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Conference 7.286::dcu

Title:	DCU
Notice:	1996 BoD Election results in 1004
Moderator:	CPEEDY::BRADLEY

Created:	Sat Feb 07 1987
Last Modified:	Fri Jun 06 1997
Last Successful Update:	Fri Jun 06 1997
Number of topics:	1041
Total number of notes:	18759

741.0. "DCU Capital Ratio" by SPECXN::WITHERS (Bob Withers) Fri Jan 21 1994 16:27

This is the latest discussion I could find on the DCU capital ratio, so I
thought I'd start a discussion of this aspect of the Credit Union's financial
status.  For reference, the status and goals are:

>================================================================================
>Note 2.23                      BoD meeting minutes                      23 of 23
>ASE003::GRANSEWICZ                                  451 lines   6-JAN-1994 21:55
>--------------------------------------------------------------------------------
>              -< BoD meeting, November 30, 1993, Discussion->734 >-
>
>
>                     DIGITAL EMPLOYEES' FEDERAL CREDIT UNION
>                           Board of Directors Meeting
>                                November 30, 1993
>                                                    
>  Capital Ratio
>
>   DCU's capital ratio grew to 6.39% in October, up from 4.82% in December,
>   1992.  While the growth in capital continues to be strong, we are still
>   below our peers' average of 8.5%.
>
>================================================================================
>Note 734.7         Discussion of November 30, 1993 BoD Minutes            7 of 9
>ASE003::GRANSEWICZ                                   59 lines   9-JAN-1994 13:05
>--------------------------------------------------------------------------------
>                              -< Capital Ratios >-
>
>       Our current Five Year Goals call for:
>
>        9.0% gross capital ratio or better by yearend 1998
>        8.5% net   capital ratio or better by yearend 1998

T.R	Title	User	Personal Name	Date	Lines
741.1	SSFCU = 6.95	SPECXN::WITHERS	Bob Withers	`Fri Jan 21 1994 16:30`	3
	As a basis for comparison, the Capital Ratio at Security Service FCU, a Credit Union about 50% larger than the DCU (if memory serves me correctly), is 6.95 "and PROUD of it!"
741.2		SPECXN::WITHERS	Bob Withers	`Fri Jan 21 1994 16:32`	4
	I find it interesting that I keep wanting to type "Cap Ration" rather than "Cap Ratio". There's a subconscious message in there, I think 8-) BobW
741.3	Progress	CADSYS::RITCHIE	Gotta love log homes	`Thu Nov 03 1994 19:08`	13
	Well, as of the end of August, the capital ratio is up to 7.76%. This is a leap from the near 7% numbers for the previous four months. It looks to me as if it is due mostly to getting money from lawsuits. That's fair, since the suits are trying to recover money we lost due to the fraud. At 7.76, we are well on our way to the goal of 9% by 1998. I will continue to track this ratio to be sure we at least hold our ground. From the sounds of it, though, this is a good place to be. If anyone is interested, I have 132 column ascii chart tracking these numbers since about 1991. It's in CADSYS::MAESTRO$:[RITCHIE.PUBLIC]DCU_CAP_RATIO.TXT. Elaine
741.4		RLTIME::COOK		`Thu Nov 03 1994 19:20`	8
	Can the capital ratio for a credit union be too high? What would be the consequences for a capitol ration of 10% or 15%? Al
741.5	What is the right number	STAR::BUDA	I am the NRA	`Thu Nov 03 1994 21:34`	17
	RE: Note 741.3 by CADSYS::RITCHIE >At 7.76, we are well on our way to the goal of 9% by 1998. I will continue to >track this ratio to be sure we at least hold our ground. From the sounds of >it, though, this is a good place to be. I think we are going too fast, IMHO. I am still wondering if 9% if a 'Chuck' number or should we be at a lessor number. According to previous administrations, the larger the number, the better. I think we all agree that 15% would be overkill and a waste. Is 8% good enough? I have never felt comfortable that enough information was available for someone to feel comfortable with how the 9% number was created. - mark
741.6		CADSYS::RITCHIE	Elaine Kokernak Ritchie, 225-4199	`Thu Aug 31 1995 19:21`	4
	Well, we hit 9%. The gross capital ratio at the end of July was 9.05% Joe Melchione made reference to it in the press release. Elaine