCU - they call it "Independence Day"!. Lets hope the separation goes well, as over 400,000 LG/CIVIC members will be affected.

Once the two credit unions get beyond "I Day", expect some "trouble"! Call it what you will -  human nature, sibling rivalry, managerial egomania - but the stage has increasingly been set for a little "turf" warfare. 

Best example? Take a look at the new savings rates recently posted up by CIVIC compared to SECU's rates. While you look remember that everyone in North Carolina can become a member of CIVIC - including every SECU member!

✅ Certificates of Deposit Rates*

 Term                 SECU Rate      CIVIC Rate      Min. Deposit

 6 months              3.90%                  4.35%               $250

12 months             4.10%                  5.50% (!)           $250

18 months             4.40%                  5.50% (!)           $250

24 months             4.40%                  4.35%                $250

30 months             4.00%                  4.19%                $250

36 months             4.00%                  4.19%                $250

48 months             3.75%                  4.25%                $250

60 months             3.75%                  4.30%                $250

* Red indicates better rate .

At 3/31/25, SECU held @$15 billion in member certificates of deposits ("CD's") of which 2/3rds - @$10 billion - was invested in those shortest term 6 & 12 month categories.

✅  MMSA - At 3/31/2025, SECU held @$16 billion in daily withdraw-able money market savings accounts ("MMSA") at 2.02%. CIVIC has posted a rate of 2.10%

✅ IRA's - At 3/31/2025, SECU held @ $3.3 billion in daily withdraw-able individual retirement accounts at 3.05%. CIVIC just posted 3.56%.

CEO Leigh Brady's questionable claim at the last Annual Meeting of superior SECU savings rates appears to be under direct, highly visible attack. Assume that this is entirely coincidental and unintentional, but wouldn't bet on it. Rather suspect the fight is on!

But before you go moving your money around, remember LG/CIVIC has its challenges too. 

If this turns into a "messy divorce", it's the members and front-line staff who will suffer most. And, while LG/CIVIC is safe and sound, the credit union operated "in the red" in both 2023 and 2024. Its largest ever quarterly loss to date was in the just completed first quarter of 2025! 

Are LG/CIVIC members going to cheerfully accept losing complete access to the 275 SECU branches? Also, it appears that LG/CIVIC members wanting to deposit cash are being directed to Walmart for that service! That's kinda like being forced to give up your home washer and dryer and told to get happy doing your clothes at the laundromat! And of course, it should be mentioned that most LG/CIVIC members are, if dissatisfied, eligible to become members at SECU (if they haven't already!). "Changing sides" can work both ways! Gonna be interesting... 

😎 Shame about all this and that "no formal proposal proposal"... but at least it was anticipated, well thought out, and approved in our "Strategic Plan"! 

It was... wasn't it?

 

 

 

Credit Unions: The Politics Of Pass/Fail...

   Future getting testy?

✅ Most SECU members received an email from our CEO, Ms. Leigh Brady, requesting that we write our elected representatives about preserving the tax exempt status of credit unions [May 1, 2025 at 6:58 PM]. Political pundits call this type campaign "astro-turfing" because its manufactured - not really "grassroots" politics, but...

Yesterday Todd Harper, former Chair of federal regulator NCUA, didn't mince any words [link]. in pointing out his view of the growing array of failures by credit unions to stay on mission - "People Helping People". Even some state legislatures have begun curbing the tax-exempt status of local state credit unions [link].

😎 What has caused this apparent "change of heart" among our political leaders and seemingly among the public - and many credit union members? Is it that...

A: ◻ Credit unions are using member money to buy multi-million dollar naming rights to stadiums and Super Bowl ads?

B: ◻ Credit unions are using member money to buy commercial banks nationwide at prices above book value? [link]

C: ◻ Credit unions are often circumventing legal restrictions in order to serve anyone and everyone - including major commercial corporations?

D: ◻ Credit unions now hold twice as many commercial loans as member credit card loans?

E: ◻  'Credit unions no longer stand for cooperation, service, and economic justice; the political class knows the truth, can smell the rot?" [link]

F: ◻ Credit union democratic practices and member participation are being marginalized, often eliminated?

G: ◻  Credit union members can no longer tell the difference between a bank and a credit union?

H : ◻ The Carolinas' Credit Union League (CCUL) has pledged to the North Carolina Legislature [as with H.410 in the prior session!] that H.187 is just "a minor Update"?

I: ◻  All of the above?

 

Once "anything goes"... "everything goes"!

 

Well, Since You Asked...

  .... Looney Tunes?

 😎 Commenter: Anonymous May 1, 2025 at 9:01 AM

"I get the problems with H.187 and that pushing for it is asking for trouble right now, but why is there sudden concern over federal taxation? I don't remember the CEO of SECU ever having to send an email to everyone about that. What changed?"

✅ The Brookings Institution is a well-regarded, Washington, D.C. - based "think tank" which conducts research on  a wide range of political, social, and economic issues. They conducted a webinar this morning on credit union issues!

Thought the best answer for the commenter is to let you take a look for yourself at the many concerns credit unions are facing. You'll hear about the firing of two NCUA board members, lack of transparency, abusive overdrafts, purchases of banks by credit unions, off-mission marketing/naming rights,   weak leadership by CU trade associations, mergers, insider dealings, taxation, and the waning of political support as credit unions decline in public opinion . 

✅  Here's where you can watch (might skip over the first 20 minutes or so of introduction to save time): [link].  Good luck, ain't pretty.

😎 Probably much more than you want to know, but don't believe the "Nothing Really", everything's alright type commentary being put forth by our leadership in North Carolina - taint so!   

As you will see...

"What changed at SECU"?  Purpose.