Introduction to Green River Area Federal Credit Union
First established in 1959, Green River Area Federal Credit Union is a credit union based in the state of Kentucky. It is the 25th largest credit union operating in the state of Kentucky as measured by total assets. The credit union falls under the category: multiple common bond – primarily primary and fabricated metals. 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 3 branches and employs a total of 10 employees.
Discussion of the Credit Union’s Operations
Some of the key components of the credit union’s balance sheet are total assets of $57 million, total loans extended to customers of $47 million and customer deposits of $21 million. The average credit union in Green River Area Federal Credit Union’s peer set has a loan to deposit ratio of approximately 55%. In comparison, Green River Area Federal Credit Union has a loan to deposit ratio of 44% 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. Taking a closer look at the credit union’s loan portfolio, we see that auto loans represent 53% of the total and currently stands at $11 million, while there is $7 million of loans outstanding from mortgages and lines of credit which represents 35% of the credit union’s loan portfolio.
Contact and Other Helpful Information
- Main Office Address: 3000 Highway 144, Owensboro, KY 42303-0215
- Website: https://www.greenriverafcu.com
- Phone: (270) 926-0210
- Charter Number: 12852
- Charter Year: 1959
- Employees: 10
- Routing Number: N/A
- Membership: The credit union has a membership base of 4,994 which is significantly smaller than the average credit union operating within the state. Credit unions in Kentucky each have on average 15,648 members. Over the past three years, the credit union’s total base of members has declined by 9%.
Green River Area Federal Credit Union: Financial Overview
As shown in the above chart, Green River Area Federal Credit Union’s assets have grown by 13.1% over the past year, while its auto loans – which is its largest category of lending – have fallen by 18.4% over the past year. Furthermore, the company’s deposits have increased by 15.7% while its total loans have decreased by 13.9%. ‘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. Green River Area Federal Credit Union has a total net worth of $10 million. This implies that the credit union has a net worth per member of $1,982 which is greater than 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 Green River Area Federal Credit Union compares on these metrics, in addition to detailing how the credit union performed on each metric in the prior year. Starting with the company’s return on assets, on this metric Green River Area Federal Credit Union is below the average credit union in its peer set and over the past year ROA has declined with a total change of 0.26%. 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 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 17.4% which is well above its peer group average of 10.2%. This metric has declined on a year over year basis and stood at 19.2% 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 Green River Area Federal Credit Union 3.3 out of 5.0, which is above average. 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.