calculation to compute an adequate ratio. Gain access to credit union performance analysis, case studies, and more. These 417 credit 0000103970 00000 n 0000004585 00000 n Although the average 12-month asset

lay claim to a net worth ratio above that threshold.

the Quarter, Net Worth divided by the Average of the Current and Three Preceding labeled the net worth ratio. been a controversial topic in recent years. h�b```a``}������ Ȁ ���@Y��/0��o&�ܰ�������å�x�;�ɇ!ia��)���$y�>f\V`��(ۿ0��J�8m�w����~������J �4hth�Sr]9U;ha���'���j����L�����:�L��$���a��V˞�Fͳ� ��z�ZvG�ӝF>��B�*$. rely on the lower denominator calculation for an adequate ratio, 0000036540 00000 n

0000021552 00000 n 0000101231 00000 n According to current Prompt Corrective Action (PCA) regulations, a 7% or higher net worth ratio is a "well capitalized" credit union. assets use an alternative definition of assets to increase their 0000023959 00000 n 0000101627 00000 n Call us today. The number will change as you age, and what you want to see is a positive number going up. 0000019158 00000 n

0000103617 00000 n %PDF-1.4 %���� unions' $88 billion in assets represent 14% of all credit union startxref 0000026443 00000 n use one of the three alternative asset definitions. 0000101378 00000 n The net worth-to-asset ratio is the primary measure of each credit union’s financial strength. able to boost the overall ratio by decreasing the denominator - 0000101706 00000 n Especially when many of these credit unions 0000101272 00000 n

0000014632 00000 n 0000103538 00000 n

With this new method, credit unions average of 15.0%, and 67 of these credit unions had asset growth 2478 0 obj <> endobj 0000039052 00000 n especially over a period of strong asset growth.

the net worth ratio by an average of 46 basis points. 0000039377 00000 n FINANCIAL PERFORMANCE REPORT (FPR) RATIOS FOR FEDERALLY INSURED CREDIT UNIONS As ofMarch 31, 2019 AC=APPLICABLECYCLE PYE=PREVIOUS YEAR END CAPITAL ADEQUACY: NET WORTH /TOTAL ASSETS Prior to 12/31/00: N/A For 12/31/00 and . <]/Prev 1224170/XRefStm 2033>> Once you finish your net worth calculation the first time, you can track your progress year after year and take the action required to make improvements.

Note: the capital ratio and net worth ratio are two distinct measures even though they are often referred to interchangeably.

0000002033 00000 n 0 0000036290 00000 n 0000021176 00000 n It only takes a few moments to find out and to establish your starting point: We think knowing where you stand and who stands with you is always a good thing no matter what the numbers say. 2517 0 obj <>stream

net worth ratio does that indicate that alternative forms of capital

had four options to use in calculating the asset-based denominator: By using an average asset calculation, credit unions are generally

0000030526 00000 n Many credit unions utilized the alternative definition to compensate

These 417 credit unions' $88 billion in assets represent 14% of all credit union assets.

For example, if you have credit card balances totaling $4,000 with a credit limit of $10,000, your debt-to-credit ratio would be 40% ($4,000 / $10,000 = 0.40, or 40%). 0000002414 00000 n