Search
 

No Substitute for Retained Earnings

Having just read Suncoast Schools FCU CEO Tom Dorety's letter to the editor in the Feb. 3 issue, it makes one wonder how did the likes of Navy FCU and Pentagon FCU manage to grow capital?

Having just read Suncoast Schools FCU CEO Tom Dorety’s letter to the editor in the Feb. 3 issue, it makes one wonder how did the likes of Navy FCU and Pentagon FCU manage to grow capital? It seems both did it the old-fashioned way, through retained earnings. Now, one would think with assets north of $5 billion Suncoast Schools has reached an economy of scale. You would be wrong.

As CEO of Suncoast, Dorety has not shown a profit since 2007. During 2009 SunCoast has lost over $483 Million in assets. In 2009, SunCoast lost over $77 million in income, and it has lost over $84 million in capital. With a net worth ratio of a mere 6.04%, it is in a hard way. Dorety’s answer to his plight is to beg permission from the NCUA to raise alternative capital. The real answer is to adjust the Suncoast business model and reduce operating expenses.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Peter Westerman

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.