RALEIGH, N.C.–Leigh Brady, president and CEO of State Employees’ Credit Union, has issued a statement clarifying comments she made during an earlier interview with CUToday.info.
The statement follows a demand for a retraction by the wife of the former CEO of the credit union related to what occurred during SECU’s annual meeting.
Brady had earlier said that 28 of the 32 members who stood up at the credit union’s large annual meeting to voice their concerns over SECU’s move to risk-based pricing were not expressing their own opinions, but instead had read statements provided to them by Jim Blaine, the well-known and outspoken former CEO of SECU, who strongly opposes pricing loans according to risk.
The statement appeared in an extensive story in CUToday.info regarding the divide over the issue at the credit union and in the community.
“I’m writing to address a statement I made in October which was published in CUToday following the Annual Meeting of State Employees’ Credit Union (SECU),” Brady said in an updated statement. “My good faith understanding that one party drafted comments for speakers to deliver at our Annual Meeting was incorrect. Since the meeting, I’ve learned the speakers drafted their own unique comments or concerns with various SECU initiatives, strategic changes, or strategic objectives for the future. I have heard from and talked to some of the speakers directly and want to publicly apologize to all of the speakers for my misstep in commenting that they were provided remarks by a third party. I also mistakenly said 28 of the speakers were SECU retirees. That number was incorrect as well.
“My job and that of the executive team and management, along with the Board of Directors, is to move the organization forward in an effort to meet the changing needs of the membership, mitigate the ever-increasing risks to the organization, and position the credit union for the future,” Brady continued. “We are working hard to do just that and will do so thoughtfully with all our member-owners top of mind.
“Thanks to CUToday for keeping readers informed of the current and future ‘happenings’ in the credit union industry.”
The statement and clarification followed a letter sent by Jean Blaine to Brady and the SECU board demanding a clarification for the comments made in the story on the response to the lending policy change at the $50.67-billion State Employees’ CU.
Jim Blaine, who has been a consistent critic of risk-based pricing, argues it disadvantages members who aren’t A-paper and says the flat-rate model has worked for SECU for 50 years.
But Brady, who was named CEO in mid-2023, and Jim Hayes, the former CEO who exited the world’s second-largest credit union just a year after coming on board, have both championed moving to risk-based pricing, saying the credit union has missed substantial loan volume because A-rated borrowers were going elsewhere for lower rates.
Issue Comes to a Head
The issue came to a head at SECU’s large annual meeting in October at which three incumbent board members were ousted by three challengers. As CUToday.info reported here, during that meeting several-dozen members stood to voice their concerns over the changes to loan pricing.
A video of the meeting can be viewed here. The member questions began at the 1:29:50 point.
In her letter, Jean Blaine wrote, “We all understand that you did not listen, that the Board did not listen to the members’ remarks. Your disregard of members’ comments prevents your Board from hearing the members’ very real concerns about the direction in which you are leading our Credit Union.
“How do you explain the completely unheard of removal by SECU members of three incumbent SECU Board members?” the letter continues. “If this slander is part of your explanation you are leading your Board in the wrong direction. It is not too late— Go back. Listen to what the members said at the Annual Meeting. Correct the course of SECU.”
After telling Brady she has “two months to take restorative action,” Jean Blaine concludes, “You must know by now, “You can’t shut us up and you won’t shut us out.”
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