LAS VEGAS — With capital on the meeting's agenda here during the recent Directors' Convention, Credit Union Journal asked attendees how their own CU's capital is surviving the current economy?
Ken Andreason, director, Town Mill CU, Everett, Wash.
Actually, we are above the 18% level that is our usual target — we are at about 25%. We only have one branch and we are really conservative.
John McDonald, director, Fed One FCU, Laguna Niguel, Calif.
We are doing rather well, though I can't give our exact capital level. We don't have any real estate loans, which is a key. Our field of membership is a pretty stable pool, being federal employees. The vast majority of them have permanent status, so we haven't dealt with job losses, as many credit unions have. Federal contractors are eligible to join, also, and some of them have had their contracts not picked up, but that hasn't affected us.
Zinna Davis, Raymond Covington and Stephone Allen, directors, Patent and Trademark Office FCU, Alexandria, Va.
Surprisingly, we are still well capitalized. There has been a massive inflow of funds in recent months as some of our older members are saving and paying down their loans, and the younger ones are saving. No one is borrowing! At the last board meeting our capital was about 18%.
Debbie Conder, director, JSC FCU, Houston
Our capital is doing very well, and we consider ourselves very fortunate that it is. We have a great member base and we have not experienced a lot of layoffs. The Space Program is holding up well, and we are doing the right things strategically. We have an excellent management team. We offer the right products and services to our members. We have 15 branches, so we are convenient to our members.
Jerry Eichholz, chairman, Vantage CU, Bridgeton, Mo.
Our capital is holding up well. We have a policy that says our capital is not going to go below 8%. As long as it stays above that number, management is free to do what they need to do. If it gets below 8%, the board asks for more information and what the plan is.
Given everything that has happened since January, we as a board just reaffirmed that position [treating 8% as a floor].
Rita Ornellas, EVP, Aloha Pacific FCU, Honolulu
Our capital is holding up very well. It declined a little bit but that was planned. We acquired another credit union and we are expanding our branches. We bring in a lot of deposits, which has a negative reflection on our capital. We were at 12%; now we are at 10%.
We are expanding our loan portfolio. We have had several large commercial loans, plus indirect loans. Our board maintains an eagle eye on our net income-the minimum standard is $1 million each year.
