Introduction to Ark Valley Credit Union
First established in 1955, Ark Valley Credit Union is a credit union based in the state of Kansas. It is the 29th largest credit union operating in the state of Kansas as measured by total assets. The credit union falls under the category: state charter. The National Credit Union Administration (NCUA) insures deposits at credit unions in addition to regulating and supervising them. The NCUA was formed by the U.S. Congress in 1970. The company has a total of 2 branches and employs a total of 14 employees.
Details on the Credit Union’s Balance Sheet
The credit union has total assets of $48 million. It has a deposit base of $43 million which works out to $4,969 of deposits per member compared with the state-wide average of $11,150 and national average of $13,594. Ark Valley Credit Union also has net loans outstanding of $27 million. Furthermore, the credit union has a loan to deposit ratio of 62% which is higher than credit unions of comparable size. Ark Valley Credit Union’s peer set of credit unions have a loan to deposit ratio of approximately 49%. A lower ratio is better since it means that a credit union’s lending activities are more comfortably covered by its deposit base. Moving on to the credit union’s loan portfolio, it mainly consists of the following: auto loans make up 61% of the portfolio and there is a total of $16 million outstanding and other real estate loans comprises 16% of the loan book and there is a total of $4 million outstanding.
Contact and Other Helpful Information
- Main Office Address: 1515 N Summit St, Arkansas City, KS 67005
- Website: http://arkvalleycu.org
- Phone: (620) 442-8210
- Charter Number: 62894
- Charter Year: 1955
- Employees: 14
- Routing Number: 301177713
- Membership: Credit unions in the state of Kansas have an average membership base of 14,535 compared with Ark Valley Credit Union which has total members of 8,636. Over the past three years, the credit union’s total base of members has declined by 4%.
Ark Valley Credit Union: Financial Overview
The above chart summarizes the trends in key balance sheet items for Ark Valley Credit Union. First off, it is noteworthy that across the board, all four items have increased over the past year. The credit union’s assets have increased by 13.0% while its total loans have grown by 1.9%. In addition, the company’s auto loans have expanded by 1.7% while its deposits have grown by 16.7%. 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. Ark Valley Credit Union has a total net worth of $5 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 $572 which is below the national average of $1,606.
Overview of the Credit Union’s Performance Metrics
In the above chart we have displayed three statistics that are important in evaluating a credit union’s performance and shown how Ark Valley Credit Union compares on these metrics, in addition to detailing how the credit union performed on each metric in the prior year. If we take a look at Ark Valley Credit Union’s return on assets – which is usually a good measure of how efficiently a company is using its assets to produce profits – we see that the credit union is above the average comparable credit union and also that over the past year ROA has declined given the year over year change of 0.49%. The delinquency rate is a measure of what percentage of an entity’s loan book has fallen past due i.e. is delinquent. All else equal, a higher rate implies a worse performing loan portfolio. In the case of Ark Valley Credit Union its delinquency rate is below its peers and over the past 12 months the credit union’s delinquency rate has improved substantially. The net worth ratio for the credit union is 10.3% and has declined compared with the prior year figure of 10.9%. The credit union is also below its peer group average of 10.6% on this metric. Finally, based on the NCUA guidelines, the company’s net worth ratio would classify it as well capitalized.
Conclusion
In conclusion, when we look at all the various factors and data we give Ark Valley Credit Union a 2.7 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.