IDB Global: Overview of the Credit Union
First established in 1961, IDB Global is a credit union based in the state of District of Columbia and also one of the largest credit unions in the country. It is the 3rd largest credit union operating in the state of District of Columbia as measured by total assets. The credit union falls under the category: service – finance, insurance, real estate, trade. Unlike banks, credit unions like IDB Global are not insured by the Federal Deposit Insurance Corporation (FDIC) but instead receive deposit insurance from the National Credit Union Administration (NCUA), which operates in a similar fashion to the FDIC. The company has a total of 1 branch and employs a total of 45 employees.
Who Can Join?
Membership is open to individuals that fall into one of the following categories (1) employees of the IDB or IDB Invest; (2) immediate family members of an IDB or IDB Invest employee; (3) consultant of the IDB or IDB Invest with a contract of at least 6 months; (4) an Executive Director or Alternate Director of the IDB or IDB Invest; (5) an intern of the IDB or IDB Invest; (6) a retiree from the IDB or IDB Invest; (7) an immediate family member* of a Credit Union member.
Details on the Credit Union’s Balance Sheet
As previously indicated, the credit union currently has total assets of $731 million, which makes it larger than 89% of credit unions in the United States. IDB Global also has net loans outstanding to customers of $468 million and a deposit base of $606 million. Furthermore, the credit union has a loan to deposit ratio of 77% which is higher than credit unions of comparable size. IDB Global’s peer set of credit unions have a loan to deposit ratio of approximately 74%. A lower ratio is better since it means that a credit union’s lending activities are more comfortably covered by its deposit base. Lastly, IDB Global’s loan portfolio mainly consists of mortgages and lines of credit and auto loans which represent 92% and 4% of its loan book and had outstanding balances of $433 million and $19 million, respectively.
Contact and Other Helpful Information
- Main Office Address: 1300 New York Ave Nw, Washington, DC 20577-0001
- Website: https://www.idbglobalfcu.org
- Phone: (202) 623-3363
- Charter Number: 14176
- Charter Year: 1961
- Employees: 45
- Routing Number: 254074183
- Membership: IDB Global has a membership base of 10,372 which is significantly larger than the average credit union operating in the state of District of Columbia. The average credit union in the state has 8,557 members. Over the past three years, the credit union’s total base of members has declined by 9%.
IDB Global: Financial Overview
The above chart summarizes the trends in key balance sheet items for IDB Global. 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 9.8% while its total loans have grown by 6.2%. In addition, the company’s mortgages and lines of credit have increased by 10.5% while its deposits have grown by 32.3%. The net worth of a credit union provides us with an idea of how the credit union has performed over the years. It is the total value that the credit union has created for its members since inception. IDB Global has a total net worth of $87 million. This implies that the credit union has a net worth per member of $8,397 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 IDB Global 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 IDB Global 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 0.00%. Return on assets tells us how productive a company is being with its asset base. 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. IDB Global 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. Finally, the net worth ratio for the credit union is 11.9% which is well above its peer group average of 9.8%. This metric has declined on a year over year basis and stood at 12.4% a year ago. Based on the NCUA guidelines, the credit union is considered to be well capitalized.
Our final rating for IDB Global, after assessing the credit union on what we consider to be the important metrics, is 3.6 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.