FINANCIALS
Priority One Credit Union's financials for July and August 2010 were made public a few weeks ago, but due to the amount of information we have to publish, we're only now making the financials available on this blog.
As reported in recent months, the credit union's spending on legal are astronomical while the spending on marketing, advertising and even promotional materials is paltry in comparison.
Under the current CFO, Saeid Raad, a lot less information is provided in the credit union's financials, confirming rumors we've heard that President Wiggington wishes to hide financial information because he's grown tired of being blamed for the credit union's decline.
During the month of August, the credit union reports a positive influx of money in the amount of $77,136, but as the President revealed in late June, Priority One has been forced to divest some of its new business which is generating profit though not from the acquisition of new business.
The credit union also reports having spent $40,925 on temporary staff. This confirms that Priority One is eliminating its full-time staff who are recipients of benefits and replacing them with part-time, temporary staff. Of course if they're not doing this, then President Charles R. Wiggington, Sr. is again manipulating reporting.
Delinquencies have also continued to increase as did charge-offs. In the meantime, consumer loan funding continued to decline. A larger number of consumer loans were also referred over to collection proceedings.
The credit union's net income continued to decline. As of August 31, 2010, it has declined to $159,345,474. As we've reported often, this amount must be further reduced by $10 million which represents the remaining unpaid balance due on the $20 million loan borrowed from the credit union's line-of-credit in mid-2008. The credit union's actual net income size is $149,345,474. The financial statements also confirm that during the month of August, Priority One paid $32,038 in interest alone.
However, what took us by surprise and we don't know why is their total amount of year-to-date spending on consultants which is reported at a whopping $136,514. Hasn't the President insisted over the past year that he's "streamling" and "working smarter"?
JULY/AUGUST’S (2010) FINANCIALS
July | August | |||
| Loans | $104,943,278.00 | $102,584,143.00 | ||
| Loan Loss Allowance | -$2,600,000.00 | -$2,611,525.00 | ||
| Net Loans | $102,343,278.00 | $99,073,618.00 | ||
| Accounts Receivables | $1,114,051.00 | $761,278.00 | ||
| Cash | $2,333,813.00 | $4,548,913.00 | ||
| Investments | $49,899,235.00 | $48,484,798.00 | ||
| Investments in Coop | $40,000.00 | $40,000.00 | ||
| Investments in FSCC | $24,000.00 | $24,000.00 | ||
| NCUA Deposit | $1,435,757.00 | $1,435,757.00 | ||
| Accrued Income | $495,429.00 | $5,047.00 | ||
| Prepaid Expenses | $397,934.00 | $555,518.00 | ||
| Assets in Liquidation | $53,601.00 | $370,394.00 | ||
| Other Assets | $0.00 | $29,336.00 | ||
| Sub-Total | $161,137,097.00 | $156,227,657.00 | ||
| Fixed Assets | $9,623,010.00 | $9,624,542.00 | ||
| Less: Accum Depreciation | $6,463,062.00 | $6,506,725.00 | ||
| Net Fixed Assets | $3,159,948.00 | $3,117,817.00 | ||
| Total Assets | $164,297,044.00 | $159,345,474.00 | ||
LIABILITIES/EQUITY
| ||||
LIABILITIES (only)
|
July
|
August
| ||
| Accounts Payable | $201,496.00 | $10,465.00 | ||
| Notes Payable | $10,000,000.00 | $10,000,000.00 | ||
| Accrued Expenses | $314,419.00 | $356,007.00 | ||
| Dividends Payable | $4,754.00 | $9,507.00 | ||
| Suspense Accounts | $0.00 | $0.00 | ||
| Other Liabilities | $13,384.00 | $16,859.00 | ||
| Shares | $142,839,076.00 | $137,946,538.00 | ||
| Total Liabilities | $153,373,129.00 | $148,339,376.00 | ||
| EQUITY | July | August | ||
| Regular Reserves | $5,458,592.00 | $5,458,592.00 | ||
| Undivided Income | $5,465,323.00 | $5,541,460.00 | ||
| Total Equity | $10,923,915.00 | $11,006,098.00 | ||
| Total Liabilities and Equity | $164,297,044.00 | $159,345,474 | ||
| Actual Value | $154,297,044.00 | $149,345,474.00 | ||
| OPERATING INCOME | July | YTD | August | YTD |
| Interest on Loans | $496,934.00 | $3,431,426.00 | $486,307.00 | $3,917,733.00 |
| Income from Investments | $97,619.00 | $765,978.00 | $87,296.00 | $853,274.00 |
| Fees and Charges | $271,032.00 | $1,660,125.00 | $275,961.00 | $19,365,085.00 |
| Miscellaneous Operating Income | $25,540.00 | $134,959.00 | $22,458.00 | $157,417.00 |
| Total Operating Income | $889,124.00 | $5,992,489.00 | $872,022.00 | $6,865,510.00 |
| OPERATING EXPENSES | July | YTD | August | YTD |
Employee Salaries/Bonus’ | $295,469.00 | $1,991,381.00 | $271,503.00 | $2,262,884.00 |
| Temporary Personnel | $7,133.00 | $35,897.00 | $5,027.00 | $40,925.00 |
| Payroll Flexible Spending Plan | $323.00 | $823.00 | $16.00 | $839.00 |
| Personal Time Off | $13,784.00 | $95,331.00 | $13,343.00 | $108,674.00 |
| Employee Pension Plan | $4,637.00 | $49,783.00 | $3,294.00 | $44,077.00 |
| Workers Compensation Ins. | $6,542.00 | $35,409.00 | $3,166.00 | $38,524.00 |
| Employee Medical Insurance | $23,121.00 | $204,555.00 | $15,985.00 | $148,094.00 |
| Medicare Expense-Employer | $3,949.00 | $30,897.00 | $84.00 | $5,495.00 |
| Social Security Taxes- Employer | $16,884.00 | $132,110.00 | $574.00 | $3,776.00 |
| FUTA Expense- Employer | $156.00 | $5,411.00 | $1,713.00 | $14,060.00 |
| SUI Expense- Employer | $1,075.00 | $37,202.00 | $2,285.00 | $18,260.00 |
| Life/Disability Ins- Employer | $1,738.00 | $12,348.00 | $1,530.00 | $115,792.00 |
| Credit Union League Dues | $2,285.00 | $15,976.00 | $15,646.00 | $125,045.00 |
| Membership, Dues, Subscription | $302.00 | $14,263.00 | $3,505.00 | $26,162.00 |
| Branch Lease | $15,646.00 | $109,399.00 | $7,562.00 | $33,530.00 |
| Property Taxes | $435.00 | $22,657.00 | $10,038.00 | $52,949.00 |
| Janitor Expense | $4,268.00 | $25,968.00 | $2,414.00 | $21,517.00 |
| Utility Expense | $9,346.00 | $42,911.00 | $15,197.00 | $118,659.00 |
| Building Maintenance | $2,087.00 | $19,103.00 | $323.00 | $10,732.00 |
| Depreciation-Building | $15,197.00 | $103,462.00 | $6,524.00 | $67,433.00 |
| Security Expenses | $1,393.00 | $10,409.00 | $28,648.00 | $223,757.00 |
| Printing Expenses | $4,178.00 | $58,909.00 | $10,729.00 | $105,598.00 |
| Telephone Expenses | $30,559.00 | $195,109.00 | $2,169.00 | $16,056.00 |
| Postage | $24,194.00 | $91,869.00 | $35,027.00 | $2,828,979.00 |
| Share Draft Expenses | $1,600.00 | $13,887.00 | $3,493.00 | $41,874.00 |
| Equipment Maintenance | $33,833.00 | $247,952.00 | $7,809.00 | $72,113.00 |
| Stationeries and Supplies | $3,883.00 | $38,182.00 | $28,466.00 | $259,939.00 |
| Surety Bond Prem/Other Insur. | $8,433.00 | $64,304.00 | $24,785.00 | $17,313.00 |
| Depreciation- Furn and Equipt | $29,618.00 | $231,473.00 | $25,052.00 | $122,458.00 |
| ATM Expense | $23,721.00 | $148,328.00 | $18,018.00 | $168,133.00 |
| Check Card Expense | $13,172.00 | $97,406.00 | $3,882.00 | $28,831.00 |
| Technology/ Computer Expense | $22,654.00 | $150,114.00 | $1,062.00 | $5,450.00 |
| Misc Bank Charges | $3,763.00 | $24,949.00 | $0.00 | $1,225.00 |
| Education Expense- Staff | $338.00 | $4,388.00 | $1,062.00 | $5,450.00 |
| Education Expense- Senior Mgmt | $0.00 | $1,225.00 | $0.00 | $1,225.00 |
| Education Expse- Superv Comm | $0.00 | -$2,153.00 | $0.00 | -$2,153.00 |
| Education Expse- Board of Direct | $0.00 | $929.00 | $0.00 | $929.00 |
| Training Expense | $0.00 | $14,665.00 | $854.00 | $15,519.00 |
| Advertising Expenses | $1,833.00 | $3,316.00 | $0.00 | $3,316.00 |
| Loan Promotions* | $8,409.00 | $42,258.00 | $2,228.00 | $44,486.00 |
| Promotional Items* | $0.00 | $1,282.00 | $0.00 | $1,282.00 |
| Member Research* | $0.00 | $0.00 | $0.00 | $0.00 |
| Operating Income |
July
|
YTD
|
August
|
YTD
|
| Ambassadors | $239.00 | $2,545.00 | $770.00 | $3,315.00 |
| Bus Development Expense | $70.00 | $2,512.00 | $20.00 | $2,552.00 |
| Collections Expense | $1,234.00 | $29,626.00 | $2,454.00 | $32,079.00 |
| Real Estate Expense | $0.00 | $0.00 | $0.00 | $0.00 |
| Indirect Dealer Fee | $0.00 | $0.00 | $0.00 | $0.00 |
| VISA Expense (????????) | $0.00 | $0.00 | $0.00 | $0.00 |
| Credit Investigation Expense | $5,505.00 | $36,032.00 | $6,216.00 | $42,248.00 |
| Lending Center | $3,564.00 | $24,991.00 | $3,500.00 | $28,491.00 |
| Lending Expense | $2,464.00 | $14,260.00 | $2,280.00 | $16,340.00 |
| Legal Expenses (?????) | $5,863.00 | $40,341.00 | $6,895.00 | $47,236.00 |
| Audit Expenses | $5,000.00 | $40,822.00 | $5,000.00 | $45,822.00 |
| Consultancy Fees (????) | $11,188.00 | $128,539.00 | $7,975.00 | $136,514.00 |
| Associated Manag Co. | $0.00 | $0.00 | $0.00 | $0.00 |
| Shared Branching Expense | $7,033.00 | $46,419.00 | $7,301.00 | $53,720.00 |
| CUSO Expense | $438.00 | $1,044.00 | $0.00 | $1,044.00 |
| Borrowers' Insurance | $0.00 | $0.00 | $0.00 | $0.00 |
| Dept of Fin Inst Admin Fees | $1,400.00 | $9,800.00 | $1,400.00 | $11,200.00 |
| Cash Short and Over | $53.00 | $1,885.00 | $12.00 | $1,896.00 |
| Intrst Borr $ ($10 million) | $33,038.00 | $225,940.00 | $33,038.00 | $258,978.00 |
| Annual Meeting Expenses | $0.00 | $0.00 | $0.00 | $16,716.00 |
| Board Directors/Supervisors | $1,173.00 | $7,468.00 | $1,067.00 | $8,536.00 |
| Annual Retreat | $0.00 | $16,716.00 | $0.00 | $0.00 |
| ADP Charges | $3,911.00 | $24,131.00 | $3,819.00 | $27,950.00 |
| Credit Union Car Expenses | $0.00 | $0.00 | $0.00 | $0.00 |
| Commissary | $408.00 | $3,904.00 | $146.00 | $4,049.00 |
| Mileage/Reimbursements | $1,527.00 | $17,161.00 | $1,761.00 | $18,922.00 |
| General Expenses | $2,345.00 | $46,126.00 | $2,563.00 | $48,689.00 |
| Courier Services | $4,500.00 | $46,523.00 | $3,647.00 | $50,170.00 |
| Storage Expenses | $3,030.00 | $20,117.00 | $3,373.00 | $23,490.00 |
| Branch Expenses | $0.00 | $0.00 | $0.00 | $0.00 |
| Other Losses | $6,414.00 | $62,033.00 | $10,169.00 | $72,202.00 |
| Merger Expenses | $0.00 | $0.00 | $0.00 | $0.00 |
| Succession/Strategic Planning | $0.00 | $1,345.00 | $0.00 | $1,345.00 |
| Ballot Incident Expense | $0.00 | $0.00 | $0.00 | $0.00 |
| TOTAL OPER EXPENSES | $736,447.00 | $5,259,982.00 | $699,654.00 | $5,959,546.00 |
| Provision for Loan Losses | $735,641 | $358,242 | $91,200.00 | $449,442.00 |
| NCUSIF Stabil Expense | $0 | $192,700 | $0.00 | $192,700.00 |
| Income/Loss Operations | $79,113 | $181,564 | $81,258.00 | $262,822.00 |
| Dividends Paid | $57,530.00 | $506,409.00 | $50,904.00 | $557,313.00 |
| Loss/Gain of Disp of Assets | $0.00 | $0.00 | $0.00 | $0.00 |
| Loss/Gain on Disp Invest | $0.00 | $815.00 | -$46,782.00 | -$45,967.00 |
| Franchise Tax Board | $0.00 | $0.00 | $0.00 | $0.00 |
| Total Dividends/Othr Income | $57,530.00 | $507,224.00 | $4,122.00 | $511,346.00 |
| Net Income/Loss | $21,583.00 | -$325,660.00 | $77,136.00 | -$248,524.00 |
Priority One’s Income Statements for July and August 2010, merely affirm our assertions that neither President Wiggington or COO, Walker, have succeeded in implementing strategies or introduced cut-backs that have served to impact Priority One in either a positive or lucrative manner. Its quite amazing that the expensive efforts enacted by both executive officers have failed to produce the results so often promised.
A STORY OF INCOMPETENCE
The following account was provided by a reader, describing her experience while working at the Van Nuys branch under then Branch Manager, Sylvia Perez. Ms. Perez, despite years of employee complaints filed against Mrs. Perez, on January 1, 2007, she was promoted to the post of AVP by President Wiggington.
"I used to work at the Van Nuys branch. My supervisor was Sylvia Perez. I read the comments about her. When I worked for her, she wasn’t liked because she has this sharp way of talking down to people. She’s pushy and loud and wants people to think like she does. No thank you! [On days] When she left the office to go to Superior Industries or some other SEG or a doctor’s appointment, we would all become happy. It was a big relief for her to be away. We knew our work and didn’t need her standing over us and constantly asking what we’re doing and why we’re doing it that way. She like micromanaging and was so hard and critical.
"I used to work at the Van Nuys branch. My supervisor was Sylvia Perez. I read the comments about her. When I worked for her, she wasn’t liked because she has this sharp way of talking down to people. She’s pushy and loud and wants people to think like she does. No thank you! [On days] When she left the office to go to Superior Industries or some other SEG or a doctor’s appointment, we would all become happy. It was a big relief for her to be away. We knew our work and didn’t need her standing over us and constantly asking what we’re doing and why we’re doing it that way. She like micromanaging and was so hard and critical.
The reason I am writing is because the way she mishandled a robbery that happened at the branch. If you haven’t been to Van Nuys, the branch has two glass doors. Members just can’t walk in, they have to be buzzed in. One day a man walked up to the doors and started walking back and forth. He wore a sweat shirt with a hood and big sunglasses. There were two fsr’s at their desks and Sylvia was in her office. Her office is all glass and you can see every station from her desk. Someone buzzed the door and the man walked in and pulled out a gun. He robbed us and then left. None of us followed and we were all shaken up. The police were called and Sylvia called the South Pasadena office and told them what happened.
When she finished she went around asking if we were okay. I think what really got to me is when she said she saw the man walk up to the doors and she saw him pace around. She said she got suspicious and even said she thought that the guy looked like he might be getting to rob the place. She said she reached under her desk to the alarm button but decided not to push it even after he pulled out the gun. From where he stood, he could not see where her hand was and he never would have known if she pressed the button.
For a know-it-all, she mishandled the whole situation which could gotten one of us hurt or worse. Sylvia likes to tell everyone how they should act and how they should live. She is impatient and I know she used to bad mouth her employees because she thought we were not as smart as her yet on the day we got robbed she suspected the guy with the hood and big sunglasses was going to rob the branch, but she didn’t do anything, not even push the alarm button even after he pulled out a gun. How can she tell anyone how to do things or expect them to be like when she didn’t even know what to do when a guy hiding his identity, walked up to the branch doors? And how come she didn’t push the button even after he pulled out his gun? Sylvia is the worst manager I have ever worked for. I can’t think of one good thing to say about her. From what I read here , she hasn’t changed and she sounds worse.
ANOTHER FARCE
On October 6, 2010, Priority One conducted what they labeled, the "2nd Quarterly Annual Meeting of 2010." Evidently, they have no idea when quarterly meetings are slated to occur. Though the credit union is struggling financially and according to President Wiggington, efforts have been implemented to streamline spending, both the President and COO decided to hold the quarterly meeting at the War Memorial located on Fair Oaks Avenue in South Pasadena, California. We'd like to know how paying to have the meeting off-site is an example of reducing spending?
The meeting was uninspired though it was devoid of all drama which characterized the last two quarterly meetings. Ms. Walker didn't perpetrate one of her usual shams and Training and Education Manager, Robert West, didn't read Biblical scripture is a poorly honed attempt to force employees in a state of guilt. In fact, there were no attacks on this blog. The usual 3 to 4 hour meeting last approximately 50 minutes.
Speakers included President Wiggington, AVP/Senor Vice President/unofficial Human Resources Director, Rodger Smock, and CFO, Saeid Raad. This by the way was the first meeting in a year, President Wiggington was allowed to participate in and unlike April 2010's meeting, he spoke for more than 3-minutes.
However, Beatrice Walker arrived late and did not participate in the proceedings.
The President informed attendees "some employees" may begin working 40-hours per week "sometime next year." He of course, didn't provide anything more specific. He also never mentioned in medical benefits would be restored.
While the President spoke, a scowl swept across the face of CFO, Saeid Raad, suggesting that the President might have failed to confer with Mr. Raad about the restoration of full-time hours to "some" employees. Was the President being sincere or trying to sell another of his bundles of hollow promises?
During the meeting, AVP, Rodger Smock, invited employees express their concerns for the credit union by either calling or sending emails to the President or CFO. In his words, "Feel free to them, to ask them questions, send them emails, these gentleman know what they're talking about." In early 2009, the President implemented a closed-door policy prohibiting all employees from calling, writing, or visiting his office. He also ordered closure of the two doors leading to the wing where his office is located on each door, posted two hand written signs which warned employees they were not allowed access to his wing. We also don't believe the President is qualified to answer questions about the credit union's financial standing nor can he be believed as his proclivity to lie is apparently something he has no control over.
At the conclusion of the meeting, COO, Beatrice Walker, entered the room. The President looked surprised, suggesting she never informed him that she intended to attend the meeting. Later that day, after the meeting concluded, Ms. Walker complained to some employees that Human Resources "clerk", Esmeralda had agreed to pick-up Ms. Walker at her home, but arrived late, causing both to miss most of the meeting. Ms. Walker should have conferred with her chauffeur about the importance of arriving to the meeting on time.
While the President spoke, a scowl swept across the face of CFO, Saeid Raad, suggesting that the President might have failed to confer with Mr. Raad about the restoration of full-time hours to "some" employees. Was the President being sincere or trying to sell another of his bundles of hollow promises?
During the meeting, AVP, Rodger Smock, invited employees express their concerns for the credit union by either calling or sending emails to the President or CFO. In his words, "Feel free to them, to ask them questions, send them emails, these gentleman know what they're talking about." In early 2009, the President implemented a closed-door policy prohibiting all employees from calling, writing, or visiting his office. He also ordered closure of the two doors leading to the wing where his office is located on each door, posted two hand written signs which warned employees they were not allowed access to his wing. We also don't believe the President is qualified to answer questions about the credit union's financial standing nor can he be believed as his proclivity to lie is apparently something he has no control over.
At the conclusion of the meeting, COO, Beatrice Walker, entered the room. The President looked surprised, suggesting she never informed him that she intended to attend the meeting. Later that day, after the meeting concluded, Ms. Walker complained to some employees that Human Resources "clerk", Esmeralda had agreed to pick-up Ms. Walker at her home, but arrived late, causing both to miss most of the meeting. Ms. Walker should have conferred with her chauffeur about the importance of arriving to the meeting on time.
Quarterly meetings were once an important venue though which employees learned about the credit union's performance. Under Charles R. Wiggington, Sr., they've become a setting in which to perpetrate lies which try to convince attendees that things are just great when things are actually miserable on so many levels. The President again contradicted his own lies that he is trying to reduce spending when conducting the meeting at the War Memorial cost the credit union it can't afford. We think he's again trying to create the impression that Priority One is growing when it's own financials reveal it continues to lose money.
Undoubtedly, the President and his staff and probably at the insistence of Board Chair, Diedra Harris-Brooks, is reacting to what we report on this blog.
Undoubtedly, the President and his staff and probably at the insistence of Board Chair, Diedra Harris-Brooks, is reacting to what we report on this blog.
SEX ON THE BRAIN
In 2009, we received the following account from an employee of the credit union, describing an incident involving President Wiggington, that occurred while attending a retirement luncheon. The story is only provided to provide insight into the character of the President.
“In December, I went with Charles [Wiggington] to a postal luncheon. The three of us sat at alone at a table. For an hour and a half I got to listen to the most stupid conversation I have heard since I was in high school. Even though we were guests Mr. Wiggington talked about when he was young (which must have been a long, long time ago) how he and a friend went to a bar and met three girls. They all came back to his apartment where they partied. He said one of the women told him she wanted to go to his room and so his friend and the other women left the apartment.
He said he went in the bedroom and for the next few hours he and “the fat girl” had “wild sex.” He told us about how she did everything he wanted and said, “fat girls are good in bed because they want it more.”
While he was telling his story, I noticed a woman sitting at the table next to hours and listening to everything Mr. Wiggington said. Her eyes were wide open and she never turned away until he finished talking. I can’t believe Charles thought this was a topic to talk about. He never even thought he is the president and maybe should act like one.
She listened to everything Mr. Wiggington said and her mouth was wide open. I couldn’t believe he thought talking about some sex escapade was okay and why he thought we wanted to hear about what he did in bed. No employee should have to go through what we went through even if the one doing the talking is the president. He’s an embarrassment and I am ashamed to say I work for him.”
Anonymous, February 26, 2009
Anonymous, February 26, 2009
CONCLUSION
There has again been another shift in power at Priority One. Disclosures made by the President and Ms. Walker's confidants reveal that the COO's ability to manipulate the ignorant Board of Directors and in particular, its ethically depraved Chair, Diedra Harris-Brooks, has ended. The reason for this has less to do with the failure of her products and services or her abusive treatment of employees but rather, the subject of her alleged sexuality. She is being targeted by a Board made up of amoral hypocrites.
Ms. Walker was hired to serve as the President's own executioner but he never expected her to turn against him and make efforts to displace him. The performance of the products she introduced have fared poorly, at best. Her erratic behaviors have created divisiveness amongst staff members and she has accelerated the cycle of deterioration introduced by Charles R. Wiggington Sr. which has adversely impacted business and employee morale.
Under both the President and COO, Priority One's working environment has been a situation in which business falters but the gossip machine thrives. Security has been displaced by fear and constant campaigns which are designed to slander staff members. And both the President and COO have proven to be the two greatest violators of confidentiality. The blogger obsessed President and COO should take a long look in their emblematic mirrors before pointing crooked fingers at others in an effort to shirk all accountability for their combined failures.
Though the goals of their many campaigns are to pull a fast one, the credit union's Monthly Income Statements and Financial Performance Reports are the true evidence of the credit union's real and unamended financial standing. We invite the President or COO to prove us wrong. Sorry, Diedra Harris-Brooks but our invitation is not extended to your because it's obvious you don't comprehend the credit union's financials.
To be continued......
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