Overview of Four Corners Federal Credit Union
The credit union first came into existence in 1965 and has been operating for the last 57 years. Four Corners Federal Credit Union is based in the state of New Mexico and is also the 30th largest credit union operating in the state; this is calculated based on its total assets. 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 1 branch and employs a total of 12 employees.
Details on the Credit Union’s Balance Sheet
As previously indicated, the credit union currently has total assets of $20 million, which makes it larger than 32% of credit unions in the United States. Four Corners Federal Credit Union also has net loans outstanding to customers of $6 million and a deposit base of $17 million. Furthermore, the credit union has a loan to deposit ratio of 34% which is lower than credit unions of comparable size. Four Corners Federal Credit Union’s peer set of credit unions have a loan to deposit ratio of approximately 48%. A lower ratio is better since it means that a credit union’s lending activities are more comfortably covered by its deposit base. Taking a closer look at the credit union’s loan portfolio, we see that auto loans represent 62% of the total and currently stands at $4 million, while there is $1 million of loans outstanding from other real estate loans which represents 15% of the credit union’s loan portfolio.
Contact and Other Helpful Information
- Main Office Address: 16 Road 6500, Kirtland, NM 87417
- Website: http://fourcornersfcu.org
- Phone: (505) 598-6623
- Charter Number: 16754
- Charter Year: 1965
- Employees: 12
- Routing Number: 302284090
- Membership: Four Corners Federal Credit Union has a membership base of 5,448 which is significantly smaller than the average credit union operating in the state of New Mexico. The average credit union in the state has 24,682 members. Over the past three years, the credit union’s total base of members has declined by 1%.
Four Corners Federal Credit Union: Financial Overview
As shown in the above chart, Four Corners Federal Credit Union’s assets have declined by 1.5% over the past year, while its auto loans – which is its largest category of lending – have declined by 11.5% over the past year. Furthermore, the company’s deposits have declined by 1.1% while its total loans have declined by 12.2%. ‘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. Four Corners Federal Credit Union has a total net worth of $4 million. This implies that the credit union has a net worth per member of $651 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. Beginning with Four Corners Federal Credit Union’s return on assets (aka ROA), on this statistic the credit union performs above the average comparable credit union. When we look at the year over year trends, we can see that ROA has improved given the 0.08% 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. Four Corners Federal 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. Finally, the net worth ratio for the credit union is 17.5% which is well above its peer group average of 13.0%. This metric has been relatively stable on a year over year basis and stood at 17.5% a year ago. Based on the NCUA guidelines, the credit union is considered to be well capitalized.
Overall, we believe Four Corners Federal Credit Union deserves a rating of 3.1 out of 5.0, which is above average. Importantly, please be aware that none of the information presented is meant to be investment advice or advice of any form. All of the information and views expressed in this note and on this site are purely for informational purposes.