Conference 7.286::dcu

812.0. "DCU operating expenses are out of control" by SMAUG::GARROD (DCU Board of Directors Candidate) Sat Apr 09 1994 01:18

    Let's look at how efficiently the credit union has been run over the
    last years and what the trends look like:
    
    
	              1990	    1991	  1992	        1993
    
    Assets	      $366,405,274  $359,216,121  $359,810,242  $345,815,581	
    Salary Expense      $6,780,151    $6,577,412    $7,157,213    $6,939,619
    Operating Expense   ?             $3,539,186    $4,081,316    $4,429,215	
    
    
    Expenses as a percentage of assets:
    
	                1990	     1991	   1992	        1993
    
    Salary Expense      1.85%	     1.83%	   1.99%	2.01%
    Operating Expense   ?            0.98%	   1.13%	1.28%
    
    
    Percentage expense growth over prior year adjusted for asset size:
    
	                1990	     1991	   1992	        1993
    
    Salary Expense      ?	     (1.08%)	    8.74%	 1.00%
    Operating Expense   ?            ?		   15.31%	13.27%
    
    To me this shows a credit union with operating expenses out of control.
    Over the last two years operating expenses have grown at a rate of
    about 15% per year. Pity all those additional expenses ended up:
    
    	- Cutting the number of members
    	- Decreasing the amount of loans outstanding
    	- Decreasing the amount of deposits
    
    But let's all remember we DID grow the capital ratio. Pity this doesn't
    benefit the membership in a meaningful way.
    
    We don't need fees we need a credit union that is run more efficiently.
    
    Dave