RALEIGH, N.C., Nov. 18, 2014 (GLOBE NEWSWIRE) -- SECU, the $29 billion not-for-profit financial cooperative manages a $16 billion loan portfolio of high quality with strong loss reserves available as a prudent measure to protect members. SECU lends only to its members and most loans are for the purchase of homes, vehicles and other consumer related activities in North Carolina. Funds for loans are provided solely by the savings deposits of other SECU members, as the Credit Union has no debt or borrowed funds.
SECU's Allowance for Loan Loss account balance was over $212 million as of the fiscal year-end June 30, 2014, which provides conservative reserve funding seven times the most recent annual loan losses of the Credit Union. At fiscal year-end, 90-day delinquency at SECU was less than one percent (0.99%), and fiscal year loan losses were less than $29 million, representing less than two-tenths of one percent (0.18%) of outstanding loans --- three to five times lower than credit union peers and ten times lower than bank average loss rates!
CliftonLarsonAllen, LLP (CLA) was recently engaged by State Employees' Credit Union (SECU) to review the Credit Union's Allowance for Loan Loss (ALLL) reserves methodology. CliftonLarsonAllen agreed amounts in SECU's financial statements as of June 30, 2014 and confirmed "the key factors and assumptions that management used to develop their ALLL," making the determination that "they are reasonable in relation to the consolidated financial statements as a whole and are in accordance with GAAP."
Chief Financial Officer Mike Lord states, "SECU is pleased that CliftonLarsonAllen's review confirmed the methodology that SECU uses to maintain a well-funded Allowance for Loan Loss reserve account. SECU fully underwrites and services our member loans. Retaining member loans in our portfolio and utilizing branch staff resources to handle any member problems which arise has afforded SECU the opportunity to develop innovative lending products which are highly beneficial and cost effective for members. Having strong loss reserves provides an additional layer of prudent protection for the Credit Union. Our members deserve consumer-friendly, fairly priced loans to meet the needs of their families in North Carolina. The consistently low levels of delinquency and charge-offs at SECU, as confirmed by CliftonLarsonAllen, validates that SECU's member-focused approach to financial services truly does "make a difference."
A not-for-profit financial cooperative owned by its members, SECU has been providing employees of the State of North Carolina and their families with consumer financial services for 77 years. With more than 1.9 million members, SECU provides services through 254 branch offices, 1,100 ATMs, 24/7 Contact Centers and a website, www.ncsecu.org.
CONTACT: Leigh Brady, EVP - Organizational Development Office: 919-807-8347 Mobile: 919-327-8869 firstname.lastname@example.org
Source:State Employees' Credit Union(SECU)