Overview of Grand Trunk Credit Union

First chartered in 1945, Grand Trunk Credit Union is one of 209 credit unions that are based in the state of Michigan. Credit unions operating in Michigan have a total of $92 billion of assets and 5.8 million members. Overall, the state is the 6th most popular state in the country for credit unions. 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 2 branches and employs a total of 11 employees.

Discussion of the Credit Union’s Operations

The credit union has total assets of $41 million. It has a deposit base of $35 million which works out to $12,650 of deposits per member compared with the state-wide average of $13,823 and national average of $13,594. Grand Trunk Credit Union also has net loans outstanding of $13 million. The average credit union in Grand Trunk Credit Union’s peer set has a loan to deposit ratio of approximately 49%. In comparison, Grand Trunk Credit Union has a loan to deposit ratio of 39% which is clearly lower than the peer set. A lower ratio is generally better as it indicates that the lending activities of a credit union are more comfortably covered by its deposit base. Deposits are often the most cost effective source of funding for banks and credit unions. Moving on to the credit union’s loan portfolio, it mainly consists of the following: auto loans make up 73% of the portfolio and there is a total of $10 million outstanding and mortgages and lines of credit comprises 17% of the loan book and there is a total of $2 million outstanding.

Contact and Other Helpful Information

  • Main Office Address: 1275 Raymond Rd N, Battle Creek, MI 49014
  • Website: http://www.grandtrunkcu.com
  • Phone: (269) 965-1381
  • Charter Number: 5170
  • Charter Year: 1945
  • Employees: 11
  • Routing Number: 272476705
  • Membership: The credit union has a membership base of 2,736 which is significantly smaller than the average credit union operating within the state. Credit unions in Michigan each have on average 27,640 members. Over the past three years, the credit union’s total base of members has declined by 3%.

Grand Trunk Credit Union: Financial Overview

grand trunk credit union-balance-sheet-metrics

The above chart summarizes the trends in key balance sheet items for Grand Trunk 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 10.4% while its total loans have fallen by 1.0%. In addition, the company’s auto loans have increased by 2.3% while its deposits have increased by 13.7%. 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, Grand Trunk Credit Union’s net worth stands at $6 million. This implies that the credit union has a net worth per member of $2,285 which is greater than the national average of $1,606.

Overview of the Credit Union’s Performance Metrics

grand trunk credit union-selected-performance-metrics

The chart above compares Grand Trunk 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. Starting with the company’s return on assets, on this metric Grand Trunk Credit Union is below the average credit union in its peer set and over the past year ROA has been relatively stable with a total change of 0.01%. Return on assets tells us how productive a company is being with its asset base. The delinquency rate is a measure of what percentage of an entity’s loan book has fallen past due i.e. is delinquent. All else equal, a higher rate implies a worse performing loan portfolio. In the case of Grand Trunk Credit Union its delinquency rate is well above its peers and over the past 12 months the credit union’s delinquency rate has deteriorated. Finally, the net worth ratio for the credit union is 15.3% which is well above its peer group average of 10.6%. This metric has declined on a year over year basis and stood at 16.3% a year ago. Based on the NCUA guidelines, the credit union is considered to be well capitalized.

Conclusion

Ultimately, after considering all of the relevant factors we rate Grand Trunk Credit Union 3.7 out of 5.0, which is very good. 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.