Introduction to Centricity Credit Union
First chartered in 1943, Centricity Credit Union is one of 94 credit unions that are based in the state of Minnesota and also one of the largest credit unions in the country. Credit unions operating in Minnesota have a total of $35 billion of assets and 2.0 million members. Overall, the state is the 22nd most popular state in the country for credit unions. Centricity Credit Union’s deposits are insured by the National Credit Union Administration (NCUA), which operates very similarly to the Federal Deposit Insurance Corporation, except with a focus on credit unions. The NCUA also regulates and supervises Centricity Credit Union’s operations. The company has a total of 3 branches and employs a total of 65 employees.
Details on the Credit Union’s Balance Sheet
Some of the key components of the credit union’s balance sheet are total assets of $220 million, total loans extended to customers of $193 million and customer deposits of $157 million. The credit union also has a loan to deposit ratio of 82% which is higher than the average credit union of similar size. The loan to deposit ratio is a good way to assess how liquid a bank or credit union’s balance sheet is. Moving on to the credit union’s loan portfolio, it mainly consists of the following: auto loans make up 36% of the portfolio and there is a total of $57 million outstanding and mortgages and lines of credit comprises 22% of the loan book and there is a total of $34 million outstanding.
Contact and Other Helpful Information
- Main Office Address: 4477 Lavaque Rd, Hermantown, MN 55811
- Website: http://www.centricity.org
- Phone: (218) 729-7733
- Charter Number: 68685
- Charter Year: 1943
- Employees: 65
- Routing Number: 291973739
- Membership: The credit union has a membership base of 17,624 which is smaller than the average credit union operating within the state. Credit unions in Minnesota each have on average 21,297 members. Over the past two years, the credit union’s total membership has increased by 6%.
Centricity Credit Union: Financial Overview
The above chart summarizes the trends in key balance sheet items for Centricity 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 18.4% while its total loans have grown by 16.1%. In addition, the company’s auto loans have expanded by 18.1% while its deposits have expanded by 23.0%. ‘Net worth’ is a good way to assess the long-term performance of a credit union as it represents the accumulated value of the entity over time. Importantly this is value that accrues to the credit union’s owners: its members. Centricity Credit Union has a total net worth of $23 million. This implies that the credit union has a net worth per member of $1,282 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 Centricity Credit Union compares on these metrics, in addition to detailing how the credit union performed on each metric in the prior year. Beginning with Centricity Credit Union’s return on assets (aka ROA), on this statistic the credit union performs well above the average comparable credit union. When we look at the year over year trends, we can see that ROA has improved substantially given the 0.28% 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. Centricity Credit Union has a delinquency rate that is well above its peer group average and when compared with the prior year, we can see that it has been relatively stable. Finally, the net worth ratio for the credit union is 10.3% which is well above its peer group average of 9.7%. This metric has declined on a year over year basis and stood at 10.7% a year ago. Based on the NCUA guidelines, the credit union is considered to be well capitalized.
Conclusion
After factoring in all the relevant information and data, our final rating for Centricity Credit Union is 2.9 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.