Introduction to BCEFCU
BCEFCU was first established in the year 1963 and is the 16th largest credit union operating in the state of Maryland as measured by total assets. It is also larger than 86% of all credit unions in the country. In terms of its lending activities, the credit union primarily focuses on providing auto loans and these loans represent 43% of its outstanding lending. 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 3 branches and employs a total of 59 employees.
Overview of the Credit Union’s Assets and Liabilities
The credit union has total assets of $506 million. It has a deposit base of $463 million which works out to $15,797 of deposits per member compared with the state-wide average of $14,003 and national average of $13,594. BCEFCU also has net loans outstanding of $224 million. In addition, the credit union has a loan to deposit ratio of 48%, which is lower than its peer group average of 74%. Generally speaking, a lower loan to deposit ratio is better as it implies that the credit union is funding more of its lending activities with deposits. Moving on to the credit union’s loan portfolio, it mainly consists of the following: auto loans make up 43% of the portfolio and there is a total of $96 million outstanding and mortgages and lines of credit comprises 38% of the loan book and there is a total of $85 million outstanding.
Contact and Other Helpful Information
- Main Office Address: 23 W Susquehanna Ave, Towson, MD 21204
- Website: http://www.bcefcu.com
- Phone: (410) 828-4730
- Charter Number: 15394
- Charter Year: 1963
- Employees: 59
- Routing Number: 252075757
- Membership: The credit union has a membership base of 29,312 which is greater than the average credit union operating within the state. Credit unions in Maryland each have on average 27,467 members. Over the past three years, the credit union’s total base of members has increased by 0%.
BCEFCU: Financial Overview
Detailed above is a chart showing the progression of four important balance sheet items over the past year for BCEFCU. Assets and total loans for the credit union have increased by 12.2% and grown by 7.5%, respectively. In addition, the company’s auto loans, which as noted earlier is the largest portion of the loan book, has increased by 4.9%. Lastly, the credit union’s deposits have increased by 16.3%. A credit union’s net worth is a good proxy for the value that a credit union has accrued over time. Based on the latest available information, BCEFCU’s net worth stands at $39 million. This implies that the credit union has a net worth per member of $1,327 which is below the national average of $1,606.
Overview of the Credit Union’s Performance Metrics
The above chart shows some of the important metrics we look at when assessing a credit union, and compares these to the average credit union of comparable size. It also shows how these metrics have fared over the past year. If we take a look at BCEFCU’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 below the average comparable credit union and also that over the past year ROA has improved given the year over year change of 0.14%. Moving on to the credit union’s delinquency rate, which tells us how much of a credit union’s loan book is delinquent, the credit union is below its peer group on this metric and compared with the prior year it has improved substantially. Keep in mind that a higher delinquency rate indicates a lower performing loan book so a declining rate is a favorable trend. The net worth ratio for the credit union is 7.7% and has declined compared with the prior year figure of 8.3%. The credit union is also below its peer group average of 9.8% on this metric. Finally, based on the NCUA guidelines, the company’s net worth ratio would classify it as well capitalized.
Overall, we believe BCEFCU deserves a rating of 2.6 out of 5.0, which is 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.