SECU Board: Business/Commercial Lending - Going For The Gold?

   ... What have we got to lose? 

😎 If a lack of experience and expertise qualifies a credit union to be a business/commercial lender, then SECU should be wildly successful!

If, as it appears, there is a continuing struggle to control delinquency and charge-offs at SECU ; then, what could possibly go wrong with jumping into the more complex world of commercial lending? Well, there might be a few risks - and consequences - case in point:

✅ Two CUs Now Own Former Fruit of The Loom Plant After Loan Goes Bad [link CUDaily]

"Vidalia Mills [Louisiana] owed approximately $32.5 million to Jefferson Financial Credit Union and Greater Nevada Credit Union. At auction the highest bid was $1,005,000, which was lower than the appraised value of $1,193,000."

How did a $600 million credit union - a strong school employee focused credit union (originally Jefferson Parish School Employees) in Louisiana - come to partner with a Nevada credit union to lose $30+ million on a start-up denim plant? Want to know? [link] - read it and weep! 

"Others were more skeptical of the mill housed in the former Fruit of the Loom facility. To be a  fully vertical denim mill with in-house spinning requires a right-sized facility and a knowledgeable workforce at each stage of production, not to mention cash. Pete Roberts, the founder and CEO of Origen USA said. Vidalia lacked it all."[link]

When you lose $30 million bucks "swimming with sharks" in commercial lending waters, well beyond your depth, there are consequences. Especially when your loan loss reserves are only @$6 million and total net worth @ $40 million!  

😎 As you see, all it took - as quoted - was "a board open to progressive thinking" misled by a CEO to match - both evidently of the "We Are" type.

✅ Consequences?:

"The Board of Directors, Leadership Team and Employees of Jefferson Financial FCU are excited to announce that the JFFCU membership successfully approved the merger with Keesler Federal on May 21, 2025."

😎 Translation: Jefferson Parish School Employees Credit Union is burnt toast!  Hubris has its price!

What have we got to lose? Well...  the credit union, perhaps!

SECU Annual Meeting 2025: Significant Member Resolutions?

    ... asking for the moon?

Ms. Mona Moon

Chair, SECU Board of Directors

August 15, 2025 

Dear Chairman Moon,

I would like to follow up and ask if significant SECU member resolutions may be included in the Notice of the 2025 Annual Meeting which will be sent to members on August 29, 2025? [link to your prior member letter].

Significant resolutions from the floor were prohibited by the SECU Board in 2024; a change which was not in keeping with the prior history of the SECU Annual Meeting. Though not a great fan of that prohibition, it made sense in three important respects: 1) there is not sufficient time for review and discussion of significant issues at the Annual Meeting, 2) the vote of the limited number of members at the actual Annual Meeting might not be representative of the opinion of the larger 2.9 million membership, and 3) member resolutions should be limited to issues ("significant") involving the governance of SECU - not operational issues, which are the responsibility of the Board.

Realize that the rules and agenda of the meeting are not as yet set; but thought it would be important to have significant resolutions on governance sent to you and the SECU Board in advance, for review and publication to the full SECU membership - their consideration and feedback remains important.

Look forward to your response. Have also sent copies of this request to our CEO, Ms. Brady and to our Chief Legal Officer, in case this request should more appropriately be routed to one of them.

Thank you.

Sincerely,

Jim Blaine, SECU Member

mona.moon@board.ncsecu.org Leigh.Brady@ncsecu.org>,  CATHY.PLAUT@ncsecu.org

 

 

  "Don't worry if you're making waves just by being yourself. The moon does it all the time."