Aeroquip Credit Union: Overview of the Credit UnionAeroquip Credit Union officially got its credit union charter in the year 1949. The credit union falls under the category: state charter. In terms of its lending activity, the credit union is mainly engaged in providing mortgages and lines of credit. These loans represent 56% of its total lending. Aeroquip Credit Union’s total assets are larger than 52% of credit unions in the United States. Credit unions are regulated by the National Credit Union Administration (NCUA), which is an independent agency that was created by the U.S. government in 1970. The NCUA also insures customer deposits at credit unions in the country. The company has a total of 3 branches and employs a total of 12 employees.
Overview of the Credit Union’s Assets and LiabilitiesThe credit union has total assets of $55 million. It has a deposit base of $47 million which works out to $11,771 of deposits per member compared with the state-wide average of $13,823 and national average of $13,594. Aeroquip Credit Union also has net loans outstanding of $24 million. The average credit union in Aeroquip Credit Union’s peer set has a loan to deposit ratio of approximately 55%. In comparison, Aeroquip Credit Union has a loan to deposit ratio of 52% which is clearly lower than the peer set. A lower ratio is generally better as it indicates that the lending activities of a credit union are more comfortably covered by its deposit base. Deposits are often the most cost effective source of funding for banks and credit unions. Lastly, Aeroquip Credit Union’s loan portfolio mainly consists of mortgages and lines of credit and auto loans which represent 56% and 26% of its loan book and had outstanding balances of $14 million and $6 million, respectively.
Contact and Other Helpful Information
- Main Office Address: 901 Plymouth St, Jackson, MI 49201
- Website: http://www.aeroquipcu.com
- Phone: (517) 789-2890
- Charter Number: 61405
- Charter Year: 1949
- Employees: 12
- Routing Number: 272481512
- Membership: On average, credit unions in Michigan each have 27,640 members while across the United States the equivalent figure is 25,779. By comparison, Aeroquip Credit Union has total members of 3,988 which is significantly smaller than the average credit union in the state. Over the past three years, the credit union’s total base of members has declined by 4%.
Aeroquip Credit Union: Financial OverviewDetailed above is a chart showing the progression of four important balance sheet items over the past year for Aeroquip Credit Union. Assets and total loans for the credit union have grown by 12.0% and decreased by 3.3%, respectively. In addition, the company’s mortgages and lines of credit, which as noted earlier is the largest portion of the loan book, has expanded by 6.8%. Lastly, the credit union’s deposits have increased by 16.0%. We like to look at a credit union’s net worth to get a sense of the performance of the entity over the years for its members. Aeroquip Credit Union has a total net worth of $7 million while the average credit union in the United States has a net worth of $41 million. This implies that the credit union has a net worth per member of $1,877 which is greater than the national average of $1,606.
Overview of the Credit Union’s Performance MetricsIn the above chart we have displayed three statistics that are important in evaluating a credit union’s performance and shown how Aeroquip Credit Union compares on these metrics, in addition to detailing how the credit union performed on each metric in the prior year. Beginning with Aeroquip Credit Union’s return on assets (aka ROA), on this statistic the credit union performs below the average comparable credit union. When we look at the year over year trends, we can see that ROA has declined given the 0.43% change. A credit union’s ROA is a good way of assessing how well the entity is using its assets to generate returns. We look at the delinquency rate within a loan portfolio as a way to assess the performance and quality of a credit union’s loan book. A lower delinquency rate indicates a better performing portfolio. Aeroquip Credit Union has a delinquency rate that is below its peer group average and when compared with the prior year, we can see that it has improved substantially. The net worth ratio for the credit union is 13.7% and has declined compared with the prior year figure of 15.3%. The credit union is also well above its peer group average of 10.2% on this metric. Finally, based on the NCUA guidelines, the company’s net worth ratio would classify it as well capitalized.
ConclusionIn conclusion, when we look at all the various factors and data we give Aeroquip Credit Union a 3.3 out of 5.0 rating, which we consider to be above average. Finally, please note that the rating information presented is based on our proprietary scoring system. None of the work presented is intended to be investment advice or advice of any sort and is presented purely for informational purposes.
Other Credit Unions in Michigan
|Credit Union Name||Website||Total Members|
|Frankenmuth Credit Union||http://www.frankenmuthcu.org||61,250|
|Wildfire Credit Union||http://www.wildfirecu.org||49,780|
|Embers Credit Union||https://www.embers.org||29,923|
|Our Credit Union||http://www.ourcuonline.org||22,794|
|Gerber Federal Credit Union||http://gerberfcu.com||16,332|
|Parda Federal Credit Union||http://www.parda.com||15,305|
|Peninsula Federal Credit Union||http://peninsulafcu.com||13,832|
|Filer Credit Union||http://www.filercu.com||10,713|
|Michigan Coastal Credit Union||http://www.michigancoastal.com||2,944|
|Grand Trunk Credit Union||http://www.grandtrunkcu.com||2,730|