Conference 7.286::dcu

    I hope we're not paying for the phone in the airplane!
    
    isn't the charge offs getting bigger?  they also didn't list the % this
    time. 
    
    where are the minutes of the phone meeting?
    
    btw, can anyone figure out what was *done* at this meeting?
    
    ed
    

>    btw, can anyone figure out what was *done* at this meeting?

Primarily ... The officers of the board were elected ... the rest of
the meeting seemed essentially along the lines of planning ... which is OK.

What I find amazing was the level of co-operation amongst all the board
members ... Clearly there was no evidence of "sides" on issues.  Very 
impressive.

sb

RE: .1

>> where are the minutes of the phone meeting?

Both phone meetings, if published, would have had to be redacted.  Dave Garrod,
the Secretary of the credit union, is working to be sure headers or summaries
are included for all redacted material, in the future.  Please contact him at
DGarrod@aol.com with any ideas you have on the subject.

Elaine

Regarding the  redacted minutes:

I've had an opportunity to review the full un-redacted minutes. In
general, I agree with the decision to redact those sections.

While there may have been a few cases that were judgement calls,
NO sections were redacted where I felt they should have been
made public.

Gim

RE: .1

Since you asked, I looked up the charge-off information missing from the board
minutes.

The charge-off percentage is .19%.  This is "extremely low", or at least pretty
darn low.  It it well below the industry average.  Some at DCU argue that this
is too low.

The delinquency ratio for June was .34%, consistent with May.  Recent press
releases have been saying this is about 1/3 the industry average.

Elaine

> The charge-off percentage is .19%.  This is "extremely low", or at least pretty
> darn low.  It it well below the industry average.  Some at DCU argue that this
> is too low.

What exactly is the charge-off percentage?  How could any amount of charge-off be
too low?  Shouldn't charge-off amounts ideally be 0?

Ray

    I believe the rational of the "charge-off is too low" is that the DCU
    is being "too" conservative in its lending practices.  To make more
    money, they should be "less" conservative.  But, a less conservative 
    lending practice will result in more write-offs..   The equation must
    work out that the increased earnings more than offsets the write-offs
    (minus the tax benefits).
    
    If the numbers support this theory, then more write-offs are good.  
    
    cheers,
    jeff
    

re: .6

The charge-off percentage for a given month is the ratio of charge-offs for that
month to the total average amount of loans, averaged year-to-date.

Jeff, in .7 is right.  Some believe that DCU is being too conservative in its
lending practices, resulting in fewer delinquencies and charge-offs than the
national average.  While this may be true, it is also true that DCU members are
responsible people who take financial matters seriously.  This is evidenced by
the fact that even when Digital (our sponsor) was having massive layoffs, the
loan delinquencies and charge-offs still stayed below the national average.  DCU
also has a high loan approval rate.

Elaine

    Though the amount is written off, collection efforts do continue. Some
    percentage of charge-offs are eventually recovered. 
    
    Gim
    
    

The discussion of charge-off numbers continues in note 973.

Elaine