About That SECU 2022 Annual Meeting Resolution...

    What really happened?

 

The unvarnished truth is that in 2021 the SECU Board of Directors - and their new, highly improbable choice for CEO - created their very own, "new/new" version  of ...

Credit Unions And The Tax Exemption... What Would You Say?

    Death and taxes?

😎 Been hard to watch while credit union trade associations struggle to explain why our exemption from income taxation is still deserved.

✅ Here take a moment, as a credit union member, and write down your "1, 2, 3" reasons why your credit union should be tax-exempt, while commercial banks shouldn't. Will be interesting to see what you come up with!

Sometimes it helps to know what "our critics" say about the credit union tax exemption. One of the long-time, leading voices on national tax policy is the D.C.-based The Tax Foundation. They've been around for over 85 years and are not some "fly-by-night" organization, nor "in anybody's pocket". But, that doesn't make them right, either!

"The Tax Foundation is the world's leading nonpartisan tax policy 501(c)(3) nonprofit. For over 85 years, our mission has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity."

"Our vision is a world where the tax code doesn’t stand in the way of success. Every day, our team of trusted experts strives towards that vision by remaining principled, insightful, and engaged and by advancing the principles of sound tax policy: simplicity, neutrality, transparency, and stability."

One does not have to agree with The Tax Foundation on its conclusions. But it is usually wise to at least consider what they say, when formulating your arguments for preserving the credit union tax exemption. 

Here's what the Tax Foundation has to say about credit unions [link]... it leads off with "Key Findings", if you don't want to wade through the whole piece.

✅ Still deserved?  If so, why? If not, why?

 

  If you don't like paying taxes, "raise your hand"!

N.C. Credit Union Laws And Regulation: Is "H.187 - CU UpDate Act" Looking To The Future ... Or Just "SOSO"**?

✽ North Carolina state-chartered credit unions are monitored and regulated  principally by two agencies: 

   

   ... the legal regulator under N.C. law.

  

    ... the Federal insurance regulator.

✅ Under the new Administration in D.C, the NCUA recently "welcomed several surprise visitors":

"CUToday [link] : "ALEXANDRIA, Va.—The Department of Government Efficiency (DOGE) entered NCUA headquarters Thursday, CUToday. info has learned. As CUToday has reported, the Trump Administration has charged every government agency with reducing expenses, and has been discussing combining federal regulators."

✅ CEO Dan Schline of the Carolinas Credit Union League (CCUL) theatrically continues to yell "🔥 Fire 🔥" in the NC Legislature that "North Carolina CU statutes have not been updated since 1975" (not precisely true, but makes great headlines!) In fact, the first four pages of the nine page  H.187 bill involve opaque scribblings increasing fees & penalties, reporting requirements and expanded authority for the Administrator over credit unions [here take a look].  Is more regulation the "answer" for North Carolina at this time? Is that why North Carolina credit union laws need an "Update"?

😎 You might want to take a look at the just released 2024 Annual Report of the CU Administrator [link]. It contains some interesting information. The total number of state-chartered credit unions has plummeted to 29 (as a result of merger and liquidation). Six of the 29 credit unions suffered a financial loss in 2024 (none major nor of concern).  The CU Division appears to have at most 10 employees to supervise and examine state-chartered credit unions with $59 billion in assets - including the $53 billion at SECU.

In the past, North Carolina had three financial institution regulators - the Commissioner of Banks, the Savings and Loan Division, and the Administrator of Credit Unions. When mergers and liquidations resulted in the decline in the number of S&Ls, the S&L Division was merged into the Commissioner of Banks. 

That combination of agencies strengthened the expertise and examination resources available, created greater efficiencies by consolidating duties, and reduced the pace of escalating costs.

😎 Should our Legislature take a deeper look - before adding on greater fees, penalties and control authority - at what type of "CU Update" is really needed?   

... after all credit union laws "haven't been updated since 1975".

** "SOSO" - Same Old ,Same Old.