GPCU: Overview of the Credit Union
The credit union first came into existence in 1951 and has been operating for the last 71 years. GPCU is based in the state of Kansas and is also the 5th largest credit union operating in the state; this is calculated based on its total assets. GPCU’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 GPCU’s operations. The company has a total of 13 branches and employs a total of 214 employees.
Discussion of the Credit Union’s Operations
The credit union currently has total assets of $819 million, total deposits of $722 million and net loans outstanding of $672 million. On average its members had a total of $8,800 deposited with the credit union – this is a helpful metric to monitor as it provides us with an idea of the level of engagement of the credit union’s membership base. In addition, the credit union has a loan to deposit ratio of 93%, which is higher 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. Lastly, GPCU’s loan portfolio mainly consists of auto loans and mortgages and lines of credit which represent 87% and 5% of its loan book and had outstanding balances of $587 million and $31 million, respectively.
Contact and Other Helpful Information
- Main Office Address: P.O. Box 459, Garden City, KS 67846-6235
- Website: http://www.gpcu.org
- Phone: (620) 275-2151
- Charter Number: 62542
- Charter Year: 1951
- Employees: 214
- Routing Number: N/A
- Membership: GPCU has a membership base of 82,054 which is significantly larger than the average credit union operating in the state of Kansas. The average credit union in the state has 14,535 members. Over the past three years, the credit union’s total base of members has increased by 2%.
GPCU: Financial Overview
The above chart summarizes the trends in key balance sheet items for GPCU. First off, it is noteworthy that across the board, all four items have increased over the past year. The credit union’s assets have grown by 13.2% while its total loans have expanded by 5.8%. In addition, the company’s auto loans have increased by 6.0% while its deposits have expanded by 19.7%. 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. GPCU has a total net worth of $87 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 $1,058 which is below the national average of $1,606.
Overview of the Credit Union’s Performance Metrics
The chart above compares GPCU’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. Starting with the company’s return on assets, on this metric GPCU is well above the average credit union in its peer set and over the past year ROA has improved substantially with a total change of 0.37%. Return on assets tells us how productive a company is being with its asset base. 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 been relatively stable. 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 10.6% and has been relatively stable compared with the prior year figure of 10.5%. The credit union is also well above 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.
Ultimately, after considering all of the relevant factors we rate GPCU 2.7 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.