Overview of Best Reward Credit Union
First chartered in 1949, Best Reward Credit Union is one of 187 credit unions that are based in the state of Ohio. Credit unions operating in Ohio have a total of $38 billion of assets and 2.7 million members. Overall, the state is the 14th most popular state in the country for credit unions. 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 2 branches and employs a total of 22 employees.
Who Can Join?
Membership is available to persons who live, worship, work (or regularly conduct business in), or attend school in, and businesses and other legal entities located in these Ohio counties: Cuyahoga, Geauga, Lake, Medina, Portage and Summit. In addition, membership eligibility is extended to a members immediate family or household as well as spouses of persons who died while within the field of membership of this credit union; employees of this credit union; volunteers in the community; members of their immediate family or household; and organizations of such persons.
Details on the Credit Union’s Balance Sheet
Some of the key components of the credit union’s balance sheet are total assets of $178 million, total loans extended to customers of $126 million and customer deposits of $28 million. In addition, the credit union has a loan to deposit ratio of 22%, which is lower than its peer group average of 63%. 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. Lastly, Best Reward Credit Union’s loan portfolio mainly consists of auto loans and other real estate loans which represent 45% and 27% of its loan book and had outstanding balances of $12 million and $8 million, respectively.
Contact and Other Helpful Information
- Main Office Address: 5681 Smith Rd, Brook Park, OH 44142
- Website: http://www.bestrewardfcu.coop
- Phone: (216) 367-8000
- Charter Number: 24920
- Charter Year: 1949
- Employees: 22
- Routing Number: 241073951
- Membership: Credit unions in the state of Ohio have an average membership base of 14,698 compared with Best Reward Credit Union which has total members of 11,577. Over the past three years, the credit union’s total base of members has declined by 6%.
Best Reward Credit Union: Financial Overview
The above chart summarizes the trends in key balance sheet items for Best Reward 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 expanded by 2.2% while its total loans have decreased by 5.7%. In addition, the company’s auto loans have fallen by 7.4% while its deposits have grown by 6.2%. 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, Best Reward Credit Union’s net worth stands at $21 million. This implies that the credit union has a net worth per member of $1,786 which is greater than the national average of $1,633.
Overview of the Credit Union’s Performance Metrics
The chart above compares Best Reward Credit Union’s performance on three metrics to credit unions in its peer group and also shows the credit union’s performance on each metric in the prior year. These are some of the important measures for a credit union’s performance that we look at. Beginning with Best Reward 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 improved given the 0.03% change. A credit union’s ROA is a good way of assessing how well the entity is using its assets to generate returns. 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. Finally, the net worth ratio for the credit union is 11.6% which is well above its peer group average of 9.8%. This metric has been relatively stable on a year over year basis and stood at 11.8% a year ago. Based on the NCUA guidelines, the credit union is considered to be well capitalized.
After factoring in all the relevant information and data, our final rating for Best Reward Credit Union is 3.0 out of 5.0, which is above average. As a final note, please remember that our rating is the product of a proprietary scoring methodology which uses nationwide data for credit unions and our survey work. Importantly, none of the work presented herein is intended to be investment advice or advice of any sort and is presented purely for informational purposes.