RALEIGH, N.C.—Members of the $56.5-billion State Employee’s Credit Union have voted to re-elect four incumbent directors, Business North Carolina reported.
The results were announced this week at SECU’s annual meeting in Greensboro, N.C.
As CUToday.info reported, in July, the SECU’s board’s nominating committee recommended four incumbent directors be re-elected. That led to members nominating four other candidates, who expressed disagreement with SECU policies, largely the move to risk-based lending.
The incumbent candidates were: McKinley Wooten, an assistant secretary of the N.C. Department of Revenue; Bob Brinson, a retired state information technology employee; Mark Fleming, a retired vice president of government relations at Blue Cross Blue Shield of North Carolina; and Stelfanie Williams, a Duke University administrator, Business North Carolina noted.
The challengers were former SECU managers Susie Ford of Cary, Julian Hawes of Winston-Salem and Kirby Parrish of Johnston County, and Jean Blaine, Business North Carolina said.
“Jean Blaine is the wife of former SECU CEO Jim Blaine, who led the credit union from 1979 to 2015. Over the past two years, he has published a website critical of SECU’s board and leadership, emphasizing their decision to institute risk-based lending rates. The credit union had been among the few institutions nationally to charge the same rate on auto loans and other products, irrespective of a member’s credit rating or financial standing,” Business North Carolina noted.
Vote Count
The four winning directors received between 54,000 and 62,400 votes. The challengers received from about 22,000 to 32,000, the news outlet reported.
After the vote, SECU board Chair Mona Moon told Business North Carolina she didn’t know what to expect from this year’s election after members last year ousted three incumbents favored by the board. But she said the results showed the candidates were respected by members, who believed the board was listening to their concerns.
Last year, members elected three new directors, Michael Clements, Barbara Perkins and Chuck Stone.
Earlier this year, SECU reduced the number of tiers for loan rates from five to three, a response to criticism of the new policy. CEO Leigh Brady told attendees the move showed the board’s respect for members, Business North Carolina said.
Brady also said SECU is broadening its offerings while retaining its ethos as a not-for-profit, member-owned institution. It plans to offer its first rewards-based credit cards next year. One card will offer a rebate on spending for gas and restaurants, while another will offer a 1.5% cash rebate. It is holding off from small business lending, probably for three years, and has no desire to convert to a for-profit format, she said while answering questions submitted before the meeting. No questions from the floor were allowed at the event, which attracted more than 500 people, Business North Carolina reported.
SECU A ‘Commodity’
“Many now view SECU as a commodity,” Brady said. “We want to position SECU as the best option to meet their financial needs while protecting their data.” She said that fintechs and cyberattacks represent the biggest threats to the credit union.
During the question-and-answer period of the meeting, Brady said SECU charged off $23 million in the past fiscal year after 13,000 members defrauded SECU through a scheme involving Cash App, which allows people to pay bills digitally. Those members have been allowed to maintain basic accounts and can’t add other services until they repay the amount of fraudulent activity, she said, according to the Business North Carolina report.