In these turbulent financial times you can take comfort in the safety and soundness of SECU. There are many reasons for our strong financial position.
Quality Loan Portfolio
We have a high quality portfolio of member loans. We made no "interest only" or "exploding rate" subprime loans to you. You know that we would NEVER put
you in such products! We exist to serve you; not to prey upon you with products which would cause you harm. As a not-for-profit, financial cooperative we
exist to improve the lives of your family and children.
Conservative Investment Portfolio
We have a safe, conservative investment portfolio comprised of fully guaranteed U.S. Treasury Securities and insured NC Student Loan Bonds. We have never
invested in subprime mortgage backed securities - never! We invest in you -- our members -- by making loans to finance homes and cars and to help educate your children.
We make no tricked up loans and own no fancy or dangerous securities.
No Debt
We have no debt -- none. But if we needed additional funds to help you, we have lines of credit that total over $6 billion. We have $2 billion available to lend to
you today. Our membership is stable -- teachers, state employees and their families. We make no commercial loans. Our loan delinquencies, loan losses and
foreclosures remain low. The majority of member loans are secured by assets located in North Carolina -- a state that continues to do well despite the weak housing market.
Extensive Regulatory Oversight
We have scores of folks looking over our shoulders making sure that we remain secure (auditors, examiners, state and federal regulators, independent CPAs, internal auditors and
others). We just received "clean opinions" on our audits -- that's 30 years in a row. We end the fiscal year with high quality loan and investment portfolios. We have taken the
precaution of building up loan loss reserves that total over $100 million, just in case they are needed. We also have $1.1 billion of additional capital reserves and federal
insurance on member deposits -- all available to make sure that the Credit Union remains financially secure. A family of two can structure account ownership to obtain as much as
$600,000 of federal deposit insurance ($1.4 million for a family of four) through the National Credit Union Administration (an agency of the federal government). For more information
click on the text "This Credit Union is federally insured by the National Credit Union Administration" at the very bottom of the SECU website.
An insurance calculator tool is available from NCUA if you would like to determine your approximate insurance coverage.
Financial Data
November 30, 2008 Financial Data
State Employees’ Credit Union (SECU) remains in excellent financial shape. Assets, loans, deposits and capital all grew substantially while delinquencies remained under control. Loan losses are at historic lows despite the current economic environment. A brief summary of financial highlights of the first eleven months of this calendar year follows:
November 2007
November 2008
Change
Additional Information
Assets
$15.2 Billion
$16.8 Billion
+$1.57 Billion
10% Growth
Loans
$10.9 Billion
$12.1 Billion
+$1.24 Billion
11% Growth
Deposits
$14.0 Billion
$15.5 Billion
+$1.42 Billion
10% Growth
Capital
$1.09 Billion
$1.24 Billion
+$150 Million
14% Growth
Loans/Deposits
77%
87%
10% Higher
Members are borrowing.
Net Charge Offs to O/S Loans (July through November)
0.10%
0.10%
No Change
Loan losses are the same as one year ago and remain very low.
90 Day Delinquency
0.28%
0.47%
0.19% Higher
Delinquencies are slightly higher than same period last year; but
are still below ½%.
Net Income
(January through November)
$61 Million
$124 Million
$63 Million Higher
Net income is 103% higher for the first 11 months of 2008 vs 2007.
Expense to Assets
(July through November)
2.15%
2.17%
0.02% Higher
Operating expenses remain well below the peer industry average.
SECU has a high quality loan portfolio, no hybrid subprime loans (we would never put our members in that type of loan!), a safe investment portfolio (U.S. Treasury securities and federally insured Student Loan Bonds), strong earnings, substantial loan loss reserves and capital, no debt, large, unused lines of credit, federal deposit insurance, a stable membership base (state and public school employees and their families) and a 70+ year history of looking after our members while remaining financially safe and sound.
June 30, 2008 End of Year Financial Data
We closed our seventy-first year of business on June 30, 2008 and the results are excellent. Member assets grew by $1.5 billion to $16.5 billion between June 2007 and June 2008. Loans increased by $868 million to $11.4 billion. Deposits grew by $1.4 billion to $15.2 billion. Net income increased from $43 million to $105 million. These results are outstanding. SECU remains on solid financial footing. Your Credit Union remains safe and sound and stands ready to help you in these troubled times.
Thank you for your support and thank you for your contribution to the success of your Credit Union. Additional information is available in our 2008 Annual Report. SECU’s financial condition is provided each month on the back of your Grassroots newsletter.
