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| 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 |
277.0. "DCU facts, figures & quotes" by GUFFAW::GRANSEWICZ (I'M DCU and you're not.) Thu Sep 05 1991 19:37
[Permission to forward or re-post this note is granted.]
The following is a summary of facts, figures and quotes concerning
DCU's participation loans and "investments". Most of it has been
posted in various topics throughout this conference and I thought
it would be helpful to put it all together for people to read.
It will also serve as a good source of real information for those who
will be attending next weeks informal meeting with the Board of
Directors.
If you have any questions concerning this information, please post a
reply to this topic.
Phil
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Source: Copied from DCU Annual Reports 1985-1990. This information was
contained in the auditors notes. The auditors notes were not
published with the DCU Annual Reports.
Loans Outstanding: (in thousands)
1985 1986 1987 1988 1989 1990
------ ------ ------ ------ ------ ------
Automobile 32,962 51,452 44,384 39,803 34,955 33,510
Mortgage 25,845 74,557 70,691 72,822 69,723 71,553
Home Equity -- -- 43,338 63,441 81,203 89,457
Other Secured 3,463 6,082 6,459 7,212 6,411 5,096
Unsecured 15,124 9,820 15,073 21,153 35,706 39,721
Participation loans 2,520 8,010 9,886 -- -- --
with other CU *
Commercial RE loans * -- -- -- 12,766 15,332 8,727
* = Description of participation loans changed to Commercial RE loans.
(Note: Participation loans reached a high of $18 million in 1990.
The first loan default was in the fall of 1990.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Source: Copied from DCU Annual Reports 1985-1990. This information was
contained in the auditors notes. The auditors notes were not
published with the DCU Annual Reports.
Allowance for Loan Losses: (in thousands)
1985 1986 1987 1988 1989 1990
----- ----- ----- ----- ----- -----
Balance, Beg. Year 540 1161 1159 1272 1429 1533
Provision Charged to 747 243 240 240 240 4406
Operations
Loans charged off (members) (130) (284) (187) (140) (173) (283)
Paricipation loans (2696)
Charged Off
Recoveries 4 39 60 57 37 21
Balance, End Year 1161 1159 1272 1429 1533 2981
(Note: $2,696,000 loss on participation loans in 1990.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Source: DCU communication from Chairman of the Board, Mark Steinkrauss,
sent in the monthly statement. The exact date is unknown. One
paragraph reads "In 7 1/2 years we've grown from". Since formed
in 1980, this would date the letter to the mid-1987 time frame.
'Q. How does DCU invest its money?'
'A. Because we view DCU as the guardian of members' savings we are
very conservative in our investment policies. We reinvest savings in
member loans. Additional investments are in government securities and
federally insured banks. We deal with the highest quality financial
institutions and don't invest in any sort of "speculative" instruments.'
(Note: Quotes around the word speculative are in the original letter.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Source: 1990 DCU Annual Report brochure. Auditors notes not included.
Statements of Income
(in thousands)
Years ended
December 31,
1990 1989
----------------------------------------------------------------
Interest income:
Loans $29,059 26,567
Federal funds sold 5,791 2,873
U.S. Government obligation 373 1,491
------- ------
Total interest income 35,223 30,931
Interest expense on savings accounts 20,719 18,894
------- ------
Net Interest Income 14,504 12,037
Provision for possible loan losses 4,406 240
------- ------
Net interest income after provision
for possible loan losses 10,098 11,797
------- ------
Other income:
Service fee income 961 894
Expense reimbursement 158 218
------- ------
Total other income 1,119 1,112
------- ------
Operating expenses:
Compensation and employee benefits 6,780 5,797
Office operations expense 2,582 2,325
Depreciation 683 656
Other operating expenses 882 800
------- ------
Total operating expenses 10,927 9,578
------- ------
Net income $ 290 3,331
======= ======
(Note: 1990 Net income down 87%. $4,406,000 allocated to cover loan
losses.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Source: 1990 DCU Annual Report.
"We will continue our prudent lending and investment practices so that
our members' investments remain safe and sound." (M. Steinkrauss, Chairman)
"Finally, as we progress through 1991, we will continue to focus on the
security of funds while providing our members with the best possible
service." (M. Steinkrauss, Chairman)
"As the industry reported unprecedented losses, DCU's financial
performance improved with Net Income for 1990, on target at .8% or $.3
million. We maintain a conservation cash position and invest in only
the highest quality money-market investments." (S. Shapiro, Treasurer)
"Most of our earnings were placed in reserves as we anticipate
continued pressure on the real estate market, especially in New
England." (S. Shapiro, Treasurer)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Source: Copied from 1990 DCU Annual Report obtained at DCU headquarters.
This information was contained in the auditors notes. The
auditors notes were not published with the 1985-1990 DCU Annual
Reports.
" (3) Loans
The credit union grants home equity loans, residential loans and
consumer loans to members. The credit union also participates in
commercial real estate loans primarily in the Cape Cod region.
Approximately 67% of the loans granted by the credit union are
secured by real estate. The ability and willingness of the home
equity, single family residential and consumer borrowers to honor their
repayment commitments is generally dependent on the level of overall
economic activity within the borrowers geographic areas and real estate
values. The ability and willingness of commercial real estate borrowers
to honor their repayment commitments is generally dependent on the
health of the real estate economic environment in the borrowers
geographic areas and the general economy."
"Real Estate Acquired by Foreclosure or Substantively Repossessed
----------------------------------------------------------------
Real estate acquired by foreclosure or substantively repossessed is as
follows:
Dec. 31 1990
------------
Land $4,131,000
Commercial Real Estate 2,562,000
----------
$6,693,000
At December 31, 1990, real estate acquired by foreclosure or
substantively repossessed included approximately $5,668,000 of
properties that were substantively repossessed."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Source: Copied from DCU Statements of Condition, January, 1991 thru
July 1991.
Loan Delinqt Loans 1991 1990 % chg
Losses (2-6 months) Total Equity Total Equity from '90
-------- ------------- ------------- ------------ --------
January $ 30,005 $ 885,339 $16,038,251 $15,888,210 (+0.9%)
February 201,248 7,961,018 16,204,064 16,188,225 (+0.1%)
March 33,900 8,801,520 16,325,436 16,437,769 (-0.7%)
April 7,998 9,760,978 15,508,297 16,792,624 (-7.6%)
May 4,380 11,533,859 15,627,272 17,095,715 (-8.6%)
June 99,069 10,683,797 15,817,325 17,488,566 (-9.6%)
July 328,842 8,603,486 14,219,207 17,767,722 (-20.0%)
--------
$705,442
(Note: $8,603,486 in 2-6 month delinquent loans. Most of this is the
participation loans. Total Equity has dropped 20.0% over the
last year.)
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