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Nov. 17, 2003
Cascade Federal Credit Union
Commenter #3, CFCU’s loan to deposit ratio is explained by our deposits per member ratio being more than double the industry average. Our loan ratio would be above peer group if our deposits where only average for the industry. CFCU would not consistently be recognized for its financial performance by Callahan’s if it were mismanaged. Commenter#4 and #5. You are being way too cynical. The idea of a no-merger guarantee originated from frustrated members commenting about the hassles they went through when their bank merged. We simply wanted a way to offer assurance they would not be put through the hassle at CFCU. Or, if we did merge, the guarantee is a way of compensating for the inconvenience a merger imposes on its members. CFCU is open to any merger offer that will provide better long term benefit to CFCU members. Unfortunately, an increasing number of credit unions abandon their not-for-profit heritage in favor of the for-profit bank model. Charging $25 for an NSF is a typical for-profit tactic credit unions now use.
Commenter #3, the loan to deposit ratio is explained by a dollars per member deposit ratio double the industry average, and a reluctance to make 30-year fixed mortgages when rates at record lows. Our loan ratio would be above peer group if our deposits where only average for the industry. Commenter#4 and #5. I did not say CFCU would not merge. The no-merger guarantee stemmed from frustrated members commenting about the hassles they went through when their banks merged. The guarantee is a way of recognizing the inconvenience a merger puts its members through. Any merger offer that will provide better longterm benefit to CFCU members will be considered. Credit unions are co-ops that are suppose to return money to the members. Cascade does that better than most, and does not gouge its members with $25 nsf fees, which is now the norm for the industry.
Dale Kerslake, Cascade FCU
Great information and story.
Kerslake's credit union has a 30% loan to deposit ratio; not a business model most would equate with a well run credit union. Is he qualified to critique other business models?
I'd love to see more stories on mutual thrift charter conversions...both pro and con.
I'd like to see a list of CUs converting; would help to research publications re: reasons for conversion; pros & cons; etc.
This anti-merger tactic appears more designed to protect the Manager's future and that of the insiders. A merger may be the best thing for his members. Buying them off with a $100 bribe is the wrong approach. Henry Wirz, President, SAFE Credit Union
Dale Kerslake doesn't care about his members welfare. His anti-merger tactic appears more designed to protect his future and that of the insiders. A merger may be the best thing for his members. Buying them off with a $100 bribe is the wrong approach.
Which CU have started to switch? Do they have a common strength and/or weakness to take the step to change charters?
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