Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Kern Schools FCU passes 6 capital ratio goal
BAKERSFIELD, Calif. (8/10/11)--Kerns Schools FCU (KSFCU) in Bakersfield, Calif., reached a 6.53% capital ratio as of June 30, passing the 6% goal set by federal regulators in the summer of 2009. The credit union’s improved financial health is mainly due to reducing costs. The goal was attained at the $1.38 billion asset credit union after two years of layoffs (more than 40 employees) and branch closures (six) caused by the recession-led market turmoil (The Bakersfield Californian Aug. 9). A credit union’s capital ratio is a bottom-line measure of financial stability determined by dividing its net worth by it total assets. Regulators use the gauge to judge whether a financial institution is strong enough to absorb financial losses. At the end of second quarter 2010, KSFCU’s capital ratio was 4.31%. Credit union officials said they are on the way to achieving the 7% capitalization level regulators require to be well-capitalized, the newspaper said. The credit union also charged off tens of millions of dollars of bad debt since 2009, and maintained a fairly healthy loan loss reserve to cover bad debt, the paper said.


RSS





print
News Now LiveWire
Maine credit unions put Food Mobile on the road to relieving hunger in rural areas http://t.co/R0xpt6BAZE
14 hours ago
.@TheNCUA's Matz: PALS should be exempt from Military Lending Act proposal #NewsNow http://t.co/Vy9uNhOIEr
15 hours ago
#NewsNow Iowa loan growth 3 times national bank rate http://t.co/fUvudPLg5d
17 hours ago
.@ICBA tallies its Home Depot data breach costs: $90M, 7.5M cards http://t.co/iJgRDC2AKZ
19 hours ago
.@icul's Jury elected treasurer of @WOCCU exec committee http://t.co/HEF1UChN8f
19 hours ago